420°

Microsoft Gaming Revenue Declines 7%, Xbox Hardware Down 29% Year-on-Year

Microsoft announced its financial results for Q2 of fiscal year 2025, including an update on its gaming business, with growth in Game Pass not enough to compensate for a massive drop in Xbox hardware revenue.

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simulationdaily.com
134d ago
ocelot07134d ago

GP only grew 2%? Even with COD releasing on the service?

134d ago Replies(1)
CrashMania134d ago (Edited 134d ago )

@abriael, he's getting downvoted for creating alts and spamming the site on a daily basis lol.

jznrpg134d ago (Edited 134d ago )

Revenue grew by 2% That’s not good. They don’t say if there is any actual profit and what the operating costs are because it wouldn’t be favorable for their stock price. If it was good news they would be more detailed in their numbers

Plague-Doctor27134d ago

2% revenue growth was for all content and services, not just GP. So no idea if game sales were down 8% but GP subs were up 10% or w/e. Still, flat growth after a 12% price hike in GP and COD sales being up 60% YoY, these are not good numbers

1Victor133d ago

Well it’s not too late to go SEGA drop the next console and go full publisher and hope that Sony and Nintendo allow GP on their consoles.
They could also try to run in the knees deep muddy water and release a new console in the hopes it takes up like the 360 and turn everything around to what they want but realistically if they go with option B and fail it will be the end of Xbox consoles and perhaps the brand as well as no one call their service Xbox/PC game pass just game pass 🤷🏿

SeTTriP133d ago

The 360 turned nothing around, the numbers where inflated.xbox was never a competitor, it just sounds good when making headlines.in reality Xbox has a 40 to 50mil user base per generation and that needle isn't moving.thats scraps in the gaming industry, way to much overhead.

mudakoshaka133d ago

People are not playing rainbow CoD. I started the campaign but as soon as I saw all the old, cool male characters either in a wheelchair or portrayed as a ”white devil”, I shut that shi* down.

MrNinosan133d ago

GP didn't grew, GP actually declined but Revenue grew due to the price hike.
Most likely, GamePass are down to around 30 million users now, down from the 37 millions or so 2022.

FinalFantasyFanatic133d ago

They spend a lot acquiring COD, which people bought/played on PS anyway, then you have to keep acquiring games to feed the GP monster, then you look at the state of AAA games lately and whether people want to actually play them. Plus, Xbox hasn't released many must play exclusives, and not many people are interested in their hardware (except for those that buy all the limited edition consoles and controllers for some reason).

Also doesn't help that we have a cost of living crisis too, it's understandable that they would be struggling.

Chevalier133d ago

But all the Xbox fans told us just this week that Xbox was doing amazing?! Some more crow being served now as a main course

+ Show (6) more repliesLast reply 133d ago
crazyCoconuts134d ago

This was supposed to be the culmination of Phil's strategy: COD on GamePass.
Didn't move consoles
Didn't move GamePass
Made less money than last year even with the Indiana Jones blockbuster there to prop it up

Change is a'coming

134d ago Replies(4)
Abriael134d ago

What you're reading doesn't mean what you think it means.

Eonjay133d ago

It sounds like revenue went down because last year Call of Duty was not a part of GamePass. It also sounds like Gamepass was not able to mitigate the losses. Let's not also forget that GamePass got a price hike YoY. So to have it go up only 2% is really odd considering COD was seen a potential driver for GP. It's a real head scratcher.

Hardware fell by 29% but gaming revenue only fell by 7%. I couldn't figure out what was keeping their game Rev so high in comparison (given the lackluster GP increase) but the answer is obvious: it's PlayStation. It's a treasure trove for Microsoft.

badz149133d ago

Indiana Jones was not a blockbuster sales for them. It debuted 14th in the US, remember?

blackblades133d ago

Most probably said they'll wait for the ps5 version. They might as well release on same day at this point. Keep Xbox console around for those loyal suckers like colteast and the others and still release on other platforms same day they'll be shell shocked

badz149133d ago

xbox consoles are for those paying for GP (most probably Ultimate at this point because the lower tiers suck!) and they are getting their games on there day 1. hardly suckers IMO. now just how many Day 1 releases they are getting per year, however, depends on MS's generousity.

let's be honest, the allure of GP is tempting but for those not having as much time to game like when we were younger or those gaming focus Youtubers, the offer falls flat on its face considering we will NEVER have time to make paying feels worth it.

