Xbox Grows (Only) Thanks to Activision Blizzard in Q1 FY25
Microsoft's gaming revenue grew 43 per cent year over year in the last quarter. While Xbox content and services grew even more strongly, hardware revenue fell by almost 30 per cent. However, the outlook for the current quarter is cautious, despite the record launch of Call of Duty: Black Ops 6.
From July to September 2024, Microsoft's gaming revenue grew 43% year over year. Excluding the impact of the Activision Blizzard acquisition, the division would not have grown. Xbox content and services revenue grew 61%, including 53 points of net impact from the Activision Blizzard acquisition. Xbox hardware revenue declined 29%. "Results were ahead of expectations driven by stronger-than-expected performance in both first- and third-party content as well as consoles", said CFO Amy Hood.