Microsoft’s massive $68.7 billion purchase of video game giant Activision Blizzard has delivered an immediate financial windfall for its Xbox division. According to recent quarterly financials, Xbox gaming revenues jumped 49% following the acquisition’s completion – with Activision accounting for a staggering 44 percentage points of that growth.
The deal, which faced legal hurdles before approval, handed Microsoft ownership of blockbuster franchises like Call of Duty, Overwatch and World of Warcraft. That translated to a 61% surge in revenue specifically from Xbox content and services when folding Activision’s numbers into the equation.
Industry analyst MauroNL cited records indicating Activision has contributed over $2.1 billion in net revenue gains for Microsoft so far, even after factoring huge buyout costs. For a company aggressively investing in gaming studios and technology to boost Xbox’s fortunes, it’s a monumental early return.
These financials marked the first since the regime change, leading Microsoft executives to predict sustained momentum and benefits as Activision’s franchises are more tightly integrated into ecosystems like Xbox Game Pass subscriptions. After years pursuing the landmark union, Microsoft is already reaping massive rewards from its video gaming bet.
