Xbox Reports Revenue Growth Following Activision Blizzard Acquisition
In a recent financial report, Microsoft has shared the results for the second quarter of fiscal year 2024, which bring mostly positive news for Xbox. In their first financial statement since the completion of the transaction in October, the tech giant revealed that game revenues have increased by 49 percent, thanks in part to the acquisition of Activision Blizzard, which was valued at $69 billion. During the financial results presentation, Microsoft unveiled that gaming efforts have been expanding as part of their overall personal computing strategy. Game revenues increased by 49%, with a significant portion attributed to the Activision Blizzard acquisition. Xbox software and services, including Game Pass, saw a 61% increase, with 55 net points coming from the Activision Blizzard acquisition. Xbox hardware sales also grew by 3% following a series of promotions and holiday price reductions.
The impact of the Activision Blizzard acquisition, one of the largest in the history of the gaming industry, is evident in Xbox’s report. Through Activision Blizzard, Xbox gained titles such as Call of Duty, World of Warcraft, and many other popular games, resulting in noticeable growth across almost every category. Xbox estimates that the total impact of the acquisition is approximately $2 billion, elevating the gaming industry above the Windows system as Microsoft’s third-largest business area.
Despite the positive news, it is a challenging time for Xbox and the entire industry. Last week, Microsoft announced layoffs within the Xbox division, leading to the cancellation of a game called Odyssey from Activision Blizzard, along with the release of the individuals working on it. Employees responsible for community, marketing, esports, and quality control at Activision Blizzard were also affected by the downsizing. Meanwhile, Microsoft became the second company to surpass a market value of $3 trillion.
Looking ahead to 2024, Xbox is focusing on potential opportunities for bringing some first-party games to other platforms, including the release of MachineGames’ Indiana Jones and the Great Circle, as well as Hellblade 2.
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