Microsoft’s purchase of Activision-Blizzard seems to be paying off, as the latest financial report reveals that gaming revenue ($7.11 billion) has surpassed Windows ($5.26 billion) to become the company’s third-largest source of revenue. Microsoft reported $62 billion in revenue for the quarter ended December 31, 2023 (up 18%) and $21.9 billion in net income (up 33%).
Productivity and business, which includes Microsoft Office, Office 365, LinkedIn, and Dynamics 365, was valued at $19.2 billion, while cloud services contributed $25.9 billion as Microsoft’s top two earners.
Microsoft FY24 Q2 Financial Performance
The More PC category, which includes Windows, Windows OEM devices, and Xbox content and services, generated $16.9 billion in revenue, with Xbox content and services revenue contributing to a 61 percentage point increase in revenue, of which 55 are attributed to the Activision acquisition. Microsoft claims the acquisition has a net positive impact of $2 billion in revenue.