What you need to know
- Microsoft shared its financial results for FY24 Q4, the quarter ending June 30, 2024.
- Gaming revenue was up 44%, with growth coming from the acquisition of Activision Blizzard King compared to 2023.
- Xbox content and services revenue was up 61% year-over-year.
- Xbox hardware revenue is down 42% year-over-year.
The largest gaming acquisition in history continues to shape the picture of Microsoft’s financial results.
Microsoft shared its financial results for FY24 Q4 on Tuesday, outlining details across the company’s divisions and revealing that gaming revenue was up 44% year-over-year. Like in FY24 Q3 and FY24 Q2, this boost is primarily driven by the acquisition of Activision Blizzard King, which Microsoft completed in October 2023.
Xbox content and services revenue is up 61%, mostly (but not entirely) driven by the acquisition of Activision Blizzard King. Meanwhile, Xbox hardware revenue is down 42% year-over-year.
How has Activision Blizzard King changed Xbox revenue?
Ever since Microsoft finalized its acquisition of Activision Blizzard King on Oct. 13, 2023, it changed the following year of financial results. This move brought previously third-party revenue for games like Call of Duty and Diablo 4 in-house, altering how things were accounted for. As a result, we’re seeing a one-time gargantuan boost to the year-over-year numbers that Microsoft reports,, as these quarters are being directly compared to a prior quarter that didn’t have those games as first-party titles.
Integration of Activision Blizzard King into the rest of Xbox has progressed throughout 2024, with the publishers taking part in Microsoft’s Xbox Games Showcase for the year and revealing that Call of Duty: Black Ops 6 would be available day one on Xbox Game Pass Ultimate.
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