Microsoft has released its earnings report for Q4 2025. While the company saw a significant 21% increase in operating profit, the gaming sector continues to face challenges, marking its sixth consecutive quarter of decline.
Key gaming metrics
- Hardware sales — down 32%
- Gaming division revenue — down 9%
CFO Amy Hood attributed the revenue drop specifically to lower-than-expected income from recent major releases. The report explicitly names Call of Duty: Black Ops 7 and The Outer Worlds 2 as key titles that underperformed.
The forecast for the upcoming quarter remains cautious. Microsoft anticipates a continued decline in hardware sales but is projecting growth for Xbox Game Pass subscribers to help offset these losses.