Xbox Game Pass has set a new revenue record, according to Microsoft’s latest earnings report. Xbox Game Pass first launched back in June 2017 with over 100 game options to choose from on PC and Xbox consoles. Since then, Microsoft has worked to regularly expand that catalog with new titles and same-day launches for games like the recently released Tony Hawk's Pro Skater 3+4.
The subscription service currently offers four distinct tiers: Xbox Game Pass for PC, Core and Standard for console, and Xbox Game Pass Ultimate — which combines the Standard and PC tiers, and includes Xbox Live Gold. Over the years, the cost of these tiers has gradually increased, and it’s rumored as of June 2025 that another Xbox Game Pass price hike may be on the horizon. Despite the rising cost of Xbox Game Pass, the service has continued to see steady increases in both sales and subscribers.
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In its Q4 and full-year earnings report, Microsoft revealed its Xbox Game Pass subscription service hit an all-time revenue high. As shared by IGN, Xbox Game Pass made “nearly $5 billion” in revenue for the first time since its initial rollout in 2017. The latest report reflects the last 12 months of earnings up until June 30, 2025, and notes Xbox gaming revenue up 10% year-over-year, along with a 13% increase in Xbox content and services.
Xbox Game Pass Sets New Revenue Record
The bulk of the earnings report shows solid growth for Microsoft, though it also reveals some areas of decline, including hardware revenue, which is down 22% year-over-year. Furthermore, the report fails to shed additional light on the exact number of Xbox Game Pass subscribers, though back in June it was reported that Xbox Game Pass had surpassed 35 million subscribers. Unfortunately, that number didn’t come from an official estimate, but rather from the LinkedIn profile of Microsoft’s Program Manager, Kevin K.
Without a direct report from Microsoft, it’s hard to determine the exact number of Xbox Game Pass subscribers as of July 2025. According to the last official Xbox Game Pass subscriber count shared by Microsoft back in February 2024, there’s only a difference of 1 million subscribers more than the figure shared by Kevin K. On LinkedIn. Similarly, a specific sales number has yet to be shared for Xbox Game Pass’s recently reported record-breaking revenue, though it’s safe to assume — given the “nearly $5 billion” statement — that the number is likely somewhere in the upper $4 billion range.
This milestone comes at a time when subscription services are becoming increasingly important in the gaming industry, both as a way to retain players, and attract new ones. Microsoft’s subscription service, in particular, has become known for its generous variety of game and genre options on offer, including ones that allow for local co-op and split-screen social play. With this in mind, it’ll be interesting to see if the success of Xbox Game Pass influences other publishers in their approach to digital distribution and subscription models in the future.
Xbox Game Pass Ultimate
Xbox Game Pass Ultimate is the highest tier of Microsoft's flagship game subscription service that offers over 100 game titles that you can play with a single purchase, making it one of the most outstanding value propositions of the Xbox ecosystem to date.
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