Microsoft Denies Reports That Revenue from Activision Acquisition Has Been ‘Disappointing’

Microsoft is refuting claims that their purchase of Activision Blizzard hasn’t brought the growth in the Xbox Gaming sector they anticipated.

Earlier this week, a report from The Information claimed that analyst and portfolio manager Danny Fish stated that Activision has been underperforming in terms of Microsoft’s earnings. However, Microsoft has since contested The Information’s report, asserting it to be inaccurate and suggesting that by leaving out crucial details, the report is presenting an incorrect picture of their business.

Contrary to what was stated in the report, Microsoft has actually seen an increase in revenue for its Xbox content and services, as per Insider Gaming. This surge amounted to a 61% uptick from the second quarter of FY2024, which was primarily fueled by the net impact (55 points) from the acquisition of Activision. The subsequent quarter also witnessed a 62% rise, with Activision contributing 61 points towards this growth.

In the Q4 of 2024 and Q1 of FY 2025, Xbox saw a significant surge in revenue by approximately 61%, with over 58 points from the Activision deal in Q4 and 53 points in Q1. This suggests that more than 85% of Xbox’s revenue growth during these quarters can be attributed to Activision, which seems far from disappointing.

During a first-quarter financial year 2025 earnings call in October, Microsoft’s CEO, Satya Nadella, noted that we surpassed previous records with the highest number of monthly active users ever. This increase was seen as players engage with our games on various devices and the Xbox platform. He further stated that the company is strategically positioned for sustained growth in the future.

As a dedicated gamer, I can’t help but feel thrilled about the massive success of Call of Duty: Black Ops 6 on Xbox Game Pass. This game shattered records, setting a “new Q1 record for total revenue and average revenue per subscriber.” It’s no wonder it’s been such a hit!

Rumors have circulated that Microsoft was contemplating shutting down the Xbox in 2021, but luckily, those whispers were just that – rumors. Our fearless leader, Satya Nadella, has confirmed that Microsoft is not backing away from gaming, instead, we’re “all in on gaming.” So, it looks like the future of gaming on Xbox is bright!

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2025-01-17 21:42