Microsoft announces financial results for the first quarter of 2025, with game hardware sales declining but overall gaming revenue increasing
Microsoft has announced its financial results for the first quarter (July to September) of fiscal year 2025. Although hardware revenue for Xbox, Microsoft's gaming brand, has declined, it has become clear that revenue for the gaming division as a whole has increased significantly.
FY25 Q1 - Press Releases - Investor Relations - Microsoft
Microsoft Q1 2025 - The Verge
https://www.theverge.com/2024/10/30/24283812/microsoft-q1-2025-earnings-revenue-profits-windows-xbox-gaming-surface
On October 30, 2024 local time, Microsoft announced its financial results for the first quarter (July to September) of fiscal year 2025. Microsoft's total sales for the same period increased 16% year-on-year to $65.6 billion (approximately 10 trillion yen), operating profit increased 14% year-on-year to $30.6 billion (approximately 4.7 trillion yen), and net profit increased 11% year-on-year to $24.7 billion (approximately 3.79 trillion yen).
Commenting on the company's performance for the quarter, Microsoft CEO Satya Nadella said, 'AI-driven transformation is transforming work, work products and workflows across every role, function and business process. We are helping customers apply our AI platform and tools to drive new growth and operational leverage, expanding business opportunities and winning new customers.'
'Microsoft Cloud revenue grew 22% year over year to $38.9 billion, driven by strong execution from our sales teams and partners, helping us get off to a strong start to the fiscal year,' said Amy Hood, Microsoft's chief financial officer, highlighting the strength of Microsoft Cloud.
Microsoft 365 consumer products and cloud services revenues increased 5% year over year overall, driven by Microsoft 365 consumer cloud revenues growing 6% year over year.
In addition, revenue from LinkedIn, a business social networking site under Microsoft, increased 10% year-on-year. Microsoft's business application and platform products, Dynamics and cloud services revenue, increased 14% year-on-year overall, driven by an 18% increase in Dynamics 365 revenue year-on-year.
In addition, Intelligent Cloud revenues increased 20% year over year to $24.1 billion (approximately 3.7 trillion yen). Server products and cloud services revenues increased 23% year over year, driven by a 33% increase in Azure and other cloud services revenues.
More Personal Computing revenues increased 17% year-on-year to $13.2 billion. Windows OEM and device revenues increased 2% year-on-year. Xbox content and services revenues increased 61% year-on-year due to the acquisition of Activision. However, hardware revenues from Xbox content and services decreased 29% year-on-year. Search and news advertising revenues, excluding traffic acquisition costs, increased 18% year-on-year.
Microsoft increased the prices of several plans for its game subscription service, Xbox Game Pass, this quarter.
Xbox Game Pass, an all-you-can-play subscription service, raises prices for three plans & Xbox Game Pass for consoles is discontinued, new standard plan appears - GIGAZINE
Activision, a subsidiary of Microsoft, released Call of Duty: Black Ops 6, the long-awaited latest installment in the Call of Duty series, at the end of October 2024. Call of Duty: Black Ops 6 is also included in Xbox Game Pass, but since the game was released in the second quarter of fiscal year 2025, its impact will not be included in this quarter's financial results.
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in Software, Web Service, Hardware, Game, Posted by logu_ii