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Xbox hardware revenue declined 29% during Microsoft's (MSFT) Q1 FY2025

While content and services increased, hardware didn't fare quite as well for Microsoft.

TJ Denzer

October 30, 2024 3:55 PM

Image via Xbox

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The Microsoft company posted its Q1 2025 earnings results this week, and with it came news about the company’s hardware section. Xbox hardware wasn’t a winner for the company this quarter though. It as down year-over-year by about 29 percent, acting as a small blemish among the company’s otherwise strong quarter.

Microsoft put out its Q1 2025 earnings results on its investor relations website this week. Therein, the company shared its Xbox hardware metric, notably sharing that it was down in sales 29 percent from Q1 2024.

While the Xbox Series X and S have continued to compete with the PlayStation 5, we’re still not seeing as many exclusives on Xbox as other places, and this far into the console cycle, it also appears that Microsoft has put its priorities elsewhere, such as Xbox services, which boasted a 61 percent increase year-over-year. This and Microsoft’s cloud service improvements helped the company along to beats on earnings-per-share and revenue for Q1 2025.

Microsoft has remained dedicated to ensuring it has a competing console on the market and even announced new versions of the Xbox Series. It will be interesting to see if the company continues to remain heavily invested in the console market with all of its other irons in the fire. Stay tuned for updates here at Shacknews.

TJ Denzer

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.