Microsoft is seeing strong gaming revenue growth following its acquisition of Activision Blizzard King, despite declining Xbox hardware sales. The company celebrates the success of the Fallout franchise and plans to release new games in 2024.
Microsoft Gaming Revenue
Financial Results
Microsoft Corporation presented its financial report for the fourth quarter of fiscal year 2024, ended June 30. According to the data, revenue from the gaming division increased by an impressive 44% compared to the same period last year. The company's total revenue for the quarter reached $64.7 billion.
Gaming growth segment
Revenue from gaming content and services Xbox showed an impressive growth of 61%. This jump is mainly due to the integration of Activision Blizzard King, the acquisition of which was completed by Microsoft in October 2023. However, it's worth noting that Xbox console sales were down 42% year over year.
Xbox Audience
Satya Nadella, the head of Microsoft, said during a conference call with investors that the monthly active audience of Xbox games exceeds 500 million users. He also highlighted the success of the Fallout series on Prime Video, citing it as an example of the successful expansion of a gaming franchise into other media. According to Nadella, since the show's premiere, players' time spent playing Fallout games on Xbox Game Pass has increased fivefold.
Impact of Activision's acquisition of Blizzard King
Activision's purchase of Blizzard King had a significant impact on Microsoft's financial performance. Previous third-party revenues from games such as Call of Duty and Diablo 4 have now become internal, resulting in significant year-on-year growth.
Integration and future plans
Throughout 2024, Activision Blizzard King's integration into the Xbox ecosystem continued. The publishers took part in the annual Xbox Games Showcase and announced that Call of Duty: Black Ops 6 will be available on release day for Xbox Game Pass Ultimate subscribers on October 25, 2024. Microsoft has also begun adding games from the Activision Blizzard King catalog to Xbox Game Pass, including Diablo 4 and Call of Duty: Modern Warfare 3 (2023).
In the near future, Microsoft plans to release a number of highly anticipated projects, such as Avowed and Indiana Jones and the Great Circle from Xbox Game Studios and Bethesda Softworks. Although exact release dates for these games have not yet been announced, they are scheduled to release in 2024.
Glossary
- Microsoft is an American technology corporation, one of the largest manufacturers of software and games consoles
- Activision Blizzard King is a large video game developer and publisher acquired by Microsoft in 2023
- Xbox is a gaming brand consoles and services owned by Microsoft
- Fallout is a popular series of post-apocalyptic role-playing games
- Satya Nadella - CEO of Microsoft since 2014
Links
- Microsoft earnings press release
- IGN article on the impact of the Fallout series on gaming popularity
- Windows Central article on Xbox revenue growth
Answers to questions
How Microsoft's gaming revenues have changed since the acquisition of Activision Blizzard King ?
How many monthly active users does Xbox games have?
How has the Fallout series on Prime Video affected the popularity of the franchise's games?
Which Activision Blizzard King games have been added to Xbox Game Pass?
What anticipated games is Microsoft planning to release in the near future?
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Discussion of the topic – Microsoft conquers the gaming industry: 45% growth after acquiring Activision
Microsoft reports a significant 45% increase in gaming revenue after acquiring Activision Blizzard King. Financial results for the fourth quarter of fiscal 2024 demonstrate the success of the company's strategy in the gaming industry.
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Isabella
Wow, 44% growth in Microsoft gaming revenue! 🚀 Looks like Activision's Blizzard King purchase is really paying off. I wonder how this will affect the future of the gaming industry?
Hans
Yes, Isabella, impressive! But I'm more interested in the 42% drop in Xbox sales. Maybe people are just waiting for a new console? 🤔
Pierre
Hans, maybe you're right. But look at the number - 500 million monthly active users! This is a huge audience. I think Microsoft is betting on services rather than hardware.
Sofia
And I was impressed by the success of the Fallout series! 📺 It's cool that gaming franchises go beyond just games. Has anyone watched? Costs?
Gunther
It's all nonsense. Previously, games were better, without any series or subscriptions. Now they just siphon money out of people. I miss the good old days of buying a CD and playing.
Lucia
Sofia, I watched Fallout - great series! 👍 Now I want to try the game. Gunther, don't be such a grump, times are changing and that has its advantages!
Isabella
Lucia, I completely agree! Did you notice that Call of Duty: Black Ops 6 will be coming to Game Pass on launch day? This is a huge step for the series! 🎮
Oleksandr
Guys, what about Diablo 4 on Game Pass? Has anyone already played? Is it worth signing up for it or is it better to wait for Indiana Jones? 🤠