Microsoft reports Xbox revenue rose in Q4 2025 despite hardware dip

Microsoft today released its earnings report for Q4 2025, including for its Xbox and gaming divisions. According to this report, total gaming revenue grew by 10%, and Xbox content and services revenue grew by 13%. This rise offset the losses of Xbox hardware, which dropped by 22% year-over-year.

According to the company’s press release, the total revenue growth in its personal computing division (the umbrella under which Xbox falls) was 9%, driven by both gaming and search and news advertising. The company’s earnings release notes that Xbox’s content and services revenue grew thanks to both first-party content and Xbox Game Pass.