MICROSOFT Q3 SEES HUGE XBOX GAMES REVENUE SPIKE THANKS TO ACTIVISION AND GAME PASS

Microsoft has reported a substantial revenue increase for its Xbox content and services in the third quarter of FY 2024, largely attributed to its acquisition of Activision Blizzard King. The company revealed a 62% surge in the sector, with a 17% year-over-year growth resulting in $15.6 billion in revenues. Despite the impressive numbers, excluding Activision's impact, Xbox content and services saw only a 1% increase. Microsoft's gaming revenue overall rose by 51% to $5.45 billion, but this includes a 55 point contribution from the Activision purchase. Without it, the sector would have seen a 4% decline.

Xbox console sales dipped by 31% due to fewer units sold. Nevertheless, gaming has hit new heights on the platform, with Microsoft CEO Satya Nadella announcing record-breaking game streaming hours and console usage, alongside an impressive engagement with Game Pass offerings. Notably, gamers logged over 10 million hours on Diablo 4 within its first 10 days on Game Pass. The success of Call of Duty: Modern Warfare 3 was also spotlighted, alongside the performance of Microsoft's titles on other platforms, including seven games hitting the PlayStation Store's top 25 downloads list.

New product releases that contributed to the quarter's success included the Minecraft DLC in collaboration with BBC Earth, Palworld entering game preview, Season 11 of Sea of Thieves, the Operation: Spirit of Fire update for Halo Infinite, the Dune Expansion for Microsoft Flight Simulator, the acclaimed release of Obsidian's Pentiment, and the launch of new gaming accessories. Microsoft's overall revenue for the quarter was up by 17%, reaching a total of $61.9 billion.

The acquisition of Activision Blizzard King played a significant role in Microsoft's increased revenue, contributing to a 62% rise in Xbox content and services revenue and accounting for 55 points of the 51% increase in overall gaming revenue.

Diablo 4, a highly-anticipated entry in the renowned Diablo series by Blizzard Entertainment, has been an influential factor in Microsoft's Q3 success. The RPG franchise is celebrated for its dark fantasy and horror themes, providing players with a hack-and-slash dungeon crawler experience. It has a strong legacy, with the first game released in 1996, eventually leading to the launch of Diablo 2, which is considered one of the greatest video games of all time. Diablo 3 continued the series' success, and with Diablo 4, expectations are high for the next chapter in this beloved series. The engagement with Diablo 4, especially through Game Pass, indicates that the series continues to command a loyal fan base and critical interest.