Xbox Revenue Jumped 49% During Holiday Quarter, Driven By Activision Blizzard Acquisition - Sales
by William D'Angelo , posted on 01 February 2024 / 3,964 Views
Microsoft has released its earnings report for the second quarter of the 2024 fiscal year, which ended up December 31, 2023.
Xbox gaming revenue increased by 49 percent year-on-year to $7.11 billion. This includes "44 points of net impact from the Activision acquisition."
Xbox content & services revenue increased 61 percent compared to the same quarter a year ago. This includes "55 points of net impact from the Activision acquisition." Xbox hardware revenue grew three percent.
The growth in Xbox due to the Activision Blizzard acquisition was enough for it to surpass Windows as Microsoft's third biggest division in terms of revenue generated.
Xbox set all-time records for monthly active users on Xbox consoles, PC, and mobile, and there were 200 million monthly active users. The figure includes Activision Blizzard.
"This quarter we set all-time records for monthly active users of Xbox, PC, as well as mobile where we now have 200 million monthly active users, inclusive of Activision Blizzard King," said Microsoft CEO Satya Nadella. "With our acquisition we have added hundreds of millions of gamers to our ecosystem, as we execute on our ambition to reach more gamers on more platforms.
"With cloud gaming, we continue to innovate to offer more players more ways to experience the games they love where and when and how they want. Hours streamed increased 44% year-over-year.
"Great content is key to our growth, and across out portfolio I've never been more excited about our line-up of upcoming games. Earlier this month we shared exciting new first-party titles coming this year to Xbox, PC and Game Pass, including Indiana Jones, and we've also announced that we're launching significant updates this calendar year to many of our most durable franchises, which bring in millions of players each month including Call of Duty, Elder Scrolls Online, and Starfield."
Overall, Microsoft reported for the quarter GAAP revenue was up 18 percent year-over-year to $62.02 billion and net income was up 33 percent to $21.87 billion.
Microsoft's forecast for the quarter ending March 31, 2024 expects total Xbox revenue to grow in the low 40s percent year-on-year, with 45 points of impact from Activision Blizzard. Xbox content & services is expected to grow in the low to mid 50s percent, with 50 points of impact from Activision Blizzard. Xbox hardware revenue is expected to decline.
"In gaming, we expect revenue growth in the low 40s, including approximately 45 points of net impact from the Activision acquisition," said Microsoft CFO Amy Hood on the quarter ending March 31, 2024.
"We expect Xbox content and services revenue growth in the low to mid 50s, driven by approximately 50 points of net impact from the Activision acquisition. Hardware revenue will decline year-over-year."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.