Microsoft divulged details of the company’s FY25 Q2 earnings on Wednesday (Jan 30), revealing gaming revenue had dropped 7% year-on-year, for the quarter ending December 31, 2024.
The small print included a significant decline in Xbox hardware revenue (29%), but revenue for content and services moved in the opposite direction, up 2%
Xbox Game Pass sits within the content and services line up the business, so titles such as Indiana Jones and the Great Circle, and Call of Duty: Black Ops 6 will have contributed to the modest increase.
The earnings report includes the holiday period which would usually be a reason for optimism but that has not materialized this time round.
Microsoft will be aiming to make strides in the months ahead, supported by the launch of flagship titles such as Doom: The Dark Ages, and The Outer Worlds 2.
Doom: The Dark Ages – Here is everything we know.
The latter is something of a curiosity as it will be an Xbox-published game launched on PlayStation 5 on Day One. For those players on Xbox Game Pass Ultimate and Game Pass PC, do not fret.
It will also be available on your platform on the first day, without the need to pay out the full amount.
Microsoft Earnings | Q2 FY2025 Xbox and Gaming Division Details
🟥Gaming revenue declined -7%
🟥Xbox hardware revenue dropped -29%
🟩Content and services grew +2%More details via earnings report ➡️ https://t.co/aSkpfbCd0A#Xbox #Microsoft pic.twitter.com/NmC2sDL3n3
— Shinobi602 (@shinobi602) January 29, 2025
Ahead of expectations
Reflecting on the earnings report and performances, Microsoft CEO Satya Nadella said Call Of Duty: Black Ops 6 “saw more players in its launch quarter than any other paid release in franchise history,” highlighting that particular contribution to the revenue totals.
Amy Hood, Microsoft’s Executive VP and CFO remarked that the small uplift in Xbox services revenue was “ahead of expectations driven by stronger-than-expected performance in Blizzard and Activision content.”
“We expect Xbox content and services revenue growth to be in the low to mid-single digits driven by first-party content as well as Xbox Game Pass.
Hardware revenue will decline year-over-year,” added Hood.
Image credit: Via Midjourney