As part of Microsoft Q4 2024 Results today, we get an insight on how the company’s gaming division is doing. Per the released earnings slides, Microsoft has stated that their “content and services” revenue has grown 61% with “58 points of net impact from the Activision acquisition”. Gaming revenue as a whole has grown 44% which includes “48 points of net impact” from the Activision-Blizzard acquisition as well. Xbox hardware revenue has declined 42%
More on the outlook of personal computing and the impact of the Activision-Blizzard acquisition can be found below in the following slides:
Microsoft’s gaming initiatives have seen a positive impact on their revenue thanks to the acquisition, which was completed on the 13th of October last year. Game Pass subscription prices are set to increase come this September and Microsoft Gaming has more titles set to launch later this year such as ‘Age of Mythology’ and ‘Call of Duty: Black Ops 6’. Lastly, there will be new hardware SKUs coming later this year.
Much of the company’s revenue continues to be built on software sales and subscriptions and hardware seemingly continues to be less of a focus for a company across the board. Not specific to the Xbox division, for example, but Microsoft reported “Devices Revenue” to be down by 11% (down 9% CC) as they “continue to focus on higher margin premium products. Search and news advertising also saw a 19% growth due to continued increase in search and web traffic to Bing and MSN. And naturally, the company’s true earners continue to be Intelligent Cloud, Productivity Software, and other sectors of Personal Computing. Since the markets have closed (and as of this writing), MSFT’s stock price and market cap has shrunk down 30 billion in after hours trading.
The company plans to hold an investor call at 2:30PM PT/5:30PM ET to provide more information on their released earnings statements.
Sources: Microsoft IR/The Verge
