Xbox Official Xbox thread

Xbox Game Pass Revenue Was 'Nearly $5 Billion for the First Time' Over the Last Year​



"Xbox Game Pass revenue reached a new record for Xbox over the last year, achieving "nearly $5 billion" in revenue for the first time.

This comes from the company's Q4 and full-year earnings results, covering the last twelve months ending June 30, 2025. While CEO Satya Nadella announced the milestone on the call, he did not provide specific revenue numbers for Game Pass.

Nadella also did not share subscriber numbers. That said, Game Pass subscribers are confirmed to have reached 34 million back in February 2024, and a Microsoft employee's profile suggested just two months ago that this number had reached 35 million, though this is unverified.

Some of that growth likely comes from price hikes on the service that kicked off in July of last year. But it hasn't hurt that Xbox dropped a number of new first-party games on Game Pass especially in the last quarter of the fiscal year, including The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle."


 

Xbox Game Pass Revenue Was 'Nearly $5 Billion for the First Time' Over the Last Year​

"Xbox Game Pass revenue reached a new record for Xbox over the last year, achieving "nearly $5 billion" in revenue for the first time.

This comes from the company's Q4 and full-year earnings results, covering the last twelve months ending June 30, 2025. While CEO Satya Nadella announced the milestone on the call, he did not provide specific revenue numbers for Game Pass.

Nadella also did not share subscriber numbers. That said, Game Pass subscribers are confirmed to have reached 34 million back in February 2024, and a Microsoft employee's profile suggested just two months ago that this number had reached 35 million, though this is unverified.

Some of that growth likely comes from price hikes on the service that kicked off in July of last year. But it hasn't hurt that Xbox dropped a number of new first-party games on Game Pass especially in the last quarter of the fiscal year, including The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle."


Good to see. Although the haters are going to balk at "revenue", and insist on hearing about profits. But, yeah, this is more fuel strongly indicating those naysayers who have insisted Game Pass is an albatross (such as on this board) are talking out of their asses. It's a moneymaker. Because gaming division revenue is also breaking records, and growth is driven by both Game Pass and first-party sales. The latter are the games the naysayers have insisted have had their sales hurt by Game Pass. Clearly they haven't, but I'd chalk that up to those titles being sold on other platforms, now. While their case has been feeble in the past, I think there's still a case to be made first party console exclusives have had their Xbox sales hurt by Game Pass, but probably not. More likely the reason they aren't rising to the top of bestseller charts is simply because there aren't enough Xboxes out there, and this is compounded by the truth the games themselves haven't been good enough to drive PC buyers to float them into the annual Top 10's. Obviously the Gaming Division's soaring revenue isn't coming from hardware sales. Those have been atrocious in Microsoft's gaming division for the last year.

Overall, things are rosey.

That being said, I'm not clear what the strategy is, anymore. People don't want Xboxes. Without that bedrock, if the company is transitioning to being a glorified software developer, then Game Pass can't rely on Xbox owners subscribing because it procures them online MP access as a perk, for example. Its attraction will continue to lie in offering Day 1 access to blockbuster titles from their own studios in addition to third-party blockbuster titles like Clair Obscur: Expedition 33. Can it really attract enough PC gamers to depend on this long-term?

Microsoft seems to be betting heavy on the future of PC handhelds in the shorter term, here. Understandable. That product market is exploding.

I don't see Sony or Nintendo ever allowing Game Pass on their services. I'm skeptical Valve will ever make it native to Steam Decks. So for the long term, looking at 2030 and beyond, I guess Microsoft also realizes they are so deep-pocketed as a company that can just continue to be patient while waiting for cloud gaming to mature to the point the experience satisfies the mainstream to possibly become the dominant form of gaming. At that point you have to think they'll move more aggressively to get Game Pass bundled into every Smart TV OS, into Amazon Fire Sticks, into Roku sticks, and others who aren't direct competitors.

But, sadly for Xbox fans, I can't say I see any real indication they aren't content to let the Xbox itself die.
 
