Microsoft's Gaming Revenue Is Up 49 Percent In Q2, Mostly Thanks To the Activision Deal

For the first time, Microsoft's Q2 earnings report includes the impact of the company's $68.7 billion Activision Blizzard acquisition. "While Microsoft isn't breaking out specific numbers, it says that its overall gaming revenue increased by 49 percent, 44 points of which came from the 'net impact' of the Activision deal," reports Engadget. From the report: Microsoft's More Personal Computing division, which includes Xbox, Surface and Windows, was up 19 percent ($16.9 billion) since last year. The company says the Activision deal accounted for 15 points of that increase. It's a huge change for a division that's been severely impacted by dwindling PC sales (which affects Windows licenses and Surfaces) and struggling Xbox consoles. PC device revenues were down 9 percent for the quarter, while Xbox hardware sales were up 3 percent. Xbox content and services revenue is also up 61 percent since last year, 55 points of which comes from Activision. Overall, Microsoft reported revenues of $62 billion, up from $52.7 billion a year earlier. Microsoft's cloud division posted revenue growth of 28%, with its intelligent-cloud revenue up 20% to $25.9 billion. Meanwhile, its productivity and business-processes segment generated $19.2 billion.

Revenue up 10bn

[darkain]

But still needed to layoff 1900 people this past week.

At least they waited until literally the day after a live conference to can entire teams, the ones that were putting on the show!?

What a shitty company right now.

Re: Revenue up 10bn

[drinkypoo]

There has never been a time when they were not a shitty company on at least some level. The only difference is that now it's on all levels.

Re:

[thegarbz]

But still needed to layoff 1900 people this past week.

Companies aren't make work programs, if you want that go work for the Chinese government. Acquisitions and mergers always involve cutting duplicate teams.

Re:

[tlhIngan]

But still needed to layoff 1900 people this past week.

At least they waited until literally the day after a live conference to can entire teams, the ones that were putting on the show!?

What a shitty company right now.

Revenue != Profit.

Just because they're making more money doesn't mean they're actually making money. They can pull in more money, but they could also be losing more money. Or losing less money.

This is actually great

[stikves]

So, they finally fixed their house, and making good on gaming, after that terrible Xbox One generation which almost bankrupted their gaming division, and caused massive layoffs back in the day.

It should then be nice to have billions coming in both from existing part of the company, and the new Activision Blizzard King arm. Hence no need to lay off people right?

(Checks back two days ago).

What? Why are you letting go almost 2,000 people when things are actually sunny? Revenue is up. Console sales are up. Dail

Re:This is actually great

[ThosLives]

The thing that is "off" is that Microsoft didn't create any of that value - they merely bought the creators.

Microsoft didn't invent anything or create a new game or games here to grow their revenue - they literally used their massive piles of cash to buy the creator and claim their products as their own.

Their revenue is literally just changing the ownership line on a ledger. It will be a while to see any effect of what Microsoft will add "on their own" via this acquisition.

No good will come of this

[alancjohnson]

Microsoft's strategy for buying Activision is to tie in the players to Microsoft accounts, just like they did with Minecraft. They want gamers to have a dependency on Microsoft more than anything. I am sure it won't long before you will be required to have a Microsoft account to play any old Activision games, and of course you will need to agree to Microsoft's terms of service. I suspect Microsoft are building a significant account base across their entire product range to position themselves as a adverti

Activision Blizzard will be losing $$ in 5 years

[bsdetector101]

Activision Blizzard will be losing $$ in 5 years as the main leadership of AB have bailed ship already. Will get worse under MS. 1 planned game has already been canceled, not a good sign of things to come. Poor Blizzard was great, then Activision bought them, now MS owns them, double screwed !

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[account_deleted]

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