Microsoft has released its financial results for the second quarter of the fiscal year 2024, and the figures for Xbox are highly promising. This marks the first earnings report since the completion of the $69 billion acquisition of Activision Blizzard, with gaming revenue surging by 49 percent. During an earnings call, Microsoft disclosed that gaming performance had exceeded its core computing segment. The growth in gaming revenue was mainly attributed to the acquisition of Activision Blizzard, accounting for “44 percentage points.” Additionally, Xbox content and services, encompassing Game Pass, saw a 61% increase, with 55 points attributed to Activision Blizzard. Xbox hardware revenue also experienced a 3% growth due to discounts and holiday promotions. The impact of the Activision Blizzard deal, one of the largest in gaming history, is evident in the Xbox report. The acquisition has bolstered Xbox with popular titles such as Call of Duty and World of Warcraft, leading to significant growth across various categories. According to Xbox estimates, the total effect of the acquisition amounts to approximately $2 billion, propelling gaming ahead of Windows to become Microsoft’s third-largest business. Overall, Microsoft achieved a total revenue of $62 billion, marking an 18% increase driven by its Office and cloud business. All Video Games Franchises Xbox Has After Acquiring Activision BlizzardHowever, this news comes at a challenging time for Xbox and the industry as a whole. Recently, Microsoft announced layoffs affecting its Xbox division, resulting in 1,900 job cuts. Consequently, the development of Activision Blizzard’s survival game, Odyssey, was halted, and the team working on the project was disbanded. Employees from various divisions including community, marketing, esports, and QA at Activision Blizzard were significantly affected by the downsizing. Meanwhile, Microsoft has become the second company to achieve a market value of $3 trillion. Looking ahead to 2024 amidst rumors of potentially expanding its first-party games to another platform, Xbox plans to release MachineGames’ Indiana Jones and the Great Circle and Hellblade. 2. Taylor is a Journalist at IGN. You can follow him on Twitter @TayNixster.
The impact of the Activision Blizzard deal, one of the largest in gaming history, is evident in the Xbox report. The acquisition has bolstered Xbox with popular titles such as Call of Duty and World of Warcraft, leading to significant growth across various categories. According to Xbox estimates, the total effect of the acquisition amounts to approximately $2 billion, propelling gaming ahead of Windows to become Microsoft’s third-largest business. Overall, Microsoft achieved a total revenue of $62 billion, marking an 18% increase driven by its Office and cloud business. All Video Games Franchises Xbox Has After Acquiring Activision Blizzard
However, this news comes at a challenging time for Xbox and the industry as a whole. Recently, Microsoft announced layoffs affecting its Xbox division, resulting in 1,900 job cuts. Consequently, the development of Activision Blizzard’s survival game, Odyssey, was halted, and the team working on the project was disbanded. Employees from various divisions including community, marketing, esports, and QA at Activision Blizzard were significantly affected by the downsizing. Meanwhile, Microsoft has become the second company to achieve a market value of $3 trillion. Looking ahead to 2024 amidst rumors of potentially expanding its first-party games to another platform, Xbox plans to release MachineGames’ Indiana Jones and the Great Circle and Hellblade. 2. Taylor is a Journalist at IGN. You can follow him on Twitter @TayNixster.
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