Xbox Game Pass has hit a major financial milestone, generating nearly $5 billion in revenue over the past year. The achievement was revealed during Microsoft’s earnings call for Q4 and its full fiscal year, which ended on June 30, 2025.
While Microsoft CEO Satya Nadella highlighted the impressive milestone during the company’s earnings call, he refrained from disclosing the precise revenue figures for Xbox Game Pass. Similarly, updated subscriber figures weren’t shared either. However, it’s worth noting that back in February 2024, Game Pass had reached 34 million subscribers, and reports from a Microsoft employee’s profile suggest that number may have reached 35 million just a couple of months ago though this has yet to be officially confirmed.
Some of the growth in Game Pass revenue is likely due to subscription price increases introduced in July 2024. Despite the higher costs, Game Pass continued to gain popularity thanks to a strong lineup of first-party game releases, especially in the final quarter of the fiscal year. Major titles like The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle boosted engagement and added value to the service.
In total, Xbox saw a 10% year-over-year increase in gaming revenue, while earnings from content and services grew by 13%, largely fueled by first-party game releases and the continued success of Game Pass. In contrast, hardware sales dropped by 22% over the same period.
Despite this growth, Xbox has recently faced challenges behind the scenes. The company laid off hundreds of employees from different areas of its gaming division and canceled several projects, including Everwild and Perfect Dark, signaling a shift in focus and resource allocation moving forward.
