Xbox hardware revenue fell 29% in the first quarter of fiscal 2025 compared to the same quarter in 2024…

Many agree that Xbox has changed since Microsoft acquired Activision Blizzard. Since the company joined Xbox last October, Microsoft’s video game division has been generating millions of dollars in additional revenue. Months ago, we reported that the company had achieved record revenues with Activision Blizzard, and the only negative was that console sales were constantly decreasing quarter after quarter. This has not changed since then.

Microsoft’s financial results for its last fiscal quarter, the first quarter of 2025, were published a few hours ago. In this case, we will focus on Xbox, which recorded a large increase in revenue related to services and video games. According to the Redmond company, game sales generated 43% more than in the same period of the previous year. However, it should be noted that all this is due to Activision Blizzard.

Xbox console sales continue to decline

Regarding content and services, Microsoft achieved a 61% increase compared to the previous year (with Activision contributing 53%). This difference can also be explained by Game Pass price increases and the new Standard tiers. Last but not least, Xbox console sales continue to decline. Hardware revenue is now down 29% compared to the same quarter of the previous fiscal year. This is already a relatively persistent downward trend that could threaten the future of consoles. It is also worth noting that the arrival of Call of Duty: Black Ops 6 on Game Pass is included in the report’s results.

Microsoft recorded a total revenue of $65.5 billion, which is a 16% increase compared to the same quarter last year, writes Windows Central.

The company’s cloud division was one of the biggest contributors to its revenue, reaching $24.1 billion, up 20 percent. Office products also generated $28.3 billion, up 12 percent from 2024.

Microsoft CEO Satya Nadella said the company remains focused on artificial intelligence. “AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process. We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage,” he said. However, the company will also have to do something about its hardware division if it wants to maintain its position in the console market…

Source: Microsoft, Windows Central