Microsoft has released its financial report for the third fiscal quarter of 2025 (January 1 – March 31). According to the report, Xbox gaming division saw a 5% increase in revenue compared to last year (6% with constant currency). The total revenue reached $5.721 billion, making it the best third fiscal quarter ever for Xbox.
This result was mainly driven by content and services revenue, which grew by 8% year over year (9% with constant currency). Xbox Game Pass, Call of Duty, and Minecraft were highlighted by Microsoft as key contributors to this growth. This performance was significantly better than the previous quarter, where the growth was only 2%.
Xbox Hardware Sales Continue to Decline
Not everything was positive, though. Xbox hardware sales continue to fall, with a 6% drop year over year (5% in constant currency). This follows the -31% decline from the same quarter last year and the -29% decrease in both the first and second quarters of the current fiscal year.
However, as mentioned earlier, the overall results for Xbox are still positive. It is clear that Microsoft is focusing less on hardware and more on content and digital services, with Xbox Game Pass and a multi-platform publishing strategy. As a result, the drop in Xbox hardware sales in the last quarter is less important when compared to the overall growth of the platform.
