Microsoft gaming revenue up 43% year-on-year due to Activision acquisition

Microsoft has launched its monetary outcomes for Q1 of its fiscal yr 2025, exhibiting robust development over its gaming segments following the Activision acquisition, although Xbox {hardware} income is down.

The numbers

For the three months ended September 30, 2024:

• Income: $65.6 billion (up 16% year-on-year)
• Web revenue: $24.7 billion (up 11% year-on-year)

• Extra Private Computing (incl. Xbox) income: $13.2 billion (up 17% year-on-year)

The highlights

It has been a constructive quarter for Microsoft as an entire, pushed by its Cloud and AI companies, and a very fascinating one in its gaming divisions. The corporate would not share actual numbers inside its Extra Private Computing phase, which incorporates Xbox, however did share that its gaming income as an entire was up 43% year-on-year.

It famous “web impression from the Activision acquisition” on the income of its Xbox content material and companies department, up 61% year-on-year. Xbox {hardware}, nonetheless, was down 29% in comparison with the identical interval final yr.

Nonetheless, Amy Hood famous that leads to Microsoft’s gaming phase had been above its expectations for the quarter as a consequence of robust efficiency in “each first and third-party content material in addition to consoles.”

Within the earnings name, CEO Satya Nadella shared that Recreation Cross set a “new Q1 file for whole income and common income per subscriber,” with the profitable launch of Name of Responsibility Black Ops 6 seemingly persevering with to drive these numbers since then as Microsoft stated it broke records for Game Pass suscriptions (the title launched after the tip of Q1 and isn’t included in these outcomes).

He additionally commented: “One yr since we closed our acquisition of Activision Blizzard King, we’re targeted on constructing a enterprise positioned for long-term development, pushed by higher-margin content material and companies. You already see this transformation in our outcomes, as we diversify the ways in which avid gamers entry our content material.

“We set new information for month-to-month lively customers within the quarter, as extra gamers than ever play our video games throughout gadgets and on the Xbox platform.”

Trying forward, Microsoft expects its gaming income to expertise a decline within the “excessive single digits” for Q2, “as a consequence of {hardware},” and Xbox content material and companies income to be “comparatively flat.”