Microsoft shared details on the company's financial results for Q2 FY25 on Wednesday, revealing that gaming revenue was down 7% year-over-year for the quarter ending Dec. 31, 2025. The quarter did see Xbox content and services revenue up 2%, to which the company credits growth in Xbox Game Pass. Xbox hardware revenue declined 29% year-over-year.
This is the first quarter in a full year not to see a massive year-over-year leap on paper, and that's because Microsoft's acquisition of Activision Blizzard King (and the large leap in revenue it provided) is now fully normalized in the company's results, with the last large leap being accounted for in Q1 FY25.
