Microsoft’s Gaming Revenues Soar After Activision Blizzard Acquisition
In a recent report on Microsoft’s financial results, significant growth in gaming revenues has been attributed to the acquisition of Activision Blizzard. The tech giant’s overall revenues saw an impressive 17% increase, reaching $61.9 billion, with Microsoft Cloud revenues also rising by 23% to $35.1 billion.
However, despite the overall positive growth, Xbox hardware sales experienced their steepest decline since the launch of the Xbox Series X and S in 2020, dropping by 31% year-on-year. On the other hand, gaming revenue saw a remarkable 51% increase, with Xbox content and services revenue up by 62%.
The success in gaming revenue has been credited to popular Activision titles like Call of Duty: Modern Warfare 3 and Diablo 4, which played a crucial role in driving the growth. Microsoft also saw new records for game streaming hours, console usage, and monthly active devices in the past quarter.
CEO Satya Nadella highlighted the benefits of releasing Microsoft-owned titles on other platforms, such as PlayStation 5 and Nintendo Switch, to expand their reach and audience. However, operating costs for the More Personal Computing division, which includes Xbox, rose by 41% primarily due to the acquisition of Activision.
Looking ahead, Microsoft expects Xbox content and services revenue to grow by more than 50% in the next quarter, although hardware revenues are expected to decline once again. Despite the challenges in hardware sales, the company remains optimistic about the future of its gaming division and the continued success of its gaming offerings. Stay tuned for more updates on Microsoft’s gaming ventures.