Microsoft's gaming segment revenues continue to soar following the acquisition of Activision Blizzard King.
Microsoft released its financial results for the fourth quarter of the 2024 fiscal year, which ended on June 30, 2024. The company reported a substantial 44% increase in gaming revenues compared to the same period last year. The total revenue for Microsoft in the quarter reached $64.7 billion.
Revenues from Xbox content and services surged by 61%. This spike is largely attributed to the acquisition of Activision Blizzard King, finalized by Microsoft in October 2023. However, it is important to note that Xbox hardware sales dropped by 42% year-on-year.
Satya Nadella, Microsoft's CEO, highlighted during a conference call with investors that Xbox games boast over 500 million active users monthly. He also pointed out the success of the Fallout series on Prime Video, citing it as an example of how the gaming franchise's audience is expanding through other media. According to him, following the show's release, the number of hours spent playing games in the Fallout series on Xbox Game Pass increased fivefold.
The acquisition of Activision Blizzard King has significantly transformed Microsoft's financial landscape. Previously, external revenues from games like Call of Duty and Diablo 4 have now become internal, resulting in substantial year-over-year growth.
The integration of Activision Blizzard King into the Xbox ecosystem has continued throughout 2024. Publishers participated in the annual Xbox Games Showcase, announcing that Call of Duty: Black Ops 6 will be available on the day of release for Xbox Game Pass Ultimate subscribers on October 25, 2024. Microsoft has also begun adding games from the Activision Blizzard King catalog to Xbox Game Pass, notably Diablo 4 and Call of Duty: Modern Warfare 3 (2023).
Looking ahead, Microsoft plans to release several highly anticipated titles, including Avowed and Indiana Jones and the Great Circle from Xbox Game Studios and Bethesda Softworks. While exact release dates have yet to be announced, these projects are slated for 2024.
Source: Windowscentral, IGN
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