XBOX GAMES REVENUE SOARS AS ACTIVISION BOOSTS SALES AND GAME PASS USERS LOG MILLIONS OF HOURS ON DIABLO 4 - MICROSOFT Q3

Microsoft's Q3 2024 financials indicate a significant boost in Xbox games revenue, with a 62% increase in Xbox content and services, spurred primarily by its acquisition of Activision Blizzard King. This acquisition alone contributed 61 points to the revenue increase, contributing to the sector's overall growth of 17% year-over-year, reaching $15.6 billion. Excluding Activision's impact, the Xbox content and services' growth was a modest 1%. The gaming revenue saw a 51% rise to $5.45 billion, yet again mainly attributed to the acquisition, without which the growth would have been a decrease of 4% yoy.

However, Xbox hardware sales didn't perform as well, with a 31% yoy decline due to fewer units sold. Microsoft CEO Satya Nadella emphasized the company's strong performance in other areas, highlighting record numbers in game streaming hours, console usage, and monthly active devices. Notably, Game Pass subscribers played over 10 million hours of Diablo 4 in just the first ten days after its launch, marking one of the most significant Game Pass launches. The ongoing popularity of Call of Duty: Modern Warfare 3 was also a highlight.

Additionally, Microsoft released several products in Q3, including Minecraft and BBC Earth DLC, Palworld, Sea of Thieves Season 11, Halo Infinite Operation: Spirit of Fire, the Dune Expansion for Microsoft Flight Simulator, and acclaimed Pentiment by Obsidian. Microsoft also remained a top game publisher on the PlayStation Store, with seven titles in the top 25 downloads list. Overall, Microsoft experienced a 17% increase in revenue, reaching $61.9 billion.

The Activision Blizzard acquisition had a significant impact on Microsoft's Q3 2024 financial performance, accounting for a substantial part of the revenue growth in Xbox content and services. Without this acquisition, revenue growth in this sector would have been considerably lower.

Background Information:

Activision Blizzard King's acquisition by Microsoft has been one of the most notable consolidations in the gaming industry, marking a significant expansion of Microsoft's gaming portfolio. This acquisition includes blockbuster franchises such as Call of Duty, World of Warcraft, and Candy Crush, among others. The deal has been under close scrutiny by industry observers and regulatory authorities, given its potential impact on the competitive landscape of the gaming market. Diablo 4, as mentioned in the financial results, is the latest installment in the critically acclaimed Diablo series known for its influential role in shaping the action RPG genre. As for Game Pass, it is Microsoft's subscription-based service offering access to a rotating catalog of games for Xbox consoles, PC, and cloud gaming.