Xbox Content and Services Revenue up Sharply, Hardware Sales Down
The trend from last quarter continues at Microsoft. Revenues from Xbox Content and Services are up significantly thanks to the acquisition of Activision Blizzard, while Xbox hardware sales are down. This is expected to continue.
Microsoft has released its fourth quarter (April to June 2024) and full year (July 2023 to June 2024) earnings report. The gaming segment generated $21.5 Billion, or about €19.9 billion, in revenue during the fiscal year, an increase of nearly 39 per cent over the previous year. Xbox content and services revenue grew 50 per cent year-over-year, with Activision Blizzard contributing 39 per cent. Xbox hardware revenue decreased 13 per cent. Activision Blizzard contributed revenues of $5.7 Billion (€5.3 billion) and an operating loss of $1.4 billion (€1.3 billion) due to various post-merger related costs.