- Xbox has reported stellar results for its first quarter after merging with Activision Blizzard.
- The publisher contributed around $2 billion in revenue to Xbox.
- Overall revenue grew by 49%.
Xbox completed a nearly $70 billion transaction late last year, merging with Activision Blizzard. Following this historic acquisition, Xbox’s first quarterly financial earnings report of 2024 was expected to show incredible results.
As expected, the presence of Activision Blizzard has already begun to make a difference. According to the report, Xbox revenue grew by 49% in Q2 FY24.
Why it matters: Microsoft’s purchase was a long-term investment. At this rate, the gaming giant will continue to set new records each quarter, likely recouping the cost through annual releases like Call of Duty.
Microsoft FY24 Q2 Earnings
– Xbox Gaming Revenue +49% YoY
– 44% net impact from Activisiom Blizzard
– Content & Services +61% YoY
– 55% net impact from Activision Blizzard
– Xbox hardware +3% YoY
– $2.08B revenue from Activision Blizzard
– Gaming Quarterly Revenue ~$7.1B (!) pic.twitter.com/ShmxDtwRxn— MauroNL (@MauroNL3) January 30, 2024
Microsoft’s report confirms Activision Blizzard brought in $2.08 billion in revenue last quarter. Therefore, it is safe to say Xbox’s strong results can be credited to the presence of this publisher.
For reference, the gaming giant reported a 9% growth in revenue for FY24 Q1. Introducing the publisher with rights to IPs like Diablo and Call of Duty to the mix instantly led to a huge boost in this figure.
Still, hardware figures were not as impressive for Xbox. Despite incredible deals over the holiday season, which saw the Series X selling for as low as $350, hardware revenue only grew by 3% year-on-year.
Overall, Microsoft reported a gaming revenue of $7.1 billion.
Amidst this encouraging news, the gaming division recently laid off 1,900 employees. This included many from Activision Blizzard studios, leading to a disappointing atmosphere in Microsoft’s gaming division.
However, many are hopeful this will be the last of Xbox’s layoffs. The gaming giant has the opportunity to finally bounce back after facing a difficult time competing with everyone else for nearly two generations.
Many also want to see Xbox using its new acquisition to greenlight classic IPs from Activision. Through such measures, Microsoft should be able to maintain similar gaming revenue figures each quarter.
Featured Image Credit: OvoGmaing
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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