Xbox Gaming Revenue up 51%, but Only Thanks to Activision Blizzard
Microsoft has released its FY24 Q3 financial report. Revenues in the gaming segment were up 51 per cent, mainly due to the impact of the Activision Blizzard acquisition. Xbox consoles, on the other hand, saw a considerable drop in sales.
Microsoft's total gaming revenue for the three months ended 31 March was 5.451 billion US dollars, roughly 5.07 billion Euros. This is a healthy increase of 51 per cent and puts gaming just under 500 million US dollars (466 million Euros) behind the Windows segment. Without the contribution from Activision Blizzard, the gaming business would have seen a decline of four per cent. The Verge writes about Activision Blizzard's integration costs: "The newly acquired division recorded $1.97 billion in revenue during Q3, but the cost of integration, transaction costs, and other costs of revenue all total $980 million. With other operating expenses ($1.34 billion), it calculates to an overall operating loss of $350 million for Activision Blizzard."