Xbox Game Pass revenue nears $5B yearly

Xbox Game Pass has set a new revenue record for Microsoft's gaming division, generating "nearly $5 billion" for the first time during the past fiscal year.

The achievement was revealed in the company's Q4 and full-year earnings report, spanning the twelve-month period ending June 30, 2025. While CEO Satya Nadella acknowledged this milestone during the earnings call, he declined to share exact revenue figures for the subscription service.

Nadella also withheld current subscriber counts, though Game Pass officially reached 34 million members in February 2024. An unverified Microsoft employee profile recently suggested the service may have grown to 35 million subscribers.

Factors Driving Game Pass Growth

This financial success likely stems from multiple factors, including price increases implemented in July 2024. The service has also benefited from strong first-party game releases during the fiscal year's final quarter, featuring titles like The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle.

Microsoft's gaming division overall saw a 10% revenue increase compared to the previous year, with Xbox content and services growing 13% - partially fueled by Game Pass performance. However, hardware sales declined by 22% year-over-year.

Organizational Changes Continue

Despite these positive financial results, Xbox recently underwent significant workforce reductions across its gaming operations and discontinued several projects, including the anticipated Everwild and Perfect Dark titles.