Microsoft’s Q2 Gaming Revenue Skyrockets by 49% Post Activision Merger

Activision Boosts Microsoft's Q2 Gaming Revenue, Soars by 49%

Microsoft posted stellar financials for the second quarter of 2024, including $62 billion in revenue (up 18% year-over-year) and $21.9 billion in profits (a 33% jump). But the most fascinating aspect is getting the first glimpse into how the massive $68.7 billion purchase of Activision Blizzard is impacting the tech titan.

While not providing granular details, Microsoft says its overall gaming haul increased 49% – with 44 percentage points of that growth attributed to folding in Activision’s numbers.

The More Personal Computing division, encompassing Xbox, Surface, and Windows, grew 19% to $16.9 billion. And the company tags Activision as accounting for 15 points of that division’s expansion. It’s a sea change for a segment grappling with sliding PC sales (hitting both Windows and Surface) and lackluster Xbox console uptake.

In fact, PC device revenue slipped 9% amid the doldrums, while Xbox hardware sales inched up only 3%. However, Xbox content and services jumped 61%, with Activision providing a 55 point jolt.

Looking ahead, it will be telling to see if Microsoft can utilize Activision properties to spur Xbox interest and Game Pass subscriptions. But for now, the early returns showcase the instantaneous impact from video gaming’s largest buyout ever.