Microsoft: Q3 gaming revenue rises 51% due to Activision Blizzard

Microsoft has recorded a significant rise in gaming revenue, thanks to the inclusion of Activision Blizzard stats.
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Microsoft has released its financial results for the quarter ending 31 March 2024, revealing significant uptick in gaming revenue, driven by the acquisition of Activision Blizzard. Per these results, gaming revenue is up by a whopping 51% in Q3, to USD $5.45 billion, as boosted by the inclusion of Activision Blizzard games.

These stats now include revenue totals for major franchises including Call of Duty, World of Warcraft, Overwatch, and other titles – many of which contain live service elements and microtransactions purchased by passionate player bases. While this boost is offset by the USD $68.7 billion purchase price of Activision Blizzard, it’s likely the revenue generated by the company’s biggest franchises will eventually more than justify the acquisition.

Elsewhere in its latest financial results, Microsoft confirmed an overall 62% boost to Xbox content and services revenue, also driven by Activision Blizzard data, as well as a significant downturn in Xbox hardware revenue. As noted, this declined 31% year-on-year – perhaps ushering in a greater need for an Xbox hardware refresh.

Read: BlizzCon 2024 is officially cancelled

In a subsequent financial call, Microsoft CEO Satya Nadella was enthusiastic about Microsoft’s future in gaming, and called out the company’s acquisition of Activision Blizzard for having a major impact on setting Q3 records. According to Nadella, including Activision Blizzard in the Q3 reports led to records for game streaming hours, console usage, and monthly active devices.

Diablo 4 was noted as a contributor, as one of the biggest first-party Xbox Game Pass launches on the subscription platform, and Call of Duty: Modern Warfare 3‘s ongoing success has also impressed leadership so far.

These successes will likely continue into Q4, with gaming revenue growth expected to leap again – although the company has predicted that hardware sales will continue to drop, year-on-year. While Microsoft’s gaming revenue is healthy, it does appear the popularity of the current Xbox Series X and Series S consoles is waning.

This hardware prediction could change in future, as Microsoft does have plans for a new console (and we know this from early leaks) – but we’ll just have to stay tuned to see what’s next for the company.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.