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If it weren’t for Activision Blizzard, Xbox would have dropped 4% in revenue, but it has broken records thanks to everything that moves Call of Duty, WoW, Diablo, Candy Crush, etc.
April 26, 2024, 00:20
Updated April 26, 2024, 00:21
The days go by and the time comes be accountable to shareholders and investors. Microsoft recently presented the financial report of the third quarter of fiscal year 2024. We will mainly focus on its gaming division, but there will also be room to talk about Microsoft’s unstoppable growth. Xbox is growing, and the main reason is due to everything that the purchase of Activision Blizzard.
Microsoft recently shared the Q3 financial results of fiscal year 2024 and, although we do not have all the numbers for Xbox’s total business, those at Redmond have shared some percentages interesting. Always comparing with the same period last year, the gaming division has grown quite a bit overall in revenue, except in one area that remains very important to Phil Spencer.
Activision Blizzard, life insurance for Microsoft
It turns out that the Gaming revenue has increased by 51% compared to the same quarter of 2023, mainly due to what Activision Blizzard offers. This is a huge increase, but it is more than justified because andLast year it was not counted what the company bought for almost 70,000 million dollars contributes. In addition to this, the revenue from content and services has increased by 62% on an interannual basis. Into this sector enters Game Pass, which has recently included important titles like Diablo 4but it is more than evident that more will arrive in the future.
However, the negative and worrying element is the hardware, that is, the Xbox Series X|S sales, which have decreased by 31% over 2023. The previous quarter rose 3% year-on-year, but it is demonstrated that in the video game industry everything can change at any time. Microsoft itself acknowledges in its report that this drop has been “driven by a lower volume of consoles sold“However, perhaps this will change and console sales increase When Xbox releases Hellblade 2, Avowed, the Call of Duty de 2024 o Indiana Jones and the Great Circle.
Bethesda, Activision and Blizzard, three giants in charge of Xbox.
Specifying the data even more, we have previously mentioned that, mainly, this huge increase in revenue was due to Activision Blizzard. The middle CharlieIntel has posted on X/Twitter that, during January and March 2024, the company has generated almost 2 billion, specifically 1.97. In fact, in another post It is specified that the Xbox’s overall revenue would drop 4% if the money contributed by Activision Blizzard King was not counted.
Even so, Xbox this quarter has had to face integration costs, transaction costs, operating expenses ($1.34 billion), and an estimated overall operating loss of 350 million of dollars for Activision Blizzard. Everything continues its course and this is normal since we are talking about transactions of a very large magnitude. In the coming months this will reduce and, furthermore, in 2025 we will no longer see huge increases like those that Xbox is doing in these quarters, because next year the comparisons will be with the results obtained these months with Activision Blizzard, something that was not done last year.
Xbox is no longer Microsoft’s third most generating business
Xbox’s big milestone last quarter was overcome Windows as the third business that more money generated for Microsoft. However, this time it’s not like that y Windows has recovered the bronze medal by achieving 5,929 million dollars compared to the 5,451 million dollars they have achieved with video games. The middle The Verge reports that this has occurred due to stronger than expected Windows OEM product revenue.
Microsoft’s business, divided into areas. All grow in income. (via App Economy Insights)
Yes indeed, Microsoft is a money making machineIn the image we leave you below we show how much all the divisions of the company located in Redmond have generated. In total, those 61.9 billion dollars have translated into a net profit of $21.9 billion in just three months, thus increasing by 20% compared to the first quarter of 2023. The goose that lays the golden eggs is once again Office y Microsoft Cloudincreasing 23% year over year, but what resists the company is the hardware in both games and Surface devices, decreasing 17%.
Microsoft now expects to make more money from Windows OEM products this summer as it releases a “PC con IA“In fact, investors want to see income in this area after the huge amounts of money Microsoft is investing in companies like OpenAI. Satya Nadella, CEO of Microsoft, said in the call with investors that Copilot Is available in 225 million computers: “In just a few weeks we will host a special event to talk about our vision for AI on Windows and devices.”
Xbox’s strategy with its own games
Many months have passed since we told you about Xbox’s strategy with its own gamesand today Nadella has spoken about it: “Finally, we are expanding our games to new platforms, bringing four of our favorite games for Nintendo Switch and PlayStation fans for the first time.” He also remembers the following: “In fact, earlier this month we had 7 games in the top 25 on the PlayStation Store, more than any other publisher.
For several days now in the top sales of There are more games owned by Microsoft than Sony in the PS Store. “We are committed to meeting players where they are by bringing great games to more people on more devices. We have broken records in the third quarter in hours of game streaming, console usage and monthly active devices,” says the company’s CEO, according to Tom Warren in his account. X/Twitter.
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