Destiny1080134d ago

xbox sales down 30%

Playstation sales up 30%

134d ago
Aloymetal134d ago

Color me surprised.
Gamepass is almost 9 yrs old and still hasn't turned any tables, I think it needs another 20 yrs in the market to make a little dent. Lol

133d ago
134d ago Replies(3)
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30°

ASUS ROG Xbox Ally is the “tightest collaboration” between Microsoft’s Gaming and Windows teams ever

Xbox boss Phil Spencer explains that the new ASUS ROG Xbox Ally X is Microsoft's best collaboration between gaming and Windows teams.

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videogamer.com
60°

Inside the ‘Dragon Age’ Debacle That Gutted EA’s BioWare Studio

The latest game in BioWare’s fantasy role-playing series went through ten years of development turmoil

In early November, on the eve of the crucial holiday shopping season, staffers at the video-game studio BioWare were feeling optimistic. After an excruciating development cycle, they had finally released their latest game, Dragon Age: The Veilguard, and the early reception was largely positive. The role-playing game was topping sales charts on Steam, and solid, if not spectacular, reviews were rolling in.

HyperMoused4h ago

Its easy they called the die hard fans people in their nerd caves who will buy anything and then went woke to reach modern audiences....insulting the nerds in their caves along the way showing utter contempt for their fan base. very hapy it failed and any company who insults their fan base and treat their customers with contempt and insults, in future, i also hope fail.

neutralgamer199256m ago

It’s disappointing but not surprising to see what's happening with Dragon Age: The Veilguard and the broader situation at BioWare. The layoffs are tragic — no one wants to see talented developers lose their jobs. But when studios repeatedly create games that alienate their own fanbase, outcomes like this become unfortunately predictable.

There’s a pattern we’re seeing far too often: beloved franchises are revived, only to be reshaped into something almost unrecognizable. Changes are made that no one asked for, often at the expense of what originally made these games special. Then, when long-time fans express concern or lose interest, they’re told, “This game might not be for you.” But when those same fans heed that advice and don’t buy the game, suddenly they're labeled as toxic, sexist, bigoted, or worse.

Let’s be clear: the overwhelming majority of gamers have no issue with diversity, LGBTQ+ representation, or strong female leads. In fact, some of the most iconic characters in gaming — like Aloy, Ellie, or FemShep — are proof that inclusivity and excellent storytelling can and do go hand in hand. The issue arises when diversity feels performative, forced, or disconnected from the narrative — when characters or themes are inserted not to serve the story, but to satisfy a corporate DEI checklist. Audiences can tell the difference.

When studios chase approval from a vocal minority that often doesn’t even buy games — while simultaneously dismissing loyal fans who actually do — they risk not just the success of individual titles, but the health of their entire studio. Telling your core customers “don’t buy it if you don’t like it” is not a viable business strategy. Because guess what? Many of us won’t. And when the game fails commercially, blaming those very fans for not supporting it is both unfair and self-defeating.

Gamers aren’t asking for less diversity or less progress. We’re asking for better writing, thoughtful character development, and a respect for the franchises we’ve supported for decades. When you give people great games that speak to them — whether they’re old fans or new players — they will show up. But if you keep making games for people who don’t play them, don’t be surprised when those who do stop showing up

70°

Official Microsoft Flight Simulator Cockpit Revealed by Next Level Racing

Next Level Racing just revealed an officially licensed flight simulation cockpit for Microsoft Flight Simulator 2024 and MSFS 2020.

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simulationdaily.com
Obscure_Observer13h ago(Edited 13h ago)

My god!

Darth gonna buy this! XD

darthv727h ago

Tempting... but I have to say I am more of an arcade deluxe cab fan. I loved the ones for Galaxy Force, Thunder Blade and After Burner.