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MS Xbox Division 4Q Results: hardware -42% | gaming revenue +44% (w/out ABK -4%) | overall Xbox content and services +61% (w/out ABK +3%)


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Office and cloud are strong for Microsoft’s revenues.

 

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Xbox and gaming

 

Xbox content and services revenue, which includes Xbox Game Pass, is up by 61 percent this quarter. Activision Blizzard revenues have once again contributed to the majority of revenue here, with 58 points of net impact. Without Activision Blizzard revenues, Xbox content and services revenue will still have been up 3 percent year over year.

 

 

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While there’s a lot of anticipation for new games on Xbox Game Pass, console sales are still struggling. Xbox hardware revenue is down a massive 42 percent this quarter.

 

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Despite the poor Xbox hardware revenue, gaming revenue at Microsoft is up 44 percent overall, helped again by the additional Activision Blizzard revenue. In fact, that revenue added 48 points, so overall gaming revenue at Microsoft would have been down 4 percent if the company hadn’t acquired Activision Blizzard.

 

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Because I'm a financial dork, I looked up Activision's revenue for the quarter ending June 30, 2023 and it was $2.21 billion:

 

https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-second-quarter-2023-financial

 

So, Activision-derived revenue actually declined by about 8% year-over-year.

  • Sicko Sherman 1
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