Good to see. Although the haters are going to balk at "revenue", and insist on hearing about profits. But, yeah, this is more fuel strongly indicating those naysayers who have insisted Game Pass is an albatross (such as on this board) are talking out of their asses. It's a moneymaker. Because gaming division revenue is also breaking records, and growth is driven by both Game Pass and first-party sales. The latter are the games the naysayers have insisted have had their sales hurt by Game Pass. Clearly they haven't, but I'd chalk that up to those titles being sold on other platforms, now. While their case has been feeble in the past, I think there's still a case to be made first party console exclusives have had their sales hurt by Game Pass, but probably not. More likely the reason they aren't rising to the top of bestseller charts is simply because there aren't enough Xboxes out there, and this is compounded by the truth the games themselves haven't been good enough to drive PC buyers to float them into the annual Top 10's. Obviously the Gaming Division's soaring revenue isn't coming from hardware sales. Those have been atrocious in Microsoft's gaming division for the last year.

Overall, things are rosey.

That being said, I'm not clear what the strategy is, anymore. People don't want Xboxes. Without that bedrock, if the company is transitioning to being a glorified software developer, then Game Pass can't rely on Xbox owners subscribing because it procures them online MP access as a perk, for example. Its attraction will continue to lie in offering Day 1 access to blockbuster titles from their own studios in addition to third-party blockbuster titles like Clair Obscur: Expedition 33. Can it really attract enough PC gamers to depend on this long-term?

Microsoft seems to be betting heavy on the future of PC handhelds in the shorter term, here. Understandable. That product market is exploding.

I don't see Sony or Nintendo ever allowing Game Pass on their services. I'm skeptical Valve will ever make it native to Steam Decks. So for the long term, looking at 2030 and beyond, I guess Microsoft also realizes they are so deep-pocketed as a company that can just continue to be patient while waiting for cloud gaming to mature to the point the experience satisfies the mainstream to possibly become the dominant form of gaming. At that point you have to think they'll move more aggressively to get Game Pass bundled into every Smart TV OS, into Amazon Fire Sticks, into Roku sticks, and others who aren't direct competitors.

But, sadly for Xbox fans, I can't say I see any real indication they aren't content to let the Xbox itself die.

Great post!

I just hope that Xbox can keep chugging along as I like the option of having more than two choices when it comes to consoles. Because if Xbox goes away, it'll just be Nintendo and Sony.
 

Xbox Game Pass Revenue Was 'Nearly $5 Billion for the First Time' Over the Last Year​



"Xbox Game Pass revenue reached a new record for Xbox over the last year, achieving "nearly $5 billion" in revenue for the first time.

This comes from the company's Q4 and full-year earnings results, covering the last twelve months ending June 30, 2025. While CEO Satya Nadella announced the milestone on the call, he did not provide specific revenue numbers for Game Pass.

Nadella also did not share subscriber numbers. That said, Game Pass subscribers are confirmed to have reached 34 million back in February 2024, and a Microsoft employee's profile suggested just two months ago that this number had reached 35 million, though this is unverified.

Some of that growth likely comes from price hikes on the service that kicked off in July of last year. But it hasn't hurt that Xbox dropped a number of new first-party games on Game Pass especially in the last quarter of the fiscal year, including The Elder Scrolls: Oblivion: Remastered, Doom: The Dark Ages, and Indiana Jones and the Great Circle."


So why'd they lay thousands of people off recently and cancel a bunch of games, shut studios down?

There are rumors the layoffs aren't even over yet.
 
So why'd they lay thousands of people off recently and cancel a bunch of games, shut studios down?

There are rumors the layoffs aren't even over yet.
Why do you think layoffs and record revenues are mutually exclusive?

Netflix laid off 500 people in a single quarter in 2022. Do you think that was a sign Netflix was anxious about long-term struggles? The company wants to maximize its yields. It will target employees and assets it thinks aren't producing the greatest ROI.
 
So why'd they lay thousands of people off recently and cancel a bunch of games, shut studios down?

There are rumors the layoffs aren't even over yet.
Got to feed the AI furnace, and gaming hasn't performed to the expectations of Microsoft (Even if a lot of it is their own mismanagement)
 
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Don't forget! Gamescom kicks off August 19th at 1:30 pm EST!
 
ROG/Xbox Ally handhelds release date announced as October 16th but no prices stated yet but supposedly will be $549/$899 or €599/€899


Also being introduced is a Handheld Compatibility Program where in your Xbox library you will be able to see if a game is compatible or not with the Ally Handhelds

Today, we’re excited to introduce the Handheld Compatibility Program—a new Xbox initiative designed to make more games ready to play on your supported handheld. We have worked with game studios to test, optimize, and verify thousands of games for handheld compatibility, allowing you to jump into the game without having to tweak settings, or requiring only minor adjustments.

