It's been a bit of a wild start to the year for Xbox with a Developer Direct, mass layoffs, some record-breaking milestones, and now the latest earnings report for the second quarter of the current fiscal year.
The big news on the gaming front is business is booming now that Microsoft is factoring in Activision Blizzard earnings. While we got some data earlier today revealing Xbox has had a 49% boost from this acquisition, it's also raised gaming to new heights within Microsoft.
As highlighted by The Verge's senior editor Tom Warren, gaming is now officially Microsoft's "third largest business" this quarter, putting it above Windows. While Windows made $5.26 billion, gaming contributed to $7.11 billion, with the company earning $62 billion overall.
Microsoft's top two earners are Office and its cloud services, contributing to "nearly 60 percent" of the company's overall revenue. Microsoft CEO Satya Nadella has also chimed in on the latest quarter for its gaming division, highlighting some records and the increase in game streaming. Here's what he had to say:
Satya Nadella: "This quarter we set all-time records for monthly active users of Xbox, PC, as well as mobile where we now have 200 million monthly active users, inclusive of Activision Blizzard King. With cloud gaming we continue to innovate to offer players more ways to experience the games they love... hours streamed increased 44 percent year over year."
You can learn more about Microsoft's latest quarter in the following story here on Pure Xbox:
Have you been supporting Microsoft's Xbox and gaming division in recent times? Let us know in the comments.
[source theverge.com]
Comments 8
62 billion in one quarter. 3 months. Good god.
This is why I have been saying for a while "console sales" aren't an accurate metric of success anymore. In fact Microsoft + ABK made more revenue than Sony in both FY2022 and FY2023. They are second only behind Tencent in revenue right now. Will be interesting to see how this changes now that ABK is acquired.
Though also worth noting this is just revenue. They made a $440 million operating LOSS. (that doesn't include $70bn ABK spend)
So spending money makes profits. I would argue and hasn’t exactly earned the money , rather that Acti/Blizzard earned it.
But this is why they did it.
@Kaloudz yes good times ahead for us suits at the round table dividing our profits! see ya at the office tomorrow buddy, it’s gonna be a great day!
kidding
Microsoft was always playing 4D chess with this.
Congratulations to them.
I think you are missing the point, @CharlieChooChoo; Microsoft is a business, they exist only to make a profit. If buying up existing companies to add to their portfolio is what it takes to make that profit, then that is what they (and all top-tier companies) will do. Microsoft are simply looking at what investments will give them the biggest returns, and ABK was one such acquisition. Buying ABK was quite literally about Microsoft getting to the (profit) finishing line...
@CharlieChooChoo Activision and Blizzard both have a very long history of making games for Microsoft Windows. Far longer than they ever had making games for PlayStation.
@CharlieChooChoo Kind of like relationship between MS and Bethesda/Zenimax.
Leave A Comment
Hold on there, you need to login to post a comment...