Microsoft's Gaming Revenue Increased 49% in Q2

Microsoft has shared its financial results in the second quarter of the 2024 fiscal year. Following the acquisition of Activision Blizzard in October, it managed to raise its gaming revenue by 49% to $7.1 billion, including 44 points of net impact from the Activision deal. Xbox content and services revenue increased 61%, driven by 55 points of net impact from Activision, which is interesting considering a recent report stating Microsoft has closed departments that were responsible for bringing Xbox games to physical retail and massive layoffs at Activision Blizzard and Xbox.

While Xbox hardware revenue increased 3% year-over-year, Microsoft says that the Activision Blizzard acquisition brought it $2.1 billion in revenue and a $437 million operating loss.

He stated that hours streamed through cloud gaming increased 44% year-over-year and added that "great content is key" to the company's growth, and it has an exciting line-up of upcoming games, including Indiana Jones and the Great Circle.

For the current quarter ending in March, Microsoft expects revenue growth "in the low 40s, including approximately 45 points of net impact from the Activision acquisition" and Xbox revenue jump about 50% "driven by approximately 50 points of net impact from the Activision acquisition." At the same time, hardware revenue is said to decline year-over-year.

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