Despite Microsoft's $69.6 billion revenue for Q2 2025, it's not looking good for Xbox Game Pass
The revenue for Xbox services and products was almost stagnant.
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That time of the year is here, and Microsoft published its revenue for Q2 2025 with an impressive sum: $69.6 billion, an increase of 12% compared to Q2 2024. According to the report:
- Operating income was $31.7 billion and increased 17% (up 16% in constant currency)
- Net income was $24.1 billion and increased 10%
- Diluted earnings per share was $3.23 and increased 10%
The Redmond-based tech giant has published the specifics of this revenue, and while most of its services are doing fine, with a slight increase of up to 20% in some areas, Xbox is not looking particularly good. Here’s why.
The revenue for More Personal Computing was $14.7 billion and “relatively unchanged,” per Microsoft’s words, with Xbox content and services revenue experiencing an increase of just 2%. These services include the now-industry standard gaming subscription model, Xbox Game Pass.
This means Xbox Game Pass is not doing precisely great. The increase in revenue is mainly unchanged, which means the Redmond-based tech giant might not have managed to scoop in more subscribers.
While it’s still too soon to draw any conclusions (remember, this is only Q2 2025), Xbox Game Pass might not be an option for many. The tech giant also added a new model, Xbox Game Pass Standard, which some agree offers less for a hefty price, and it angered many back when it was announced.
In other areas of the Q2 2025 report, Microsoft says its Revenue in Productivity and Business Processes was $29.4 billion and increased by 14% (up 13% in constant currency), with Microsoft 365 Commercial products and cloud services increased by 15%, the 365 Consumer products and cloud revenue services increased by 8%, LinkedIn revenue increased by 9%, and Dynamics products by 15%.
Revenue for Intelligent Cloud was $25.5 billion, and the company also experienced growth in the Windows OEM and Devices, although a slight one.
You can read the full report here.
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