Microsoft reported revenue of $70.1 billion for the third quarter of its 2025 financial year. Azure and other cloud services revenue increased 33%, with Microsoft attributing 16 percentage points of that growth to AI services.
Xbox content and services revenue increased 8%. That figure was lower than the 14% previously stated in this article and still reflected the impact of Activision integration. It should not be read as proof of equivalent organic Game Pass subscriber growth.
What the numbers mean for gaming
Microsoft’s quarter showed that cloud and AI infrastructure remained its main growth engine. Gaming services grew, but the company did not provide evidence for the previously published claims of 70 million Microsoft 365 Copilot monthly users or 2.1 million paid GitHub Copilot enterprise seats.
For Xbox, the important distinction is between acquisition-assisted revenue and underlying platform momentum. Activision can lift reported content revenue while masking weaker performance elsewhere, so the 8% figure needs context rather than celebration.
Sources: Microsoft’s April 2025 announcement and the FY2025 Q3 investor release.
