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- Xbox’s overall revenue has increased by 5% YOY in FY25 Q3.
- This increase comes from Activision Blizzard titles, Game Pass, and other services.
- The hardware business continues to decline, reporting a 6% drop over the same quarter last year.
Xbox’s multi-platform approach and acquisitions have led to a rather interesting scenario. The gaming giant’s financial situation has improved considerably over the past years, but the hardware performance has not been the best in recent quarters.
Following multiple quarters of declining hardware earnings, Xbox’s latest financial report tells a similar story. Although gaming revenue has increased year-over-year, the hardware segment is still struggling due to the console’s declining popularity.
Why it matters: Xbox’s financials will shape the company’s future, and these reports show very clearly that the hardware business is not too lucrative for the gaming giant.
According to the earnings report, FY25 Q3 saw gaming revenue increase by 5% year-over-year. Xbox’s content and services segment also experienced notable growth of 8% year-on-year, largely thanks to positive results from titles like Call of Duty.
The gaming giant’s Activision merger is clearly bringing fruitful results each quarter, and the multiplatform releases of various high-profile exclusives are also making meaningful contributions to the overall figures.
On the other hand, hardware revenue for the gaming business fell 6% year-on-year. This drop off is significant since Microsoft already saw a 51% dip in the hardware segment last year, and things have only worsened in 2025.
Although the report does not bode well for the future of Xbox consoles, Microsoft has yet to give up on the segment. The gaming giant hopes to combat the declining revenue with an innovative approach to hardware, particularly with future gaming handhelds.
What are your thoughts on Xbox’s financial report? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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