Microsoft's Gaming Division Soars with 49% Revenue Increase Post-Activision Blizzard Acquisition

Microsoft's Gaming Division Soars with 49% Revenue Increase Post-Activision Blizzard Acquisition

Microsoft's latest financial reports for Q2 2024 have highlighted a significant uptick in its gaming division's revenue, soaring by 49% following the monumental acquisition of Activision Blizzard for $69 billion. This increase is primarily attributed to a 61% rise in Xbox content and services revenue, including Game Pass, and a modest 3% growth in Xbox hardware sales.

The acquisition has significantly bolstered Microsoft's gaming segment, contributing over 2 billion USD in revenue. However, it's noted that operational costs and transaction-related expenses resulted in an operational loss of 440 million USD from the deal. Despite these costs, gaming has emerged as Microsoft's third-largest business sector, generating over 7.1 billion USD in the reported quarter.

This financial milestone comes amidst Microsoft's announcement last week of a workforce reduction, affecting 1,900 employees across its gaming departments, including Activision Blizzard, ZeniMax, and Xbox teams. The decision reflects around an eight percent cut in Microsoft's gaming workforce, described by Xbox CEO Phil Spencer as a "painful decision." The reshuffling also sees Johanna Faries stepping in as the new president of Blizzard, taking over from Mike Ybarra.

Source: Eurogamer