PC Game Pass revenue up 45%, Xbox games now reach over 500 million monthly active users

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Xbox has expanded significantly and is now making more money in Q3 than ever before--Microsoft CEO Satya Nadella gives updates on Xbox's Q3 performance.

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Xbox's Q3'25 period was the best-ever third quarter in the history of the brand. Gaming generated $5.721 billion in the Q3 period from Jan - Mar 2025, driven by content, software, subscriptions and services, which made up 94% of total revenues. Hardware was down for the fifth consecutive quarter in a row.

Naturally, Microsoft was eager to expand on these results to investors. While we didn't get integral details like operating profits or even an update on Xbox Game Pass subscribers, Nadella did confirm some high-profile targets including a staggering 500 million monthly active user count across all platforms and geographies, with cloud also hitting 150 million hours streamed. PC Game Pass spending is also up +45%, no-doubt sparking the $5.4 billion content & services results, and Microsoft also took notice that Xbox dominated the PlayStation Store's pre-order charts at the very end of Q3.

In other Xbox news, Microsoft just raised the prices of Xbox consoles and accessories worldwide, and games will start costing $80 over the holidays.

Check below for a quick transcript of Nadella's comments:

We continue to transform the business and focus on margin expansion, as we bring our games to over 500 million monthly active users across devices.

We ended the quarter as the top publisher by pre-orders and pre-installs on both Xbox and the PlayStation Store.

PC Game Pass revenue increased over 45% year-over-year. With Xbox Play Anywhere, players now can access more than 1,000 games they can play across console and PC.

And just last week we brought cloud gaming to LG TVs. Cloud gaming set a new record, surpassing 150 million hours played for the first time this quarter.

We are also integrating AI across Xbox. New Copilot for Gaming is a personalized gaming companion that provides in-game assistance and expert coaching. And our first-of-its-kind Muse model can generate gameplay in real-time.