Microsoft pushes buck against a report stating the Activision Blizzard acquisition hasn't helped Xbox Game Pass by claiming it's missing context.

Microsoft's FY25 Q2 earnings reveal a decline in Xbox hardware revenue, while content and services revenue has increased. The company posted its latest earnings report on Wednesday, January 29, 2025.

Microsoft pulls in over $6.58 billion in revenue from its Xbox games division throughout Holiday 2024, driven primarily by software and services growth.

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.

Christopher Young was one of Microsoft's highest-paid executives, with a total compensation of $12 million in 2024

Microsoft responded to an article suggesting that the purchase of Activision Blizzard didn't bring the company the expected benefits. In a statement, the Redmond-based giant denies the information present in the article.

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Xbox's shift towards more high-margin businesses like Xbox Game Pass appears to have helped make the games division more profitable in Holiday 2024.

Microsoft's latest earnings report shows that Game Pass has rocketed skyward. Satya Nadella, CEO of Microsoft, announced the news during the report's webcast: "All up, Game Pass set a new quarterly record for revenue and grew its PC subscriber base by over 30% as we focus on driving fully paid subscribers."

This growth is particularly noteworthy, as many believed Game Pass had reached a plateau. Two major titles played a key role in this success, the standout being Call of Duty: Black Ops 6, which Nadella confirmed as the biggest launch in the franchise’s history:

Xbox Cloud Gaming, still in its Beta phase and exclusive to Xbox Game Pass Ultimate subscribers, has seen remarkable engagement. Alongside the 140 million hours streamed, PC Game Pass subscriptions also surged by 30% this quarter. So, what’s driving this growth?