A Microsoft announced a considerable improvement in Xbox division sales during the 2nd quarter of fiscal year 2024, with a 61% increase in Xbox content and services revenue, which includes money generated by services such as Game Pass, as well as an increase of 49% in revenue obtained from games compared to the same period last year. There was also a 3% increase in revenue earned from Xbox hardware.
One of the reasons for such significant percentages is the purchase of Activision Blizzard, which is already being accounted for in these financial results and contributes more than US$2 billion. However, some expenses resulted in the net impact of the negotiation with ABK causing an operating loss of US$440 million.
As pointed out by The Verge, the gaming division is Microsoft’s third largest revenue contributor, being responsible for more than US$7.1 billion in the last quarter and ranking above even Windows.
Microsoft CEO Satya Nadella commented on the results. He said that the company recorded records of monthly active users on the platforms where the company operates: “This quarter, we set all-time records for monthly active users across Xbox, PC and mobile devices. We now have over 200 million monthly active users, including Activision Blizzard games,” said the executive.
“With our acquisition, we add hundreds of millions of players to our ecosystem as we realize our ambition to reach more players on more platforms”continued. “With cloud gaming, we continue to innovate to give more players more ways to experience the games they love, where, when and how they want. Hours streamed increased by 44% compared to last year”.
He also revealed that he is excited about the company’s game portfolio, commenting on upcoming games from Microsoft studios coming to Xbox, PC and Game Pass, such as the new Indiana Jones.
However, not everything is rosy. Last week, Microsoft announced the layoff of 1,900 employees at Activision Blizzard and Xbox, representing around 8% of its gaming division’s workforce, which has approximately 22,000 people.
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