By Sagar V. Mankar Microsoft’s first fiscal quarter of 2025 showcases remarkable growth across its gaming segments, largely driven by the Activision Blizzard acquisition, despite a decline in Xbox hardware sales.
What Are the Key Financial Numbers?
Microsoft’s overall performance for Q1 FY2025 (ended September 30, 2024):
- Total Revenue: $65.6 billion (↑16% year-on-year)
- Net Income: $24.7 billion (↑11% year-on-year)
- Personal Computing Revenue (incl. Xbox): $13.2 billion (↑17% year-on-year)
- Gaming Revenue: $5.6 billion (up from $3.9 billion in Q1 FY2024)
How is the Gaming Division Performing?
- Xbox revenue increased by 61% across products and services outperforming the Cloud
- Total gaming revenue is up 43% (44% in constant currency)
- 43 points of net impact attributed to the Activision acquisition
- Strong performance in both first-party and third-party content
- This quarter featured the release of several major third-party titles, including EA Sports College Football 25 and Warhammer 40,000: Space Marine 2.
While most metrics show growth, Xbox hardware revenue declined 29% year-over-year.
What About Call of Duty: Black Ops 6’s Performance?
Speaking on an earnings call, Microsoft’s CEO Satya Nadella shared that the latest Call of Duty: Black Ops 6 achieved multiple milestones:
- Largest Call of Duty launch ever in day-one players
- Record-breaking Xbox Game Pass subscriber additions in a single day (breaking record of Bethesda Game Studios’ Starfield)
- 60% increase in unit sales on PlayStation and Steam
- Day-one availability on Xbox Game Pass Ultimate and Cloud Gaming, the first in the series
Microsoft has been slowly but steadily integrating the Activision Blizzard King portfolio into the greater Xbox ecosystem, launching recently Call of Duty: Black Ops 6 day one in Xbox Game Pass
What’s Coming Next for Xbox?
Microsoft’s 2025 gaming roadmap includes several major releases:
- DOOM: The Dark Ages (id Software)
- Fable (Playground Games)
- South of Midnight (Compulsion Games)
For more information, visit Microsoft’s official investor relations website. Remember to subscribe to Gaming Foodle for more news!