Microsoft Reports Strong Revenue Growth Following Activision Blizzard Acquisition
Microsoft has recently shared its financial results for the second quarter of 2024, and as expected, it brings good news for Xbox. In its financial report, the tech giant revealed that game sales revenue increased by 49%, partly due to the acquisition of Activision Blizzard for $69 billion. According to Microsoft’s presentation, gaming industry revenues saw a 49% growth, with “44 net impact points” attributed to the Activision Blizzard acquisition. Additionally, Xbox’s content and services revenue, including Game Pass, grew by 61%, of which 55 net impact points came from the Activision Blizzard acquisition. Hardware sales revenue for Xbox also increased by 3% thanks to holiday discounts and promotions.
The impact of the Activision Blizzard acquisition, one of the largest in the history of the gaming industry, is clearly visible in Xbox’s report. Activision Blizzard brings with it titles such as Call of Duty, World of Warcraft, and many other popular games, which contributed to significant growth in almost every category for Xbox. Xbox estimates that the overall impact of the acquisition is worth around $2 billion, allowing the gaming industry to surpass Windows and become Microsoft’s third-largest division.
However, these positive developments come at a challenging time for Xbox and the entire industry. Just last week, Microsoft announced layoffs in its Xbox division, affecting 1,900 employees. As a result of the layoffs, the game Odyssey from Activision Blizzard was canceled, leading to job losses for the employees working on that project. Employees in Activision Blizzard’s community, marketing, esports, and quality control departments were also disproportionately affected by these layoffs. In the meantime, Microsoft became the second company to achieve a market value exceeding $3 trillion.
Looking ahead to 2024, Xbox is also rumored to be considering bringing some first-party games to other platforms, including MachineGames’ Indiana Jones and the Great Circle and Hellblade 2.
FAQ
The source of the article is from the blog portaldoriograndense.com