At launch, you will be able to see handheld compatibility directly in your game library —look for the “Handheld Optimized” or “Mostly Compatible” badges, or use a filter to quickly find titles that are ready to play: 

  • Handheld Optimized: This indicates games that are ready to go—with default controller inputs, an intuitive text input method, accurate iconography, clear text legibility, and appropriate resolution in full-screen mode—so you can spend less time adjusting settings, and more time defeating that next big boss.
  • Mostly Compatible: This indicates games that may require minor in-game setting changes for an optimal experience on handheld.
Games will also feature a Windows Performance Fit indicator to reflect expected performance on your supported device. When a game is both “Handheld Optimized” and carries a Windows Performance Fit “Should play great” or “Should play well” badge, it signals compatibility and performance fit—giving you added assurance before you play.

But our work doesn’t stop there. We’re continuing to partner with developers to submit new and existing PC titles for handheld compatibility testing, so you can continue to grow your library of handheld compatible games over time.

Other Features announced

The Xbox Ally X is the first handheld to leverage the top-of-stack AMD Ryzen AI Z2 Extreme, paired with a powerful neural processing unit (NPU) to unlock upcoming AI powered features starting early next year—with more to come:

  • Automatic Super Resolution (Auto SR): A system-level feature that uses the power of the NPU to upscale games running at lower resolutions—delivering high-resolution visuals and smooth framerates across a wide range of games, with no additional changes required from game developers.
  • Highlight reels: AI captures your standout gameplay moments—like epic boss battles or victories—and generates short replay clips for you to share with friends or on social channels.
More AI-powered features will roll out over time as both Xbox and developers continue exploring what’s possible with the Ryzen AI Z2 Extreme.

And… More is Still Coming

The Xbox Ally and Xbox Ally X were built to evolve with the future of tech. As we look ahead, we’re continuing to build new features and options for players on handheld. Expect regular updates that unlock new capabilities, boost performance, and elevate your handheld experience. Here’s a sneak peek at what we’re working on:

  • Advanced shader delivery, a new feature that preloads game shaders during download, so select games launch up to 10x faster, run smoother, and use less battery on first play. More games will support this feature over time. 
  • A wide range of compatible accessories, including the newly announced ROG Raikiri II Xbox Wireless Controller—created by our partners at ASUS through the Designed for Xbox program—featuring a 1000Hz polling rate on PC mode, anti-drift TMR joysticks, and dual-mode triggers. The ROG Raikiri II Xbox Wireless Controller will ship out worldwide this holiday. More details will be shared soon.
  • And even more in the coming months, including enhancements to the docking experience for the Xbox Ally and Xbox Ally X as we work to enable a seamless, high-performance setup that supports big-screen gaming, Auto SR, intuitive controller pairing, optimized display output, and more!

 
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The Xbox Ally and Xbox Ally X prices may have leaked — and if true, it's not as bad as I thought


The logic of that is iterated by other UK websites:

Because as many have noted in reaction comments threads across these stories, the UK's British Pound MSRP and the USA's American dollar MSRP for Xbox hardware historically have typically been identical. For example, the Xbox Series X/S launched at an MSRP of £499/£299 in the UK, respectively, mirroring the exact price in the USA at $499/$299.

In other words, the websites reporting this converting to USD based on exchange rates are ignoring precedent. So unless tariffs or unforeseen supply-side issues bork things up, which they could, it's reasonable to expect the higher-end ROG Xbox Ally X to MSRP for $799 ($899 would seem to be the higher expectation).

We won't know until we know, but those predicting a $1K price point would seem to have been prematurely anxious.
More leaks confirming the expected price range from the previous leaks above. The previous leaks set an expectation of $599 and $799-$899. The new leak...

Rog Xbox Ally price leaks – and it’s cheaper than we expected

According to YouTuber, Destin Legarie, and his local Best Buy, the base Xbox Ally will retail at $549.99, while the Ally X will set you back $899.99.

While Microsoft and Asus haven’t confirmed the pricing structure, Legarie was also sent images of the demo stations set up at a Best Buy store, which has the $899.99 price tag plastered on it. These demo stations are said to be arriving in the “coming weeks”, which lines up with Asus ROG Xbox Ally release date.

