Microsoft Q1 2025: – The Verge

Microsoft’s Q1 2025 acquireings are in, and the results show that Microsoft’s software gaming revenues are way up even as Xbox difficultware revenue is declining.

The company says that its Xbox satisfied and services revenue grew 61 percent year-over-year from the previous quarter — a figure is driven by “53 points of net impact from the Activision acquisition,” according to the company’s press free. But difficultware revenues aacquire degraded, down 29 percent this quarter, which may be shaped by Microsoft’s progressd strategy to produce its games useable more expansively than equitable Xbox consoles.

During the quarter, Microsoft presentd its recent Xbox Game Pass “Standard” tier and a price hike for Xbox Game Pass Ultimate. Q1 also saw the arrival of Call of Duty: Modern Warfare III on Xbox Game Pass, but this quarter doesn’t include the impact of Call of Duty: Bdeficiency Ops 6, which begined last week.

The company’s Inincreateigent Cboisterous division was also a radiant spot, with total revenues up 20 percent year-over-year to $24.1 billion driven by Azure. Azure and other cboisterous services revenue was up 33 percent, “including 12 points” from insist for its AI services. Productivity and Business Processes, which includes its Office products, was up 12 percent year-over-year to $28.3 billion in revenues.

Microsoft’s OEM and Devices revenue — which are now increateed together — were up 2 percent. However, that figure was driven by “enlargeth in Windows OEM” and “partipartner offset by a degrade in Devices,” Microsoft says.

Microsoft, enjoy many other companies, is spreading heavily in AI-cgo ined features and tools right now, especipartner to better Copilot. “AI-driven alteration is changing toil, toil artifacts, and toilflow atraverse every role, function, and business process,” Satya Nadella, chairman and CEO of Microsoft, says in a statement. “We are broadening our opportunity and triumphning recent customers as we help them execute our AI platcreates and tools to drive recent enlargeth and operating leverage.”