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News Microsoft's Xbox Gets Another Revenue Boost From Activision

 
 

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Chad
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Microsoft's Xbox division has seen a significant revenue boost, largely attributed to the Activision Blizzard acquisition. Here are the key points:

1. Overall Gaming Revenue Growth:
- Gaming revenue increased by 43% year-over-year in FY25 Q1 (quarter ending September 30, 2024).
- This substantial growth is primarily due to the Activision Blizzard King acquisition, which was finalized on October 13, 2023.

2. Xbox Content and Services:
- Revenue in this segment grew by an impressive 61% year-over-year.
- The majority of this growth is attributed to the Activision Blizzard King acquisition.
- Microsoft stated that 53 points of the 61% growth came from the net impact of the Activision acquisition.

3. Hardware Performance:
- Despite the overall growth, Xbox hardware revenue declined by 29% year-over-year.
- This decline might be influenced by Microsoft's strategy to make its games more widely available beyond Xbox consoles.

4. Call of Duty Success:
- Call of Duty: Black Ops 6, which launched after the reported quarter, set a franchise record for day one players and day one subscriber additions to Xbox Game Pass.
- The game's unit sales were up 60% compared to the previous year's release.

5. Integration of Activision Blizzard:
- Microsoft has been integrating Activision Blizzard King's portfolio into the Xbox ecosystem.
- This includes launching games like Call of Duty: Black Ops 6 day one on Xbox Game Pass Ultimate and Xbox Cloud Gaming.

6. Future Outlook:
- Microsoft is building on a substantial roadmap of first-party content across Activision Blizzard King, Bethesda Softworks, and Xbox Game Studios.
- Upcoming titles in 2025 include DOOM: The Dark Ages, Fable, and South of Midnight.

This revenue boost demonstrates the significant impact of the Activision Blizzard acquisition on Microsoft's gaming division, particularly in content and services. While hardware sales have declined, the growth in software and subscription services indicates a shift in Microsoft's gaming strategy, focusing on content availability across multiple platforms and leveraging its expanded game portfolio.
 
 

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