Xbox Game Pass has surpassed $5 billion in revenue for the first time, according to Microsoft‘s latest quarterly and full-year earnings report for the twelve months ending June 30, 2025. CEO Satya Nadella announced the milestone during the earnings call, though he did not disclose specific revenue figures for the subscription service.
Subscriber numbers were also not shared by Nadella. However, Game Pass had previously confirmed a subscriber base of 34 million as of February 2024. An unverified report from a Microsoft employee’s profile two months prior to this article suggested the number had grown to 35 million.
The growth in revenue is highly likely attributed, in part, to price adjustments implemented for the service in July of the previous year. Additionally,the inclusion of major first-party titles on Game Pass,particularly in the last quarter of the fiscal year,such as The Elder Scrolls: Oblivion: Remastered,Doom: The Dark Ages,and Indiana Jones and the Great Circle,has contributed to its success.
Xbox’s gaming revenue saw a 10% increase year-over-year, with Xbox content and services revenue rising by 13%. This growth was primarily driven by the performance of first-party content and Xbox Game Pass. In contrast, hardware revenue experienced a 22% year-over-year decline.
Despite these positive revenue trends, Xbox recently underwent notable workforce reductions, impacting hundreds of employees across its gaming divisions.This restructuring also led to the cancellation of several projects, including Everwild and the Perfect Dark reboot.
