Microsoft published Another explosive income report For the second quarter of fiscal year 2024, revenues of $62 billion (up 18 percent from last year) and profits of $21.9 billion (up 33). But really, the most exciting part of this quarter is that we finally get to see how it all plays out Acquisition of Activision Blizzard for $68.7 billion It affects a $3 trillion company. While Microsoft did not disclose specific numbers, it said its overall game revenue rose 49 percent, with 44 percent of that coming from the “net impact” of the Activision deal.
Microsoft’s More Personal Computing division, which includes Xbox, Surface and Windows, grew 19 percent ($16.9 billion) from last year. The company said the Activision deal accounted for 15 points of that increase. It’s a big change for a division that has been hit hard by declining PC sales (affecting Windows licenses and Surfaces) and struggling Xbox consoles. PC device revenue fell 9 percent in the quarter, while Xbox hardware sales rose 3 percent.
Xbox content and services revenue also grew 61 percent from last year, with 55 percent coming from Activision. It will be interesting to see if Microsoft can actually use this acquisition to help Xbox sales, or at least drive more interest in Game Pass subscriptions. (Unfortunately, we do not have any updates on how this service works.)
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