Xbox Hardware Sales Drop 29% as Game Pass Hits Record Revenue

Microsoft's Q2 FY25 report shows declining console sales but highlights growth in Game Pass subscriptions and multiplatform game sales.

Microsoft's gaming revenue fell 7% year-over-year in Q2 FY25, largely due to a 29% drop in Xbox hardware sales driven by lower console volumes.
Xbox Game Pass set a new quarterly revenue record, with PC subscriptions growing by over 30% and significant contributions from Call of Duty: Black Ops 6.
Call of Duty: Black Ops 6 became the top-selling game on both Xbox and PlayStation, with its launch quarter seeing more players than any previous franchise release.
Microsoft's multiplatform strategy, including releasing first-party games like Indiana Jones and the Great Circle on rival consoles, drove 64% of its December game sales on PlayStation.
Xbox Cloud Gaming also saw record engagement, with 140 million hours streamed during the quarter, as Microsoft focuses on high-margin services and long-term profitability.