Microsoft revealed that it has registered a 49% increase in Xbox division revenue. During a press conference, CEO Satya Nadella revealed that the company has registered new records of monthly active users for Xbox, PC and mobile devices. Of these, mobile alone represents 200 million monthly active users.
Xbox content and services revenue increased 61%, driven by Activision's 55-point net impact, while revenue from Xbox hardware they increased by 3% compared to the previous year. The company also expects hardware revenue to decline in the future: growth will primarily come from software sales and subscription services.
The new revenue data take into account the acquisition of Activision Blizzard King, which brought big games under the Microsoft umbrella, including franchises like Call of Duty and World of Warcraft, as well as Diablo and Overwatch. The increase in monthly active users on mobile can likely be attributed to products like King's Candy Crush Saga.
Late on December 31, Microsoft saw its gaming revenues rise to $7.1 billion, attributing 44 percentage points of net impact to Activision Blizzard.
“On the gaming side, we expect revenue growth around 40 percentage points, including approximately 45 percentage points of net impact from the Activision acquisition,” he said Amy Hood, Microsoft CFO. “We expect Xbox content and services revenue growth of just over 50 percentage points, driven by approximately 50 percentage points of net impact from the Activision acquisition.”
The layoffs
Obviously this data is in part tainted by other Microsoft ads. The gaming division has in fact fired 1,900 people, with many successful teams losing part of their staff and entire divisions decimated, such as the eSports one.
All the teams in the gaming division were affected, including Activision Blizzard, Bethesda and the internal teams.
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