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.
The quarter’s major releases include South of Midnight on Game Pass, Clair Obscur: Expedition 33, The Elder Scrolls IV: Oblivion Remastered and A Minecraft Movie. The company also launched several in-game updates and DLCs for its games, noting Season 16 of Overwatch 2 and Season 3 for Call of Duty: Black Ops 6, alongside several Game Pass launches such as Call of Duty: WWII and the remasters of three Warcraft titles.
Outside of gaming, Microsoft reports that its server products and cloud services performed strongly in the quarter, growing by 27% with the help of Azure. Productivity and business services also grew 16% with Microsoft 365 products showing 16% and 21% revenue growth in commercial and consumer divisions, respectively. Its overall revenue increased by 18% (17% in constant currency) to $76.4 billion.
Satya Nadella, Microsoft CEO, said in a statement, “Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”