Microsoft’s Impressive Revenue Surge After Activision Blizzard Acquisition

Microsoft has revealed a significant increase in gaming revenue, following its acquisition of Activision Blizzard. The latest financial results from the second quarter of the 2024 fiscal year show an estimated 49% rise in gaming revenue, attributed to the $69 billion acquisition.

The content related to Xbox consoles played a major role in driving Microsoft’s increasing revenue. Services like Game Pass and others witnessed a growth of 61%. Moreover, the sales of Xbox consoles themselves grew by 3%, which is no surprise considering the holiday season and the popularity of Xbox Series X/S.

Microsoft has Activision Blizzard to thank for these successes, as the acquisition brought bestsellers like Call of Duty, World of Warcraft, and Overwatch under its portfolio. It’s worth noting that this merger has already been estimated to be worth around $2 billion, making Xbox’s gaming business more profitable than its Windows division.

However, these achievements came at the expense of employee layoffs. Earlier this week, Microsoft let go of 1,900 employees from their Xbox team. As a result, the development of the survival game Odyssey was eventually canceled, and employees from Blizzard’s community, marketing, esports, and quality control departments were also affected by the job cuts.

In related news, rumors have been circulating that PlayStation may be planning its own acquisitions, as reported in October 2023. If this turns out to be true, companies like Take-Two, EA, and Square Enix could become potential targets. Whether these plans materialize in the coming year remains to be seen.

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