Xbox first-party content partially offsets 2% drop in Q1 revenue, hardware decreases 14%

Microsoft has exceeded first quarter expectations, reporting $92.3 billion in revenue with increases in net income and earnings per share. Devices and consumer revenue declined 3% to $15.5 billion. Xbox content and services revenue decreased 2%, primarily due to lower third-party content and Game Pass performance. Xbox content and services revenue was partially offset by growth in first-party content, while Minecraft experienced "all-time highs in both engagement and revenue." Cost of revenue for the devices and consumer segment fell 8%, driven by "lower amortisation of intangible assets from the Activision acquisition" and a 14% decrease in hardware revenue.