Microsoft reported its latest 2025 quarterly earnings results Wednesday, revealing growth for Microsoft Gaming but poor sales for Xbox gaming consoles.
The tech company’s gaming-specific sales reached $5.5 billion for the three-month period which ran April 1-June 30, up 10% from the $5 billion in the comparable 2024 quarter.
Content and services sales increased 13%. Hardware revenue, which is made up of sales for Xbox devices, including the Xbox Series X and S consoles, was down 22% total. (For comparison, last quarter, console sales fell just 6%).
During the quarter, Xbox’s notable releases included “South of Midnight,” third-party title “Clair Obscur: Expedition 33,” “The Elder Scrolls IV: Oblivion Remastered,” “DOOM: The Dark Ages,” as well as updates for ongoing franchises including “Minecraft,” “Call of Duty,” “Diablo,” “Overwatch,” “Halo” and “World of Warcraft.”
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For Microsoft overall, Wall Street forecast earnings per share (EPS) of $3.38 on $73.8 billion in revenue, according to analyst consensus data provided by LSEG. Microsoft reported diluted EPS of $3.65 on $76.4 billion in revenue.
“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” Microsoft chairman and CEO Satya Nadella said in a letter to shareholders. “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”
Microsoft executive vice president and CFO Amy Hood added: “We closed out our fiscal year with a solid quarter, highlighted by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% (up 22% in constant currency) year-over-year.”
