Edit:
“Hardware revenue will probably sit somewhere between 800M – 1B for the quarter.”
Was too optimistic.
It’s estimated to be at ~330M in Q3.
This means hardware revenue contributed ~6% to Xbox total gaming revenue.
Which then means that 94% of Xbox total gaming revenue in their Q3 ’25 was driven by content & service.
And that big portion is up 8% compared to last year’s Q3, dragged down by -6% hardware revenue, totalling +5% overall.
Is that really a good result for an up to now 94% “content & services segment”, considering that, after last year’s Q3, there were Call of Duty, Indiana Jones, Stalker 2, Flight Simulator & other 3rd parties being put D1 into GP?
And considering that subscriptions themselves also fall into content & services segment?
+5% is growth no matter what, sure. No denying.
But … looking at what they’ve been throwing into their “content & services” playground since Q3 ’24, I don’t really see how +5%, while being growth, is a good result business-wise (ROI).
