We have already said that Black Ops 6, the latest installment of Call of Duty, has been an unprecedented success and what that means for Xbox, who spent 69 billion a year ago to buy Activision / Blizzard / King. And we know this because Microsoft has presented its results for the first quarter of 2025, which show that their software gaming revenue has increased despite the decline in Xbox hardware revenue. The company states that its Xbox content and services revenue grew by 61% year-over-year […]
We have already mentioned that Black Ops 6, the latest installment of Call of Duty, has been an unprecedented success and what that means for Xbox, who spent 69 billion a year ago to buy Activision / Blizzard / King.
And we know this because Microsoft has presented its first quarter 2025 results, which show that its software gaming revenue has increased despite the decline in Xbox hardware revenue.
The company claims that its Xbox content and services revenue grew by 61% year-over-year compared to the previous quarter, a figure driven by “53 points of net impact from the Activision acquisition,” according to the company’s press release.
But hardware revenue fell again, by 29% this quarter, which may be influenced by Microsoft’s continued strategy to make its games available beyond Xbox consoles, a battle they have lost against Sony and Nintendo.
By the way, these numbers do not take into account the release of Call of Duty: Black Ops 6, which was launched last week. However, we know that the numbers have only improved since last Friday.
Microsoft’s numbers beyond gaming
The Intelligent Cloud division of the company is key in the profits, with total revenues that increased by 20% year-on-year to 24.1 billion dollars driven by Azure.
Azure and other cloud services revenue increased by 33%. Productivity and Business Processes, which includes its Office products, increased by 12% year-over-year to $28.3 billion in revenue.
Microsoft’s revenue from OEM and devices, which are now presented together, increased by 2%.
Microsoft, like many other companies, is heavily investing in AI-focused features and tools at the moment, especially to enhance Copilot. Microsoft’s AI business is set to surpass an annual run rate of 10 billion dollars this quarter, said Nadella on the call.
Despite all this, Microsoft has plummeted in the stock market today (a 5% drop in 24 hours), marking a black Friday.
Author: Chema Carvajal Sarabia
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