Microsoft continues to concentrate on the cloud and integrating AI throughout Xbox amid information of recent console pricing adjustments, as proven within the firm‛s third quarter report for the 2025 fiscal 12 months, masking the interval ending March 31, 2025.
Clever cloud, which incorporates the cloud computing platform Azure, noticed $26.8 billion in income, totaling a 21 p.c enhance. For Azure and “different cloud providers,” the income development was 33 p.c, together with “16 factors from AI providers,” as defined by chief monetary officer Amy Hood throughout the convention name.
The entire determine towers over the $13.4 billion income of extra private computing, which incorporates video games and associated providers. For the online game enterprise particularly, income elevated 5 p.c and 6 p.c in fixed foreign money, with Xbox content material and providers seeing income development of 8 p.c and 9 p.c in fixed foreign money.
The corporate highlighted ending the quarter because the “prime writer by pre-orders and pre-installs” throughout Xbox and the PlayStation retailer, though it didn‛t share particular numbers. For Sport Move, income elevated over 45 p.c year-over-year on PC, and folks performed over 150 million hours utilizing cloud gaming.
Microsoft additionally devoted time to say the way it‛s “integrating AI throughout Xbox,” with examples together with a generative AI mannequin (meant to help sport builders) introduced in February, in addition to the AI-powered Copilot device (meant to help gamers). As with the preliminary announcement from a number of months again, the corporate didn‛t clarify precisely how every AI integration will manifest, nor the particular advantages or use circumstances for every.
A Minecraft Film additionally acquired a shout-out as a part of “monetizing our IP in new methods,” which grossed $550 million globally in underneath two weeks since its premiere. Microsoft additionally noticed a 75 percent-plus enhance in Minecraft weekly lively customers year-over-year for the reason that film’s launch in early April.
Earlier right this moment, the corporate introduced a rise in {hardware} costs—which incorporates consoles, controllers, and a few equipment—in addition to some first-party titles costing $80 beginning this vacation season. Trying again to earlier figures reveals that this transfer follows a Q2 decline in Xbox {hardware} gross sales, which itself continues an identical development from Q1.
Income after a 12 months of rampant layoffs and an lively boycott
All through 2024, extra builders underneath the Microsoft umbrella banded collectively amidst rampant layoffs. Each Microsoft and subsidiary Activision Blizzard have been accused of “unhealthy religion bargaining” by Raven Software program union employees, whereas Activision Blizzard high quality assurance employees rallied towards a mandate to return to workplace. Bethesda Sport Studios and World of Warcraft builders fashioned wall-to-wall unions, comprised of 241 and over 500 builders, respectively.
The unions got here collectively throughout a 12 months by which Microsoft laid off round 2,550 folks and shut down a handful of ZeniMax studios, together with Arkane Austin, Alpha Canine Video games, and Tango Gameworks.
“We proceed to rework the enterprise and concentrate on margin growth, as we convey our video games to over 500 million month-to-month lively customers throughout gadgets,” chairman and chief government officer Satya Nadella stated throughout the Q3 convention name.
Microsoft has, and continues to face, strain from the present state of worldwide occasions. Azure cloud and AI providers are two of the providers which have drawn the ire of the Palestinian-led Boycott, Divestment, and Sanctions (BDS) marketing campaign, the place Microsoft is among the foremost lively targets. Final week, Tenderfoot Techniques developer Badru pulled the title from Xbox platforms in solidarity with the marketing campaign. Microsoft workers additionally launched No Azure for Apartheid in 2024, pressuring the corporate to terminate all Azure contracts and partnerships with the Israeli navy and authorities.
To summarize, the corporate shared the next figures: $70.1 billion in income (up 13% year-on-year), composed of $29.9 billion throughout productiveness and enterprise processes, $26.8 billion in clever cloud, and $13.4 billion in additional private computing. The latter takes into consideration Home windows OEM pre-builds, utilization from a third-party partnership in search, and income throughout Xbox video games and providers.
