Microsoft has announced its financial results for the first quarter of fiscal year 2025 (July-September). Although hardware revenue for Microsoft’s gaming brand Xbox is decreasing, it has become clear that revenue for the gaming sector as a whole has increased significantly.
FY25 Q1 – Press Releases – Investor Relations – Microsoft
https://www.microsoft.com/en-us/Investor/earnings/FY-2025-Q1/press-release-webcast
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-September) of fiscal year 2025. During the same period, Microsoft’s total sales increased 16% year-on-year to $65.6 billion (approximately 10 trillion yen), operating income increased 14% year-on-year to $30.6 billion (approximately 4.7 trillion yen), and Profit was 24.7 billion dollars (approximately 3.79 trillion yen), an 11% increase compared to the same period last year.
Commenting on this quarter’s results, Microsoft CEO Satya Nadella said, “AI-driven transformation is changing jobs, work products, and workflows across every role, function, and business process. “We are expanding business opportunities and acquiring new customers by helping them adapt and drive new growth and operational leverage.”
Microsoft Chief Financial Officer Amy Hood said, “Microsoft Cloud revenue grew 22% year-over-year to $38.9 billion, driven by the strong execution power of Microsoft’s sales team and partners. “We were able to get the fiscal year off to a strong start,” highlighting the strong performance of Microsoft Cloud.
Microsoft 365 products for businessand Cloud Services revenue overall increased 13% year-over-year as Microsoft 365 Cloud for Business revenue increased 15% year-over-year.
Microsoft 365 Consumer Products and Cloud Services revenue increased 5% year-over-year, as Microsoft 365 Consumer Cloud revenue increased 6% year-over-year.
In addition, revenue from LinkedIn, a business SNS owned by Microsoft, increased by 10% compared to the same period last year. Revenue from Microsoft’s Dynamics business applications and platform product and cloud services increased 14% year-over-year, driven by Dynamics 365 revenue growth of 18% year-over-year.
Furthermore, revenue in the intelligent cloud field increased by 20% year on year to $24.1 billion (approximately 3.7 trillion yen). Server products and cloud services revenue overall increased 23% year-over-year, with Azure and other cloud services revenue increasing 33% year-over-year.
More Personal Computing division’s revenue was $13.2 billion (approximately 2 trillion yen), an increase of 17% compared to the same period last year. Windows OEM and device revenue increased 2% year over year. Xbox content and services revenue increased 61% year-over-year due to the Activision acquisition. However, hardware revenue for Xbox Content and Services was down 29% year over year. Furthermore, search and news advertising revenue excluding traffic acquisition costs increased by 18% compared to the same period last year.
Microsoft has increased the prices of multiple plans for its game subscription service Xbox Game Pass this quarter.
Three plans have increased in price for the unlimited game play subscription Xbox Game Pass & Xbox Game Pass for console has been discontinued and a new standard plan has been introduced – GIGAZINE
Activision, a subsidiary of Microsoft, will release the long-awaited latest installment of the Call of Duty series at the end of October 2024.Call of Duty: Black Ops 6has been released. Call of Duty: Black Ops 6 is also included in Xbox Game Pass, but since it was released in the second quarter of fiscal 2025, its impact is not included in this quarter’s results. .
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