Microsoft posted another blowout earnings report for Q2 of the 2024 fiscal yr, with revenues of $62 billion (up 18 % from final yr) and earnings of $21.9 billion (a 33 % build up). However in point of fact, essentially the most attention-grabbing factor about this quarter is that we after all get to peer how the $68.7 billion Activision Blizzard acquisition impacts the $3 trillion corporate. Whilst Microsoft is not breaking out particular numbers, it says that its general gaming earnings higher by way of 49 %, 44 issues of which got here from the “internet affect” of the Activision deal.
Microsoft’s Extra Non-public Computing department, which contains Xbox, Floor and Home windows, was once up 19 % ($16.9 billion) since final yr. The corporate says the Activision deal accounted for 15 issues of that build up. It is a large trade for a department that is been seriously impacted by way of dwindling PC gross sales (which impacts Home windows licenses and Surfaces) and suffering Xbox consoles. PC tool revenues have been down 9 % for the quarter, whilst Xbox {hardware} gross sales have been up 3 %.
Xbox content material and products and services earnings may be up 61 % since final yr, 55 issues of which comes from Activision. It’s going to be attention-grabbing to peer if Microsoft can in reality leverage that acquisition to assist Xbox gross sales, or on the very least, spur on extra passion in Recreation Move subscriptions. (Sadly, we haven’t any updates on how that provider is doing.)
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