Microsoft posted another blowout earnings report for Q2 of the 2024 fiscal 12 months, with revenues of $62 billion (up 18 % from final 12 months) and income of $21.9 billion (a 33 % enhance). However actually, essentially the most attention-grabbing factor about this quarter is that we lastly get to see how the $68.7 billion Activision Blizzard acquisition impacts the $3 trillion firm. Whereas Microsoft is not breaking out particular numbers, it says that its general gaming income elevated by 49 %, 44 factors of which got here from the “web affect” of the Activision deal.
Microsoft’s Extra Private Computing division, which incorporates Xbox, Floor and Home windows, was up 19 % ($16.9 billion) since final 12 months. The corporate says the Activision deal accounted for 15 factors of that enhance. It is an enormous change for a division that is been severely impacted by dwindling PC gross sales (which impacts Home windows licenses and Surfaces) and struggling Xbox consoles. PC gadget revenues had been down 9 % for the quarter, whereas Xbox {hardware} gross sales had been up 3 %.
Xbox content material and providers income can be up 61 % since final 12 months, 55 factors of which comes from Activision. It will be attention-grabbing to see if Microsoft can truly leverage that acquisition to assist Xbox gross sales, or on the very least, spur on extra curiosity in Recreation Cross subscriptions. (Sadly, we haven’t any updates on how that service is doing.)
This text incorporates affiliate hyperlinks; for those who click on such a hyperlink and make a purchase order, we could earn a fee.
Trending Merchandise
