Microsoft has shared its Q2 2024 financial results, reporting significant revenue gains across its gaming division – including a massive 61 percent increase in Xbox content and services revenue – following its $69bn acquisition of Activision Blizzard.
As per its Q2 earnings release, Microsoft’s gaming revenue increased by 49 percent compared to the equivalent quarter in its previous financial year, with the company recording a 61 percent boost in Xbox content and services revenue – which encompasses money generated by the likes of Game Pass – alongside a three percent increase in Xbox hardware revenue.
Unsurprisingly, Microsoft’s Activision Blizzard acquisition was a key driver of its Q2 growth, with the deal contributing to just over $2bn in revenue. However, operating expenses and other costs – including transaction- and integration-related costs – saw the net impact of the Activision Blizzard deal result in an operating loss of $440m.
As noted by The Verge, Microsoft’s latest figures mean gaming is now the company’s third largest business, contributing over $7.1bn in revenue for its latest quarter.
Today’s strong gaming revenue results follow last week’s announcement Microsoft would be laying off 1,900 workers across its video game teams, with workers at Activision Blizzard, ZeniMax, and Xbox all affected. At the time, Xbox CEO Phil Spencer said the cuts – which equate to around eight percent of Microsoft’s total gaming workforce – were a “painful decision”.
Last week also brought the news Blizzard president Mike Ybarra would be departing Microsoft, with former Call of Duty general manager Johanna Faries now set to take over the role.