Microsoft reports Q1 gaming revenue down 2% YoY to $5.51B, Xbox hardware revenue down 29%, and Xbox content and services revenue up 1% (Jennifer Maas/Variety)

TechmemeWednesday, October 29, 2025 at 10:35:01 PM
Microsoft reports Q1 gaming revenue down 2% YoY to $5.51B, Xbox hardware revenue down 29%, and Xbox content and services revenue up 1% (Jennifer Maas/Variety)
Microsoft's latest report reveals a 2% decline in gaming revenue year-over-year, totaling $5.51 billion. The drop in Xbox hardware revenue by 29% raises concerns, although Xbox content and services saw a slight increase of 1%. This matters because it highlights the challenges Microsoft faces in the competitive gaming market, especially with hardware sales struggling while digital services show modest growth.
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