Xbox hardware revenue fell 29% in Q2 FY25
That's a big dip, but Microsoft saw this coming a year ago.
Xbox hardware revenue has fallen 29 percent year over year compared to Q2 2024. Microsoft (MSFT) announced the decline in its Q2 2025 earnings report released on January 29, 2025.
![An image showing Microsoft in after-hours trading for January 29, 2025 An image showing Microsoft in after-hours trading for January 29, 2025](https://d1lss44hh2trtw.cloudfront.net/resize?type=webp&url=https%3A%2F%2Fshacknews-www.s3.amazonaws.com%2Fassets%2Feditorial%2F2025%2F01%2Fmsft-after-hours-trading-jan-29-2025.png&width=986&sign=iE5_HKTMD62vVdl4RC-XOl85NSCbdFX9gZ_IevmaHxQ)
The decline in hardware revenue was not unexpected. Microsoft stated in its Q2 2024 earnings report that hardware revenue would decline. That prediction came true. It’s quite the dip, though, as Xbox hardware was up three percent in Q2 2024 over Q2 2023. To now see a 29 percent decline in Q2 2025 is jarring, although perhaps expected this far into the current generation’s lifecycle. It’s also worth noting that Xbox has focused more on software and services in recent years.
Also worth noting is that Microsoft doesn’t provide any context when it talks about hardware revenue. While it says it declined 29 percent from Q2 2024, we don’t know from what. The entire gist of Microsoft’s Xbox hardware reporting comes down to whether it’s up or down, but nothing else.
Feel free to dig more into the Microsoft Q2 2025 earnings report and stick with Shacknews for all your financial needs regarding the gaming and tech industry.
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Bill Lavoy posted a new article, Xbox hardware revenue fell 29% in Q2 FY25