A Record-Breaking Quarter for Xbox with the Help of Activision
Xbox, Microsoft’s gaming brand, has achieved record-breaking revenues of $7.111 billion during the summer of 2023, thanks to the assistance of Activision. According to the latest quarterly report for the second quarter of the year, Microsoft set a new revenue record of $7.111 billion with the help of Activision. If we exclude the revenues related to Activision, Xbox would have earned $5.031 billion in the quarter, placing it in third place in terms of holiday season revenues after 2020 and 2021.
This represents an 11.4% increase compared to the previous year, equivalent to $273 million in April 2023, when Xbox recorded revenues of $4.758 billion. It is worth noting that Activision’s share in the company’s results accounts for just over 29% of Xbox’s overall revenues from October to December 2023.
Unfortunately, following the merger, Microsoft no longer provides detailed revenue data for Activision in terms of different segments. This means that we have no way of accurately determining how individual games or services perform. Prior to the merger, Activision provided investors with a lot of information on the revenues from the sales of specific segments such as Activision, Blizzard, and King, as well as data on monthly active users (MAU) and other important metrics.
The merger of the two companies involves eliminating some revenues, cost-saving synergies, and other long-term adjustments. Therefore, comparing periods prior to the merger is challenging for both Microsoft and Activision. It should be noted that Xbox does not have a reference point for comparing periods in which Activision did not exist, especially in the context of Microsoft’s accounting practices.
The conclusion is that the merger of Activision with Xbox has resulted in record revenues, but it makes it difficult to analyze the results in relation to previous periods. Will this change bring other benefits in the future? Only time will tell.
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The source of the article is from the blog girabetim.com.br