Let’s not forget that in the world of PC handhelds, $899.99 isn’t that bad – the Lenovo Legion Go 2, for example, just opened pre-orders for $1,349.
...puts the base edition even lower, and appears to confirm the higher expectation for the X variant.

Xbox ROG Ally: $549
Xbox ROG Ally X: $899


*Edit* Goddamn, so I went to check out the other current flagship handhelds on the market, currently, specifically the upcoming Lenovo Legion Go 2 mentioned in my source article. The major advantage of the Legion Go 2 is the screen. It is 8.8" (not 7.0"), OLED (not IPS), resolution 1920x1200 (not 1920x1080), 144Hz (not 120Hz), HDR1000 (vs. no HDR?), and with DCI-P3 color grading (no information for Xbox). It also has detachable controllers.

But here are the drawbacks. It appears that it will only pack the Ryzen Z2 Extreme (not the Ryzen Z2 Extreme AI), it only has 16GB of RAM (not 24GB) clocked at 7500 MHz (not 8000 MHz), it has a smaller battery at 74 WH (not 80WH), its main port isn't Thunderbolt, and maybe most importantly of all, ironically, it's worryingly heavy at a whopping 2.03 lbs / 920g (not 715g). You'll recall I already made a table for that when one hands-on reviewer highlighted his displeasure with the weight of the ROG Xbox Ally. The Legion Go 2 will be 3.3x times as heavy as the Switch Lite!


iPad (11th Gen)477 g (16.8 oz)Mar-2025
Nintendo Switch + Joy-Cons398 g (14.0 oz)Mar-2017
Nintendo Switch Lite275 g (9.7 oz)Sep-2019
Nintendo Switch OLED + Joy-Cons420 g (14.8 oz)Oct-2021
Steam Deck (LCD)669 g (23.6 oz)Feb-2022
ASUS ROG Ally608 g (21.4 oz)Jun-2023
Steam Deck OLED640 g (22.6 oz)Nov-2023
Lenovo Legion Go (base module)640 g (22.6 oz)Oct-2023
MSI Claw A1M675 g (23.8 oz)Mar-2024
ASUS ROG Ally X678 g (23.9 oz)July-2024
Nintendo Switch 2 + Joy-Cons534 g (18.8 oz)Jun-2025
ASUS ROG Xbox Ally670 g (23.6 oz)Oct-2025
ASUS ROG Xbox Ally X715 g (25.2 oz)Oct-2025
Lenovo Legion Go 2920g (32.4 oz)Oct-2025

So for the GO to have a launch prices of $1049 for the base version compared to $899, if these leaks are accurate, shows you just how serious Microsoft is with this release. That's a curb-stomping on price.
 
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Another price increase in the US due to the Trump tarrifs. Complete insanity at this point.
 

Another price increase in the US due to the Trump tarrifs. Complete insanity at this point.

It didn't have to be this way.:mad:
 
It didn't have to be this way.:mad:
Apparently the majority of Americans voters actually want to pay more for things for some reason.

One more thing about the pricing: I built a Ryzen 5 7600/4060 Ti 16GB machine for my son for about the same price as the Galaxy Black Xbox. Pretty crazy when you think about it. Consoles are supposed to be the cheaper alternative to gaming PCs, but while the upfront cost is usually lower, the added expenses of online subscriptions and pricier games really narrows that gap.
 
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Apparently the majority of Americans voters actually want to pay more for things for some reason.

One more thing about the pricing: I built a Ryzen 5 7600/4060 Ti 16GB machine for my son for about the same price as the Galaxy Black Xbox. Pretty crazy when you think about it. Consoles are supposed to be the cheaper alternative to gaming PCs, but while the upfront cost is usually lower, the added expenses of online subscriptions and pricier games really narrows that gap.

Well I would add that its not just a cheaper alternative it's also plug and play. A PC is not plug and play and while they are much easier to use than they used to be there is still issues that come up with PC gaming.

In this situation from what I heard is PCs are exempt and consoles aren't from tariffs.
 
Well I would add that its not just a cheaper alternative it's also plug and play. A PC is not plug and play and while they are much easier to use than they used to be there is still issues that come up with PC gaming.

In this situation from what I heard is PCs are exempt and consoles aren't from tariffs.
Consoles suffer from the same tariffs that PCs do, barring some geographic nuances.
 
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