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Press release:

FY25 Q1 - Press Releases - Investor Relations - Microsoft

Slides

https://view.officeapps.live.com/op/view.aspx?src=https://microsoft.com/en-us/investor/earnings/FY-2025-Q1/Document/DownloadDocument/50/SlidesFY25Q1.pptx

Xbox FY25 Q1 gaming revenue is up 43% year-over-year, and it's again thanks to Activision Blizzard

Microsoft gaming revenue is up with strong results mostly due to Activision Blizzard.

www.windowscentral.com

 

[Sanepar]

So it was flat without activison.

 

[James Sawyer Ford]

Inorganic growth

 

[Hrk69]

 

[adamsapple]

• Gaming revenue is up 43% year-over-year, with this growth coming from the acquisition of Activision Blizzard King.
• Xbox content and services revenue is up 61% year-over-year, with most of the growth coming from the acquisition.

Looks like the acquisition is working.

GG Phil.

 

[ProtoByte]

So overall, revenue was entirely flat when accounting for Activision.
Content and services grew 8% when account for it. Perhaps that's attributed to the tail of PS/Nintendo ports, but most of those happened a couple of quarters back by now... when does/did the Gamepass price increase kick in?

 

[freefornow]

Hardware in freefall. Microsoft response

 

[digoutyoursoul]

Something they are incapable of overseeing effectively or don’t care enough to , is seeing a 29% decline

It doesn’t matter anyway, the groupies and fakes will show their support to them regardless

Rebrand it all as Gamepass and be done with it

 

[Pedro Motta]

Lol, they had to spend 70B to stay alive.

 

[mckmas8808]

Looks like the acquisition is working.

GG Phil.

Is it?

 

[jm89]

 

[Skifi28]

Hardware in freefall. Microsoft response

Far from doing nothing, they're porting their games.

 

[MisterXDTV]

Incredibile achievement:

0% growth without buying the biggest third-party publisher for 69 billion dollars

 

[Lagspike_exe]

Writing is on the wall for hardware.

 

[mckmas8808]

Are we ready to have that real conversation?

 

[Esca]

Lol
That's all I can do

 

[wolffy66]

Bottom line, gaming is paying off for MS, in a big way.

 

[Magic Carpet]

Hardware down revenue up.
Up all the way to cloud, where the money is made.

 

[BennyBlanco]

I wonder how much money Candy Crush is pulling in. I guess people still play it and it’s still big but I haven’t heard anyone talk about it in a solid decade.

 

[Mr Moose]

Damn, it was all Activison.

 

[clarky]

Bottom line, gaming is paying off for MS, in a big way.

Ten posts a year and everyone is a gem.

 

[Cre8]

Looks like the acquisition is working.

GG Phil.

Acquisition help Xbox hardware decline 29%. Yeah, GG Phil.

 

[ChorizoPicozo]

Next Year the shit its going to hit the fan and they will not be able to hide it.

 

[Robb]

Xbox FY25 Q1 gaming revenue is up 43% year-over-year, and it's again thanks to Activision Blizzard

Gotta hand it to Phil, he found the magic formula. By only spending $70B every few years he can keep Xbox afloat.

 

[RetroGamingUK]

Looks like the acquisition is working.

GG Phil.

How many years until they make the money back?

That’s the ONLY measure of success here.

 

[ChiefDada]

Looks like the acquisition is working.

GG Phil.

 

[ShaiKhulud1989]

So Microsoft is basically Activision at this point, even Bethesda is flat.

Microsoft Gaming here we go.

 

[Little Chicken]

 

[Magic Carpet]

I wonder how much money Candy Crush is pulling in. I guess people still play it and it’s still big but I haven’t heard anyone talk about it in a solid decade.

It's hard to talk about it over the sound of toilets flushing. It's where the game is played.

 

[mckmas8808]

So Microsoft is basically Activision at this point, even Bethesda is flat.

Microsoft Gaming here we go.

Basically, yes.

 

[kazuyamishima]

CF25 really helped hardware for this quarter, otherwise it would have been worst.

 

[Represent.]

Acquisition help Xbox hardware decline 29%. Yeah, GG Phil.

They dont care about the hardware.

 

[RetroGamingUK]

Next Year the shit its going to hit the fan and they will not be able to hide it.

Is this the last quarter where the Activision bump will heavily skew things?

 

[GHG]

Looks like the acquisition is working.

GG Phil.

I agree.

-29% is exactly what I wanted as well.

 

[mckmas8808]

They dont care about the hardware.

So why are they making new hardware for this Holiday season?

 

[James Sawyer Ford]

Looks like the acquisition is working.

GG Phil.

Subtraction (negative actual growth between both independent companies) by addition (merging)

GG Phil

 

[Elios83]

43% growth with a 43% impact from Activision
Is this the last quarter they can play the growth game thanks to Activision?

 

[RoboFu]

Q1. Was a good time for Xbox for sure.. neither was Q2 or Q3.

 

[mayham2199]

So Microsoft is basically Activision at this point, even Bethesda is flat.

Microsoft Gaming here we go.

Not surprising. Wasn't the issue with Zenimax is that they were struggling themselves?

The good thing for MS is they still have room to improve here. When they bring over Starfield it will do well on PS.

 

[MisterXDTV]

43% growth with a 43% impact from Activision
Is this the last quarter they can play the growth game thanks to Activision?

I think so: the deal closed on October 13, 2023

Next quarter is gonna be: October-December 2024

 

[ChorizoPicozo]

Is this the last quarter where the Activision bump will heavily skew things?

Is this the last quarter they can play the growth game thanks to Activision?

. I just asked GPT and it said yes.

 

[RetroGamingUK]

. I just asked GPT and it said yes.

2025 is going to be a bloodbath for Xbox isn’t it

 

[TransTrender]

. I just asked GPT and it said yes.

Hah! I can't wait to see how they spin these numbers.

 

[James Sawyer Ford]

 

[Hookshot]

When will the Activision stuff have paid for itself?

 

[Woopah]

How many years until they make the money back?

That’s the ONLY measure of success here.

That's not how acquisitions work. They already have the assets on their books and don't need to "make the money back"

They dont care about the hardware.

Why would they not care about hardware? Selling more hardware would result in more money for them.

 

[PeteBull]

Writing is on the wall for hardware.

Even assuming most positive scenario of new xbox launching holidays 2026- that is still long whole 2 years the xbox division gonna have to survive somehow

 

[TVexperto]

That decline is huge if you also include all the thousands of xbox controllers they are making and selling

 

[ChorizoPicozo]

2025 is going to be a bloodbath for Xbox isn’t it

Well, they should finally have a steady stream of games, but if those games perform like Ara, Hellblade 2, RedFall, Shattered Space, Hi-fi and Forza (so, basically all of their releases) they are cooked. Avowed looks like a AA game. And Indiana Jones is like an ill-conceived game, and with the further decline of their hardware. How are those exclusives supposed to perform; have a chance to make money on a dead platform

shit. you are damn right. they better speed up those PS5 ports PRONTO!!!

 

[ChorizoPicozo]

Hah! I can't wait to see how they spin these numbers.

PlayStation Ports are their only hope for the mighty spin.