LogInBesides that, Microsoft is doing exceptionally well financially, with its revenue and net income showing double-digit growth year-over-year.
Proving once again that the console wars are now well and truly a thing of the past, with PlayStation emerging as the undisputed winner, Microsoft has released its latest Q4 and Fiscal Year 2025 financial statement, revealing a continued decline in Xbox console sales.
Future
According to the report, sales of Xbox hardware have dropped by 22% over the past 12 months, marking the fourth year in a row that the console's graph has continued heading toward the bottom-right corner. This also represents the second-biggest decline in the past four years, surpassed only by a staggering 42% drop in FY24, which followed a 13% dip in FY23 and an 11% drop in FY22.
Other than that, the company itself is doing exceptionally well financially, with Microsoft reporting $76.4 billion in revenue in Q4 2025 – an 18% increase year-on-year – $34.3 billion in operating income, up 23%, and $27.2 billion in net income, marking a 24% YoY increase. For the full year, the company posted $281.7 billion in revenue, up 15%, $128.5 billion in operating income, up 17%, and $101.8 billion in net income, up 16%.
The tech giant's gaming division is also on the rise, with gaming revenue up 10% and Xbox content and services revenue growing 13%, driven, as per the report, by growth in first-party content and Xbox Game Pass – further reinforcing the idea of Xbox now being a gaming company first, a game developer second, and a console-maker third.
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