Microsoft posted one other blowout earnings report for Q2 of the 2024 fiscal 12 months, with revenues of $62 billion (up 18 % from final 12 months) and earnings of $21.9 billion (a 33 % enhance). However actually, probably the most fascinating factor about this quarter is that we lastly get to see how the $68.7 billion Activision Blizzard acquisition impacts the $3 trillion firm. Whereas Microsoft is not breaking out particular numbers, it says that its general gaming income elevated by 49 %, 44 factors of which got here from the “internet influence” of the Activision deal.
The rosy information is a bit stunning, contemplating that Microsoft introduced final week that it was shedding 1,900 folks throughout Xbox and Activision Blizzard. These layoffs embrace the remainder of Blizzard’s esports division, based on experiences, following 50 layoffs and a restructuring final summer season.
Microsoft’s Extra Private Computing division, which incorporates Xbox, Floor and Home windows, was up 19 % ($16.9 billion) since final 12 months. The corporate says the Activision deal accounted for 15 factors of that enhance. It is an enormous change for a division that is been severely impacted by dwindling PC gross sales (which impacts Home windows licenses and Surfaces) and struggling Xbox consoles. PC system revenues had been down 9 % for the quarter, whereas Xbox {hardware} gross sales had been up 3 %.
Xbox content material and companies income can be up 61 % since final 12 months, 55 factors of which comes from Activision. It’s going to be fascinating to see if Microsoft can really leverage that acquisition to assist Xbox gross sales, or on the very least, spur on extra curiosity in Sport Go subscriptions. (Sadly, we haven’t any updates on how that service is doing.)
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