For the first time since 2020, the Xbox division has exceeded its planned growth targets for the fiscal year ending June 30, 2025. This is according to Microsoft's latest report to shareholders. Xbox's results have positively impacted the bonuses of the company's executives, including CEO Satya Nadella, for the first time in a long time.
According to the documents, the target was to increase revenue from Xbox content and services by more than 14%. This category includes digital games, DLC, subscriptions, advertising, cloud services, and royalties. The result was about 15%, which exceeded the plan and automatically triggered bonus payments.
This result is important not only financially. It marked the end of a four-year period of failures. From 2021 to 2024, Xbox failed to meet internal goals — first in terms of Game Pass subscribers, then in terms of revenue from digital content. At the same time, other Microsoft departments — Azure, LinkedIn, and Teams — consistently achieved their goals. For the gaming division, systematic failures reflected the difficulties of growth in a saturated market.
Exceeding the plan in 2025 was a turning point. Xbox is now betting on multiplatform and the development of digital content. The decision to release Halo: Campaign Evolved on PlayStation 5, as well as the steady growth of Game Pass, helped stabilize profits and make the direction more sustainable.
Analysts note that the success does not reflect the full picture: the figures do not take into account the profitability of the business and the costs of licenses and development. But for Microsoft, this is a positive signal — the company is strengthening its presence in the digital ecosystem.
Satya Nadella, who received $96.5 million for the year, stated: "Our goal is not just to increase revenue, but to create meaningful connections between platforms and players."
