Particle.news
Download on the App Store
12 ARTICLES
·
last yr.

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 $2bn Xbox revenue surge after Activision Blizzard acquisition
Image
Microsoft's gaming revenues skyrocket by billions of dollars as Xbox starts to recognize Activision Blizzard King's quarterly earnings contributions.
Image

Overview

  • 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.