Particle.news

Download on the App Store

Microsoft's Gaming Revenue Soars by 43% Amid Activision Acquisition Impact

Despite declining Xbox hardware sales, Microsoft's Game Pass and content services see record growth driven by Activision Blizzard's contribution.

An image about Xbox console sales down 30%, hardware only represents 9% of Microsoft's gaming revenue
Image
Image
Xbox logo on a dark background

Overview

  • Microsoft's Q1 fiscal report highlights a 61% increase in Xbox content and services revenue, largely due to the Activision Blizzard acquisition.
  • Call of Duty: Black Ops 6 set launch records, significantly boosting Game Pass subscriptions and overall game revenue.
  • Xbox hardware sales have decreased by 29% year-over-year, contributing only 9% to Microsoft's gaming revenue.
  • Activision Blizzard generated $1.69 billion in revenue for Microsoft in Q1, despite ongoing integration costs.
  • Microsoft anticipates a decline in gaming revenue for Q2, primarily due to continued hardware sales challenges.