Xbox Game Pass Hits $5 Billion in Annual Revenue

Xbox Game Pass revenue hit a new milestone for the brand in the past year, bringing in close to $5 billion for the first time ever.

This announcement came as part of the company’s Q4 and full-year earnings report, which covers the twelve-month period ending June 30, 2025. CEO Satya Nadella highlighted this achievement during the earnings call but did not share exact revenue figures for Game Pass.

Nadella also declined to provide updated subscriber numbers. However, it was confirmed that Game Pass hit 34 million subscribers back in February 2024. More recently, a Microsoft employee’s profile suggested the number may have grown to 35 million just two months ago, though this has not been officially verified.

Part of this revenue boost is likely due to price increases that took effect in July of last year. At the same time, Xbox introduced several major first-party titles to Game Pass, especially toward the end of the fiscal year, such as The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle.

Overall, Xbox gaming revenue increased by 10% year-over-year, while content and services revenue rose by 13%, largely driven by first-party content and the continued growth of Xbox Game Pass. In contrast, hardware revenue saw a decline of 22% compared to the previous year.

Despite these gains, Xbox recently laid off hundreds of employees across its gaming divisions and canceled multiple projects, including Everwild and Perfect Dark.