Not hard to do when the game is free

their current strategy makes no sense for the console market, whether people like it or not the console space was always driven by exclusives. I believe they will see an increase in revenue tho with all games going multiplat, but at what cost? I'd be surprised if their next console outsells the Wii U

What are their profit margins? Because whether you like it or not, that is their focus now.

We are focused on improving the profitability of the business in order to position it for long-term growth, driven by higher-margin content and platform services.

And we're delivering on this plan. Black Ops 6 was the top-selling game on Xbox and PlayStation this quarter, and saw more players in its launch quarter than any other paid release in the franchise's history.

And we saw rave reviews of Indiana Jones and the Great Circle, which has already been played by more than 4 million people.

We also continue to see strong momentum for Xbox Cloud Gaming, with a record 140 million hours streamed this quarter.

All-up, Game Pass set a new quarterly record for revenue and grew its peak PC subscriber base by over 30% as we focus on driving fully-paid subscribers across endpoints.

Revenue down 7% due to a drop in hardware but that was projected anyway.

"Gross margin increased $1.9 billion or 15% driven by growth in Gaming, including the impact of the Activision Blizzard acquisition. Gross margin percentage increased driven by sales mix shift to higher margin businesses and improvement in Search and news advertising and Gaming"

Gaming specifically is pointed out as leading to a gross margin profit increase in "More Personal Computing" It is what it is, they will be a lot more profitable going fully multiplatform, this is the quarter where Indiana Jones and Black Ops 6 released, one is exclusive and the other is multiplatform, if Black Ops 6 went exclusive their revenue would have plummeted by a lot more than 7%.

Good numbers despite all the dooming about Steam

Satya calling out Indiana Jones must mean they're happy with its performance.

Microsoft CFO Amy Hood says Windows OEM and devices will decline low to mid single digits in Q3 2025. Overall gaming revenue expected to grow in single digits, with Xbox content and services expected to grow low to mid single digits. Xbox hardware "will decline year over year"

— Tom Warren (@tomwarren.co.uk) 29 January 2025 at 23:03

Amy Hood said Xbox Content and Service growth of 2% was ahead of expectations due to stronger than expected performance from Blizzard and Activision, including COD

— John Welfare (@johnbp.bsky.social) 29 January 2025 at 22:56

Game Pass set a new quarterly record for revenue and grew its peak PC subscriber base by over 30%.

Satya specifically called out increasing profitability further, for specific videogames too, so expect a lot more ports to Switch/PS to be announced soon because that's how they're increasing their profitability. They're focused on profit margins now.

They also spoke about focusing on higher margins for Xbox hardware so they seem done with subsiding the console.

We also continue to see strong momentum for Xbox Cloud Gaming, with a record 140 million hours streamed this quarter.

Their TV xCloud push must be working somewhat. That's quite a lot of hours which should translate to a decent amount using xCloud.

They really need to get expanding xCloud's capability then.

PLaying NGII Black. What a great game!

7% down is just bad at that point you can only make excuses why it isn't that bad but people will only remember the 7%down maybe Mat Pricatella will say 'it is pretty good'....anyway at this point it is going to be interesting what the next quarters results will be...

Great to see we finally got the numbers for indiana .... 4 million players ....if it was 4 million sales you could atleast call it 'alrightish' knowing very well that it is still far away from a profit...    But damned it is players and that is low... 

Got my phone and a kindle and I got the Neptunia sister Vs sister game, not sure I will play it but I promised I will get it in a sale so..

Next gen Xbox hardware I would be fine with a less held back Series S2. Don’t bother with a Series X2. Build a Series Y handheld for the niche market. Keep focusing on Game Pass and make every single game multi-platform. Make a profit on hardware from the get go with an entry level price. Hell, a Series S2 could easily be half the price of the PS6, focus on AI tech so it’s not really held back to such an extent. Microsoft will never win the hardware business at this point, so it’s time to focus on sustainability. If that’s a universal development house and publisher that makes niche hardware for a core fan base at a profit, then it is what it is, it’s time to get over it.