The clearest 2025 signals were about how games reach players, not a single industry-wide growth story. Microsoft reported higher gaming revenue for its fiscal year, Valve announced wider SteamOS support for handheld PCs, and one small studio described its development plans. The available evidence does not establish Amazon Luna’s position in 2025 or represent the health of the games industry as a whole.
Microsoft: gaming growth alongside a cross-device strategy
Microsoft reported that gaming revenue rose $2.0 billion, or 9%, in the fiscal year ended June 30, 2025. Xbox content and services revenue increased 16%. Microsoft attributed the latter growth in part to the Activision Blizzard acquisition and Xbox Game Pass, so the figures should not be read as organic growth alone or as a forecast. Microsoft’s 2025 Annual Report is the source for both results and the company’s explanation.
Microsoft describes gaming as spanning PC, console, mobile and cloud. Its annual report says the business depends on factors including active users, content availability, exclusive content, device computation and reliability, and new experiences. That is Microsoft’s own account of what it considers strategically important—not an independent prediction that any one platform or business line will win.
Amazon: Luna’s 2025 position is not established here
The available official Amazon source is a Q3 2020 earnings release that announced Luna as a cloud gaming service and described an early-access offering. It provides historical context, but it does not establish Luna’s availability, scale, strategy or competitive position in 2025. It also does not support a comparison between Luna and Xbox cloud gaming for that year. Amazon’s Q3 2020 earnings release.
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Valve: SteamOS moves onto another handheld PC
On January 7, 2025, Valve said that the Lenovo Legion Go S “Powered by SteamOS” was the first officially licensed handheld to ship with SteamOS. Valve also said work on SteamOS for that device would improve compatibility with other handhelds. Its announcement indicates a plan to extend the operating system beyond Steam Deck; it does not show how many devices sold or how widely players adopted them. Valve’s SteamOS announcement.
Valve’s SteamOS team described the goal this way: “We built this operating system to provide a seamless user experience optimized for gaming, while retaining access to the power and flexibility of a PC.” The statement points to Valve’s effort to combine a gaming-focused interface with the flexibility of a PC, rather than evidence of a particular market outcome.
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Small studios: one example of cautious release planning
In a July 8, 2025 update, Lunar Software said that ROUTINE remained in active development and that it would not commit to a release window until it felt confident. The studio described a core team of three, working with additional contributors. Lunar Software’s ROUTINE update.
This is a specific example of a small team managing expectations around a game still in development. It does not establish typical startup finances, employment conditions, closure rates or prospects across the industry.
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What EA’s digital-sales estimate says—and what it doesn’t
Electronic Arts estimated that digital purchases made up a rising share of its full-game units sold on specified Xbox and PlayStation consoles across three fiscal years:
| EA fiscal year | Estimated digital share of full-game units |
|---|---|
| 2023 | 68% |
| 2024 | 73% |
| 2025 | 78% |
These are EA estimates based on unit counts for the specified consoles, reported in EA’s fiscal 2025 Form 10-K; they are not a measure of all games, platforms or publishers. Electronic Arts’ fiscal 2025 Form 10-K.
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How to read these signals together
The disclosures measure different things. Microsoft reported revenue growth for a fiscal year ending June 30; EA estimated the digital share of its own console full-game units; Valve announced operating-system support; and Lunar Software gave a project update. They provide useful company-level clues about distribution, access and development, but they are not interchangeable measures of performance.
Microsoft’s report and Valve’s announcement both point to access across devices as a strategic concern, but in different ways: Microsoft names PC, console, mobile and cloud in its business framing, while Valve’s announcement is specifically about SteamOS on handheld PCs. Neither source supplies a basis for ranking their overall prospects. The evidence cited here also does not establish a validated whole-industry growth rate or a representative picture of startup conditions in 2025.
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