Microsoft’s Gaming Division Faces Headwinds Despite Activision Blizzard Acquisition

Microsoft’s latest financial results present a contrasting narrative. The technology giant reported an impressive 18% revenue surge to $77.7 billion overall, yet its gaming segment anchored by Activision Blizzard reveals significant challenges. Xbox gaming revenue declined by 2%, while hardware sales plummeted 29% – disappointing figures that come despite the multi-billion dollar acquisition.

Within Microsoft’s More Personal Computing division, which grew 4% to $13.8 billion, the gaming segment’s performance proved particularly concerning. The modest 1% increase in content and services was primarily fueled by third-party content and Game Pass subscriptions, while first-party titles from Activision Blizzard and other owned studios underperformed. The dramatic 29% drop in hardware revenue directly resulted from price increases implemented for Xbox Series Read more...