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Thursday, September 18, 2025

Xbox Sales Surge As Microsoft Posts $41.7B Quarter

  • Xbox was the top selling console series in March and the first quarter.
  • Microsoft earned $41.7 billion in Q1 revenue.
Microsoft
Xbox

Microsoft’s acquisition of Activision Blizzard is not expected to close until 2023, but its gaming division is already seeing excellent results.

Xbox had its best sales month ever in March, topping its previous record from March 2014.

  • Hardware sales reached $515 million in March and $1.2 billion in the first quarter, with the Xbox Series leading in both timeframes.
  • Nintendo was the leader in total consoles sold. 
  • Supply chain issues were a factor for Sony’s PlayStation, which struggled to meet demand.

Microsoft’s $75 billion acquisition of Activision Blizzard has a number of hurdles to clear. The deal is receiving regulatory scrutiny and is complicated by the gaming giant’s legal challenges. 

Earlier this month, two prominent California government lawyers resigned in protest, saying that Gov. Gavin Newsom meddled in the case in Activision’s favor.

Big Quarter

Microsoft posted $41.7 billion in revenue in the first quarter of the year, up 18% year-over-year, led by 46% growth in cloud service revenue. 

Xbox content and services revenue rose 4% year-over-year, helping the company’s More Personal Computing segment collect $14.5 billion in the quarter.

Microsoft is hiring a manager to evaluate potential gaming acquisitions, leading to speculation that the company is looking to grow its gaming portfolio.

Microsoft beat earnings expectations, and its stock rose around 2% in after-hours trading on Tuesday.

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