Microsoft Defends Xbox Strategy Amid Criticism Over Activision Acquisition

The company highlights record revenues and denies claims it considered shutting down its gaming division in 2021.

Microsoft reported record Xbox revenues of $21.52 billion for FY2024, with $7.42 billion attributed to Activision Blizzard's contribution.
The company denies a report suggesting CEO Satya Nadella considered shutting down the Xbox division in 2021, reaffirming its commitment to gaming.
Analysts and investors remain divided on the performance of Activision and the Xbox Game Pass model, with some citing disappointing returns and others optimistic about long-term growth.
Microsoft emphasizes that Activision accounted for over 85% of Xbox's quarterly revenue increases since the acquisition, while also noting new records for Game Pass subscriptions and user engagement.
Despite growth in revenues, some developers and industry observers express skepticism about Game Pass's profitability and its impact on premium game sales.