Microsoft’s gaming revenue keeps going up, even though hardware sales are down

Vector collage of the Microsoft logo among arrows and lines going up and down. Image: The Verge

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

The company says that its Xbox content and services revenue grew 61 percent year over year from 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 ...

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