and revenues are slowly declining.
The company states that the Xbox Microsoft revenue for content and services has recorded a growth of 61% year over year from the previous quarter. According to the Microsoft press release, these earnings are probably driven by the 53 points of net impact earned from the acquisition of Activision.
However, it should be noted that the hardware sales and Xbox Microsoft revenues declined again by almost 29% during his quarter and recorded a decline in hardware sales. This situation might be affected by Microsoft's strategy to offer their games more widely than just for Xbox consoles.
In this quarter, Microsoft announced a new Xbox Game Pass “Standard” model and a new pricing list for the Xbox Microsoft Gaming Pass Ultimate. The first quarter of 2024 has the launching of the Call of Duty Modern Warfare III on the Xbox Microsoft Gaming Pass, but the downside here is that in the current quarter the new Call of Duty: Black Ops 6 that was launched recently is not included. According to Microsoft CEO Satya Nadella, this release was the Biggest Call of Duty launch ever.
Also, the new Intelligent Cloud division represents a positive aspect because the total revenues increased by 20% yearly up to $24.1 billion determined by Azure. Azure company and other services revenues increased by about 33% and 12 points from the demand for AI technologies and services.
Microsoft is more focused now on investing more in the features powered by artificial intelligence and, more importantly, improving the functionalities of its Copilot AI technology.
“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process. We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”, Microsoft CEO Satya Nadella said in a statement.
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