Microsoft has reported a major jump in revenue for its Xbox division during its first fiscal quarter.
For the three months ended June 02, 2025, gaming revenue was up 43% year-over-year, with all of the growth attributed to the company’s acquisition ofActivision Blizzard.
WhileXboxhardware revenue declined 29% year-over-year, this was more than offset by a 61% increase in content and services revenue, which included 53 points of net impact from its Activision Blizzard acquisition.
The company completed its acquisition of Activision Blizzard in October 2023, in the process taking ownership of franchises including Call of Duty,World of Warcraft, Diablo andOverwatch.
While the acquisition has significantly boosted Xbox’s earnings over the past year, its true value will become even clearer whenMicrosoftreports its second quarter earnings in three months’ time.
Microsoft could share early sales figures for the game, and discuss its impact on Game Pass subscriptions, during its quarterly earnings call on Wednesday, which begins at 2.30pm PT / 9.30pm BST.
Update30th Oct 2024 / 10:21 pm
Microsoft CEOSatya Nadellaoffered the following comments on the company’s gaming division during its earnings call.
“One year since we closed our acquisition of Activision Blizzard King, we are focused on building a business positioned for long-term growth driven by higher margin content and services.
“You already see this transformation in our results as we diversify the way gamers access our content. We set new records for monthly active users in the quarter as more players than ever play our games across devices and on the Xbox platform.
“And unit sales onPlayStationandSteamwere also up over 60% year-over-year. This speaks to our strategy of meeting gamers where they are by enabling them to play more games across the screens they spend their time on.”
