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

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Image: The Verge

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’s Q1 2025 earnings are in, and the results show that

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’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 is driven by “53 points of net impact from the Activision acquisition,” according to

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. But hardware revenues again declined, down 29 percent this quarter, which may be influenced by

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’s continued strategy to make its games available

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.

During the quarter,

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introduced its new Xbox Game Pass “Standard” tier and a

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for Xbox Game Pass Ultimate. Q1 also saw the arrival of Call...

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