Microsoft (MSFT) says Xbox content and services revenue grew 61% in Q1 FY2025

Microsoft claims the Activision Blizzard acquisition played a major part in its content and services revenue increase.

Image via Microsoft
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This week, the Microsoft company announced its Q1 2025 earnings results, and with it came news on how the company’s Xbox software and subscription services are doing. The Xbox content and services segment was said to have grown by 61 percent year-over-year, and Microsoft went on to claim that Activision Blizzard played a major role in that increase.

Microsoft posted its Q1 2025 earnings results on its investor relations website this week. In the earnings results, Microsoft posted a revenue of $65.6 billion for the quarter, handily beating Wall Street expectations on the quarter. Contributing to that was Xbox content and services. While Microsoft didn’t say exactly what kind of revenue this line item brought in, the company did share that it was up substantially from year-to-year, having increased by 61 percent from Q1 2024.

Microsoft (MSFT) stock chart as of October 30, 2024 in after-hours trading
Microsoft (MSFT) stock bounced about in after-hours trading on the back of its Q1 2025 earnings results.

Without knowing the exact number on Xbox content and services revenue, the 61 percent growth still sounds like a solid win for the segment. Microsoft would go on to say that its acquisition of Activision Blizzard was a major contributor to that boost. Activision Blizzard has continued to maintain games like Diablo and World of Warcraft while also launching Call of Duty: Black Ops 6. With those games continuing to rake in money for the group, it seems like it’s finally an investment paying dividends for Microsoft.

It's worth noting that Black Ops 6 launched late enough to miss being involved in this quarter’s numbers. With that in mind, Xbox content and services will be interesting to watch in the quarters ahead.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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