This week, Microsoft held their webcast and pushed out a press release for Fiscal Year 2025 Q1, outlining an increase in revenue companywide by 16%/$65.6 billion USD. Primarily driven by Microsoft 365 Commercial products, Azure, and other business-related products. Microsoft CEO Satya Nadella had this to say about their Q1 results (before Microsoft Gaming details):
“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”
And per Microsoft’s executive vice president and chief financial officer Amy Hood:
“Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year.”
Looking over Microsoft Gaming’s results, Gaming as a whole grew 43% “including 43 points of net impact from the Activision acquisition”. Net impact from the Activision acquisition in particular was $1.69B(illion) in revenue, with cost of said revenue totalled at $0.96B. With operating expenses totalling at $1.17B, operating income ultimately came up to a loss at $0.44B.
Besides the total ATVI acquisition’s impact, Xbox content and services revenue grew 61% as Xbox hardware continues its decline in revenue at 29% for FY25 Q1. Specifics weren’t given, but the continued increase in revenue is likely driven by Games as a Service titles from both third- and first-party portfolios across PC/Mobile/Console platforms, Xbox Game Pass, and the like. Satya also had this to say regarding the company’s latest Call of Duty: Black Op 6, per The Verge’s Tom Warren:
