Microsoft has shared its financial earnings for the third quarter of its 2025 fiscal year, and there’s good news for Xbox – with gaming revenue up, despite hardware revenue continuing to fall.
As a whole, Microsoft made $70.1bn in revenue during Q3 and saw a net income of $25.8bn, marking a 13 and 18 percent year-over-year increase respectively. That growth was predominantly driven by its Cloud and Office services, but its gaming division saw success too.
Overall, Xbox gaming revenue was up five percent year-over-year, and within that, Xbox content and services – which includes Microsoft’s first-party game releases and Game Pass – saw an eight percent increase. Indeed, Microsoft said it was the top publisher on both Xbox and PlayStation for the quarter.
While the period saw Avowed launch for Xbox and PC, the company primarily attributed its Q3 gaming growth to Call of Duty and Minecraft. Additionally, Game Pass subscriptions are up – but it’s unclear by how much, given membership figures haven’t been revised since Microsoft revealed they’d crossed 34m last February.