Amidst sweeping layoffs and a strategic pivot, Microsoft delivered a remarkable win: its Xbox Game Pass subscription service generated almost $5 billion (£3.80 billion) in revenue during fiscal year 2025,

Speaking on an accompanying earnings call, as reported by Game Developer, Microsoft CEO Satya Nadella said that Xbox Game Pass’s annual revenue totaled just under $5 billion, with 500 million active users, and “nearly” 40 games in development. He added, “We surpassed over 500 million hours of gameplay streamed via the cloud this year.”

Microsoft touts its Game Pass success and its status as the top publisher of Xbox of both Xbox and PlayStation games this quarter.