Microsoft announced its financial results for the third quarter ended March 31, 2024, in which Xbox content and services revenue increased by 62%.
Microsoft said the growth was driven by a 61-percentage-point net impact from the Activision acquisition as part of a broader push into personal computing. Thanks to the latter, the industry’s revenue grew 17% year over year to $15.6 billion. However, excluding the impact of Activision Blizzard King, Xbox content and services revenue increased by only 1%.
Game revenue increased 51% year-on-year to $5.45 billion, but another 55 percentage point increase came from Microsoft’s acquisition of Activision Blizzard King, otherwise the industry would have declined 4% year-on-year.
In terms of hardware, due to reduced sales this quarter, Xbox console sales fell 31% year-on-year.
During a conference call with investors, Microsoft CEO Satya Nadella said the company’s third quarter set records for game streaming hours, console usage and monthly active devices. According to Nadella, Game Pass users have played more than 10 million hours of Diablo 4 in the first 10 days, making it the company’s largest first-party game since it was added to the service on March 28. Pass release one.
The continued success of Call of Duty: Modern Warfare 3 was also highlighted, reiterating that Microsoft has released four fan-favorite games on PlayStation and Switch, noting that earlier this month, the company had seven games making the cut PlayStation Store top 25 download list. – More than any other publisher.
The company also highlighted product launches for the quarter, such as Minecraft and BBC Earth DLC, previews of popular games at Palworld, Sea of Thieves Season 11, Halo Infinite’s Operation: Spirit of Fire Introducing the Dune expansion for Microsoft Flight Simulator, releasing Obsidian’s critically acclaimed Peniment and several new accessories.
Overall, the company’s revenue for the quarter rose 17% to $61.9 billion.
