Microsoft CEO, Satya Nadella, announced during the company's Q3 FY25 earnings call that Xbox was the top publisher on the PlayStation Store for preorders and preinstalls in Q1 2025.
Gaming revenue increased by 5% year-on-year, driven by Xbox Game Pass, Call of Duty, and Minecraft, while Xbox content and services revenue saw an 8% increase. However, revenue for Xbox hardware declined by 6% compared to the same period last year.
Microsoft focused on margin expansion and expanding its games to over 500 million monthly active users across devices. PC Game Pass revenue grew over 45% year-over-year, and cloud gaming set a new record, with over 150 million hours played in the quarter.
Microsoft has embraced a multiplatform strategy by releasing first-party Xbox games on PlayStation and Nintendo consoles. Upcoming releases like Gears of War Collection are rumored to be coming to PS5, following recent releases like Indiana Jones and Forza Horizon 5 on PS5.