Microsoft Report: Gaming division has a record year in terms of revenue, but console sales continue to decline
Microsoft released its report for the fourth quarter and the entire fiscal year ending June 30, 2024. We have selected key metrics from the gaming division.
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Fourth Quarter Data
- Xbox revenue increased by 44% year-on-year. Without Activision Blizzard, it would have decreased by 4%.
- Activision Blizzard earned $1.68 billion this quarter with an operating loss of $570 million.
- Quarterly revenue from Xbox gaming content and services sales grew by 61%, with Activision Blizzard accounting for 58% of the growth.
- Quarterly sales of gaming hardware plummeted by 42%.
Fiscal Year Data
- Annual revenue for Microsoft's gaming division increased by 39% compared to the previous year, reaching $21.5 billion. According to analyst estimates, this is a record.
- Of this amount, $5.7 billion was contributed by Activision Blizzard. At the same time, Activision Blizzard had an operating loss of $1.36 billion, largely due to various expenses related to the deal with Microsoft. Recall that Activision Blizzard became part of the corporation only in October 2023.
- Annual revenue from Xbox gaming content and services sales rose by 50%, and without Activision Blizzard, it would have only grown by 6%.
- Revenue from gaming hardware sales fell by 13%, due to a decrease in the number of consoles sold.
- Microsoft CEO Satya Nadella, during a conversation with investors, added that at the end of the fiscal year, the total number of monthly active players across all Microsoft platforms and devices exceeded 500 million.
