Microsoft has just released its earning results for FY24 Q2 and Xbox's gaming revenue has experienced huge growth in the latest quarter, up by 49% year-over-year.
This growth is credited mostly to Microsoft securing Activision Blizzard, which closed last year on October 13, 2023. This latest figure factors in 44 points of net impact from the Activision acquisition.
Moving onto Xbox's content and services revenue - this sector has also received a massive boost, with revenue 61% year-over-year (including 55 points of net impact from the Activision acquisition) and hardware revenue has grown by 3%. It's also been highlighted how Microsoft's gaming is now its "third largest business" in this latest quarter, placing it ahead of Windows.
Microsoft, in general, had 62% growth in FY24 Q2, which is an 18% increase year-over-year. Just last week, Microsoft also reached a $3 trillion market cap for the first time in its history and was the second company to achieve this after Apple.
In the same week though, Microsoft has also cut 1,900 jobs across Xbox, Bethesda and Activision Blizzard teams - calling it a "painful decision" but a necessary one, so the leadership can "align on a strategy and an execution plan with a sustainable cost structure" that will support the "whole" of the growing business.
In terms of what's ahead for Xbox this year, at its recent Developer Direct showcase, it confirmed Avowed, Senua's Saga: Hellblade 2 and Indiana Jones and the Great Circle would all be coming to Xbox Series X|S and Game Pass this year.
New first-party titles joining Xbox and boosting its revenue now include series like Call of Duty, Diablo, World of Warcraft and Crash Bandicoot. The mobile developer King - known for series like Candy Crush, is also included in this growth.
What are your thoughts about the latest results? Looking forward to the year ahead for Xbox? Leave a comment below.
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[source microsoft.com]
Comments 29
Do 1900 salaries count towards that? 🤔
Call of Duty microtransactions are a hell of a drug.
Let me find my surprised face.
@InterceptorAlpha i can attest to that. i blame my bank for allowing me to buy lootboxes in black ops 3 back in the day , i still want my refund
Those are some impressive numbers. Seems like there’s always so much negativity aimed at them, nice to see something positive. Maybe it’ll calm the claim of “Xbox going third party down” at least for a little while.
By the end of 2024 Microsoft will be the largest video game company by volume (not counting Tencent) and the ABK acquisition will have paid off. Last year they said they had 120 million monthly active users and I'm willing to bet they'll be at 150-160 million monthly active users by the holiday season.
Still can't believe that sony convinced some regulators and politicians that it would make sense for xbox to make COD exclusive.
@Odium this is business its hard but cut offs always happens...what really concerne me is the rumors saying the hole xbox physical release division is closed....xbox is about to make a push to all digital and i don't like that
We supported this and have yet to get anything out of it.
Next time MS wants to buy out a company I won't be so excited about it.
@Fishticon I expect a massive XGP drop coming in the next few months. Microsoft themselves said that we're not going to get an influx of ABK content straight after acquisition, partially since Microsoft put planning that aside while dealing with umpteen regulatory hurdles.
Yes, they dismissed a few people. Likely WB Discovery did the same thing. Course, I don't see Microsoft asking ABK to cancel all their upcoming games and then wondering why they're not making anything off them.
Just waiting for the ABK catalog to start dropping on Game Pass. They have quite a few games that I want to play. Diablo IV would make me very happy.
What was the natural growth without this acquisition? Boosting revenue increase due to acquisition is not really impressive without knowing natural growth…
@Fishticon it only just got the damn thing
@Odium They actually posted a $440 million operating LOSS, this is only revenue.
@TakeItEasy sadly, I don’t disagree with you. I’ve been impacted by layoffs before and it’s just the awful side of business, but I get it.
I don’t blame you, while it doesn’t personally impact me, because I’ve mostly made the switch to digital, I can’t blame anyone that is still collecting physical media and the fears about where this is headed. Unfortunately, MS has been heading in this direction for quite a while now. The only reason I made the switch to digital is just for the convenience of not having to find space for all of my games, I probably have a few hundred physical games still, and I’ve more than double it on digital, my wife would kill me if I had to find space for all of it. 😂
@Odium i lost my email amd along it my xbox library (my foreign numbre i used to use is not working and my backup email is also blocked for same reason (thats stupid)
So i cant get back my email that i created on 2006 and along it all my games cloud and some documents.....
Now i understand why people say you dont really own your digital games
@TakeItEasy sorry to hear that! That would absolutely be enough for me to convert back to physical media. I got mad enough when I hit a game breaking bug right before the Joker fight in Arkham Asylum and I had 100% Riddler trophies but my save deleted. I still haven’t played it again, I can only imagine how you felt losing all of your digital library.
@themightyant I know the job cuts aren’t related to this article, I just saw an opportunity to be snarky and had to take it. It’s a problem, I’m seeking help for it … Okay, I’m not, but I’d venture to guess my wife wishes I would.
@Odium I have the same affliction IRL. Let me know what works
This is only good news for Microsoft heads does nothing for the average gamer
@Fishticon
10FishticonYesterday, 9:12pm
We supported this and have yet to get anything out of it.
Next time MS wants to buy out a company I won't be so excited about it.
well i didn't support the abk deal but we did get something, ms rewards cutbacks.
They merged existing ABK revenue into it. Of course it was going to be a jump
@Sanquine as always numbers obscure a lot of things. GPU had a price increase last year, gold disappeared etc, so would take a lot more detailed info to see it all, but you are looking at single figure low growth most likely.
@themightyant so far there’s no cure, I think I’m okay with that. 😏
So are they including the ActiBlizz revenues for the time BEFORE they bought them? I don't think that should count.
I'm confused, how are Q2 2024 results being declared, we're only in January of 2024, not even through Q1???
Unless they have quirky financial years in MS, but normally results cannot get declared until that period has been closed off financially and all relevant financial transactions tallied. For this to be Q2 2024 they must run their financial year from 1st June? Meaning end of Dec 2023 is the end of their 2024 Q2.
Can anyone clear up my confusion?
@Kaloudz i tried filling those forms they give but i failed ...i dont even remember if did give my real date of birth and full name at 2006 we didnt really give a sh** but now im paying....im also ganna lose my FB and instagram linkin...
Great! Now I'd like to see some of that ABK catalogue appearing on GamePass.
@Kaloudz thanks ! I will try it out because i got lot of stuff lost in their
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