Danish Kapoor
Danish Kapoor

Microsoft’s game revenues increased by almost 50 percent thanks to Activision

Microsoft shared its financial report for the second quarter of fiscal year 2024. The company completed this period with a revenue of 62 billion dollars and a profit of 21.9 billion dollars. This shows that revenues increased by 18 percent and profits increased by 33 percent compared to last year.

What makes the financial report really important is that it shows the impact of the acquisition of Activision Blizzard on the balance sheets. Although the software giant did not share the figures in detail, it was stated that total game revenue increased by 49 percent compared to a year ago, and 44 points of this was the “net effect” of the Activision agreement.

The revenues of the company’s “More Computing” unit, which includes Xbox, Surface and Windows, increased by 19 percent compared to a year ago and reached 16.9 billion dollars. According to the information provided, the impact of the Activision agreement on this increase was 15 points.

Microsoft weakened the impact of the decline in PC sales thanks to Activision

It should be noted that this is a very significant change for the unit, which has been affected by falling PC sales and fluctuating Xbox sales. During this period, PC revenues decreased by 9 percent, while Xbox hardware revenues increased by 3 percent.

Xbox content and service revenues also increased by 61 percent compared to last year. 55 points of this increase came thanks to Activision. It is wondered whether Microsoft will be able to reflect this effect on Xbox sales or at least on Game Pass subscriptions.

Danish Kapoor