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 earning releaseMicrosoft's gaming revenue increased by 49 percent compared to the equivalent quarter in its previous financial year, with the company recording a 61 percent increase in Xbox content and services revenue – which encompasses money generated the likes of Game Pass – plus 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 costs related to transaction and integration – saw the net impact of Activision Blizzard deal resulting in an operating loss of $440m.
Ace noted by The VergeMicrosoft'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 equal 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 the company today announcing former Call of Duty general manager Johanna Faries will take over the role.
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