Microsoft's Gaming Revenue Surpasses Windows for the First Time

Activision Blizzard's Acquisition Contributes Significantly to the Surge, Despite Recent Layoffs in the Gaming Division

Microsoft's gaming division, including the newly acquired Activision Blizzard, has surpassed Windows in terms of revenue for the first time, making $7.1 billion in the second quarter of the 2024 fiscal year.
Activision Blizzard, acquired for $69 billion, contributed more than $2 billion to the gaming revenue.
Despite the revenue surge, Windows still holds a profit advantage over gaming, with Activision contributing a modest $11 million profit after accounting for transition costs.
Microsoft's overall revenue for the quarter was $62 billion, with gaming now becoming the company's third-largest business, trailing behind Office and cloud services.
Microsoft recently made headlines for purging thousands of employees from its gaming divisions, specifically Activision Blizzard.