Satya Nadella, the CEO of Microsoft, provided insights into the gaming business during the quarterly earnings call for Q1/2025.
The overall gaming business saw a 5% revenue growth, with software and services growing by 8%, while hardware revenue declined by 6%.
Microsoft is the leading game distributor measured by pre-orders and pre-install orders (likely referring to pre-orders for Indiana Jones on PS5 as a key example) on the PlayStation Store and Xbox Store in Q1.
Revenue from PC Game Pass grew by 45% in the past year.
There are a total of 500 million Monthly Active Users (MAU) across all Microsoft gaming platforms.
Xbox Play Anywhere allows players to buy a game once and play it on both Xbox and PC, with over 1,000 games available.
The success of the Minecraft movie led to a 75% increase in weekly player engagement compared to the previous year after its release.
Source: Microsoft, VGC
TLDR: Satya Nadella shared positive growth in Microsoft’s gaming business, with increased revenue, user engagement, and success in game distribution and services.
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