Microsoft became the No. 1 publisher on Sony’s PlayStation Store for pre-orders and pre-installs, while also recording record growth in its PC Game Pass cloud service, up 45% year-on-year, despite intense competition and a slowdown in the gaming market.
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According to Microsoft’s Q1 2025 report, the Xbox software and services segment increased revenue by 6% compared to the same period last year. Separately, the company noted an 8% increase in the content and services category. Such a significant increase was recorded against the backdrop of industry stagnation, which emphasizes the sustainability of Microsoft’s strategic vector in the field of digital distribution of games and the service monetization model.
Key growth drivers included Game Pass subscriptions, as well as consistently high user activity in Call of Duty and Minecraft. According to data presented during the earnings call with investors, Minecraft increased its average weekly user count by 75% compared to the previous period. Microsoft attributed the jump to the release of a movie based on the game, which stimulated audience engagement.
During an earnings call with investors, Microsoft CEO Satya Nadella said the company has become the largest publisher on the PlayStation platform by pre-orders and pre-installs. According to journalist John Welfare, this achievement is due to the success of titles such as Indiana Jones and the Great Circle, Forza Horizon 5, and DOOM: The Dark Ages. Although Microsoft did not disclose the breakdown of the metrics, this fact reflects the company’s growing role as a universal provider of gaming content that can compete even on third-party platforms.
Xbox Cloud Gaming reached a record: users spent 150 million hours in cloud streaming during the quarter, 10 million more than in the previous reporting period. Xbox console sales fell by 6% compared to the same quarter last year, but Microsoft notes that the rate of decline has begun to slow. According to analysts, the growing interest in cloud gaming may be due to increased demand in countries where buying a gaming console is especially expensive due to high import duties, such as Brazil.
PC Game Pass saw 45 percent year-over-year growth, which Microsoft described as a significant achievement amid competition from Steam and other PC gaming platforms. While there is no data on absolute subscriber numbers, the growth rate indicates the service is growing in popularity among users. The report emphasizes that PC Game Pass remains a key element of Microsoft’s gaming business in a highly competitive environment.
Microsoft has confirmed that the Xbox Showcase 2025 presentation is scheduled for June 8. At the event, the company will showcase upcoming game releases for Xbox, PC, and PlayStation platforms. In addition, Microsoft noted that the release of the Nintendo Switch 2 console presents a significant opportunity: the new system approaches the processing power of the Xbox Series S and Steam Deck, which opens up potential prospects for a wider audience.