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- Xbox generated over $6.5 billion in revenue this holiday quarter.
- FY2025’s quarter 2 was the second-best holiday period for the company.
- Hardware sales declined but content and services grew once again.
Xbox’s multiplatform strategy has alienated a lot of hardcore fans, but one cannot say that it isn’t working. According to the recent Q2 reports Xbox has had one of its best holiday quarters of all time, and most of it is thanks to game sales and Activision Blizzard.
Why it matters: Fans have been skeptical about the recent changes in policy from Xbox but this report showcases that the company knows what it’s doing.
Xbox was able to make a whopping $6.58 billion in revenue this holiday quarter as per Microsoft’s FY25 Q2 report. This ended up being the second-best holiday revenue in the history of the gaming giant, only behind last year’s holiday revenue of $7.11 billion.
According to the documents, the gaming revenue increased by $1.2 billion mostly due to the growth in the Xbox content and services, which saw a 24% hike due to the Activision Blizzard acquisition.
On the other hand, the Xbox hardware revenue decreased overall due to the mediocre sales of the Xbox Series consoles.
It’s obvious to everyone that Microsoft is going all in on the third-party multiplatform strategy now that Activision game sales are bringing in record revenue for Xbox. But, it will be interesting to see what the gaming giant does with hardware as console sales are constantly declining.
Phil Spencer has said that consoles are still a core brand focus, but with the company’s PR declaring everything an Xbox and Spencer emphasizing the need to evolve new hardware, only time will tell what will happen to the legendary console.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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