Xbox Game Pass earns $5B in a year

Xbox Game Pass has shattered revenue records for Microsoft, generating nearly $5 billion annually for the first time.

A New Milestone for Xbox Subscription Service

The achievement was revealed in Microsoft's Q4 and full-year financial report covering the period ending June 30, 2025. During the earnings call, CEO Satya Nadella confirmed the revenue landmark without disclosing exact Game Pass figures.

Subscriber Growth Amid Pricing Changes

While Nadella didn't share current subscriber counts, Game Pass officially reached 34 million users in February 2024. Recent unverified data suggests membership may have grown to 35 million.

The service's revenue surge follows July 2023's price adjustments and a strong lineup of first-party releases during fiscal Q4. Notable additions included enhanced editions of beloved franchises like The Elder Scrolls: Oblivion Remastered, Doom: The Dark Ages, and the new Indiana Jones and the Great Circle.

Mixed Performance Across Xbox Divisions

Microsoft reported a 10% overall gaming revenue increase and a 13% boost in content/services revenue, largely attributed to Game Pass growth. However, hardware sales declined 22% year-over-year.

The positive financial results contrast with recent Xbox workforce reductions and project cancellations affecting studios like Rare's Everwild and The Initiative's Perfect Dark.