Xbox Game Pass made almost $5 billion for Microsoft last year

Game Pass generated almost $5 billion for Microsoft last year, accounting for around 20% of Xbox’s revenue

Microsoft has just reported its Q4 2025 earnings, and they have confirmed that Xbox is growing. Xbox’s content and services revenues are up 13%, despite a 22% drop in hardware revenue. Overall, gaming revenue is up 10%, with Xbox Game Pass generating yearly revenues of almost $5 billion.

Xbox’s growth is thanks to the success of Game Pass and the popularity of Xbox titles on PlayStation consoles. Microsoft is now the top game publisher on Xbox and PlayStation, thanks to games like Call of Duty, Forza Horizon, and Oblivion Remastered.

When it comes to gaming, we have 500 million monthly active users across platforms and devices. And we are now the top publisher on both Xbox and PlayStation this quarter, with the successful launches of Forza Horizon 5 and Oblivion Remastered. The Call of Duty franchise has never been stronger: 50 million people have played Black Ops 6. Total hours surpassed 2 billion.

Minecraft saw record monthly active usage and revenue this quarter, thanks in large part to the success of the Minecraft movie. And we have nearly 40 games in development, so much, much more to come. We surpassed over 500 million hours of game play streamed via the cloud this year. And Game Pass annual revenue was nearly $5 billion for the first time.

– Microsoft CEO Satya Nadella

Despite Xbox’s growth, Microsoft has chosen to make heavy layoffs in its gaming segments. This has resulted in the shutdown of many projects and the closure of “The Initiative.”

Microsoft has claimed that Xbox has nearly 40 games in development. Before the end of this year, Microsoft will release a large number of major titles. This includes Gears of War: Reloaded, The Outer Worlds 2, Call of Duty: Black Ops 7, and Keeper.

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