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Microsoft’s gaming revenue declines 7% in June 30 quarter

Microsoft revealed in its earnings report today that its gaming revenue declined 7% (5% in constant currency) in the fourth fiscal quarter ended June 30, compared to a year ago.

Xbox content and service revenue declined 6% (4% in constant currency), driven by lower engagement hours and monetization in third-party and first-party content. It was partially offset by growth in Xbox Game Pass subscriptions.

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Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.