Console giant Xbox reports a poor showing in terms of hardware revenue, while faring very positively in its other business avenues.

Xbox hardware revenues increase after two consecutive quarters of low sales, yet console sales only represent less than 10% of total quarterly earnings.

This week, Microsoft held their webcast and pushed out a press release for Fiscal Year 2025 Q1, outlining an increase in revenue companywide by 16%/$65.6 billion USD. Primarily driven by Microsoft 365 Commercial products,

The Microsoft company posted its Q1 2025 earnings results this week, and with it came news about the company’s hardware section. Xbox hardware wasn’t a winner for the company this quarter though. It as down year-over-year by about 29 percent,