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

/ The company saw a 61 percent increase in Xbox software revenues. Cloud was also a bright spot for the company.

By Jay Peters, a news editor who writes about technology, video games, and virtual worlds. He’s submitted several accepted emoji proposals to the Unicode Consortium.

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

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