By 
In a global headline, Microsoft’s video-game business has outpaced its Windows division in revenue for the first time during the December quarter.
This notable development is underscored by the substantial impact of Microsoft’s $62 billion acquisition of game publisher Activision Blizzard.
The information is derived from Microsoft’s 10-Q filing with the SEC, coinciding with its earnings report for the second quarter of the 2024 fiscal year.
Microsoft recorded impressive financial results for the quarter ending December, reporting a revenue of $62 billion and a net income of $21.9 billion. These figures reflect an 18% and 33% increase, respectively.
Notably, this marks the first financial report since Microsoft’s acquisition of game developer Activision Blizzard, known for popular titles like Call of Duty, Warcraft, and Candy Crush.
Operating under the Xbox brand, the gaming division experienced a remarkable 49% growth, contributing $7.1 billion, surpassing revenue from Windows and hardware sales.
While Windows revenue rose by 9.5% to $5.3 billion, the substantial boost from gaming acquisitions outpaced it.
Microsoft’s other revenue sources include the Productivity and Business segment, featuring Microsoft Office, Office 365, LinkedIn, and Dynamics 365, with a valuation of $19.2 billion.
At the forefront of the company’s earnings are cloud services, emerging as the leading revenue generators, totaling a significant $25.9 billion. These two segments occupy the top positions in Microsoft’s earnings hierarchy.
In the More Personal Computing category, which comprises Windows, Windows OEM devices, and Xbox content and services, Microsoft generated $16.9 billion in revenue.
The revenue from Xbox content and services contributed to a 61% rise in revenue, with 55% of that attributed to the Activision acquisition. Microsoft claims that the acquisition has had a net positive impact of $2 billion in revenue.
Comments