Microsoft’s Q3 2024 results (fiscal Q1 2025) continue to reflect Xbox’s shifting strategy: Xbox’s gaming revenue grew 43% year-on-year , but essentially all of this growth came from the Activision Blizzard acquisition (43 points of net impact) Xbox content and service revenue grew 61% , with 53 revenue points of net impact from the acquisition Xbox’s hardware sales fell 29%, continuing a trend from previous quarters Black Ops 6 has performed well so far , setting records for day one players, new Game Pass subscribers on a launch day, and increased unit sales off-platform Xbox’s Activision Blizzard acquisition is doing its job Let’s address the elephant in the room: In terms of overall gaming revenue for the quarter, Microsoft’s growth would have been flat if not for the Activision Blizzard acquisition.
min read
