Xbox Sales See Massive Increase After Obtaining Activision Blizzard
Xbox sales have reached massive heights and show no signs of slowing down. Microsoft’s colossal $75 billion acquisition of Activision Blizzard is proving to be a game-changer for the tech giant.
In its first earnings report since finalizing the acquisition in October 2023, Microsoft disclosed a substantial boost in Xbox content and services revenue, experiencing a staggering 61% increase. This surge encompasses earnings from Xbox Game Pass and the newly integrated Activision Blizzard portfolio. The overall gaming revenue reached an impressive $7.11 billion, marking a significant uptick from the previous year’s $5.26 billion.
The net impact of the Activision Blizzard deal on Microsoft’s revenue was an impressive $2.08 billion, with additional costs related to the buyout totalling $930 million. Despite the operating loss of $440 million incurred during the quarter, the strategic move has contributed to gaming becoming Microsoft’s third-largest business category.
Even with a 3% rise in Xbox hardware revenue during the holiday quarter, Microsoft’s CFO, Amy Hood, acknowledged that the console market was “weaker than expected.” Nevertheless, the gaming division has firmly secured its place as a major revenue contributor, outperforming the Windows division’s revenue of $5.26 billion.
With gaming emerging as Microsoft’s third-highest revenue-generating category, boasting $7.11 billion, the company’s overall earnings for the last three months reached an impressive $62 billion, with a profit of $21.9 billion. As Microsoft becomes a trillion-dollar company, the impact of the Activision Blizzard acquisition on its financial standing is undeniable.