Microsoft’s acquisition of Activision-Blizzard appears to be delivering substantial returns, as evidenced by the company’s most recent financial report, which shows a significant shift.
Gaming Revenue
Gaming revenue now stands at $7.11 billion, surpassing Windows revenue of $5.26 billion, cementing its position as Microsoft’s third-largest revenue source.
Revenue of $62 billion
Microsoft reported $62 billion in total revenue for the quarter ending December 31, 2023, representing an impressive 18% increase. Furthermore, the company reported a net income of $21.9 billion, representing a significant 33% increase.
Other revenue source
Microsoft’s other revenue source, the Productivity and Business segment, which includes Microsoft Office, Office 365, LinkedIn, and Dynamics 365, was worth $19.2 billion.
Simultaneously, cloud services emerged as the company’s leading revenue generators, contributing a significant $25.9 billion and taking the top two positions in Microsoft’s earnings hierarchy.
Many of Microsoft’s cloud offerings are now powered by AI, indicating that Microsoft’s AI investments in recent years, particularly with OpenAI, have paid off handsomely.
Microsoft is not only the largest investor in OpenAI, but it also serves on the AI startup’s board.
AI startup’s board
The “More Personal Computing” category, which includes Windows, Windows OEM devices, and Xbox content and services, generated $16.9 billion in revenue.
A significant portion of this growth is attributed to the significant increase in revenue from Xbox content and services, which accounts for a 61% increase.
Notably, the strategic acquisition of Activision accounts for 55% of this surge.
Microsoft proudly claims that this acquisition resulted in a net revenue increase of $2 billion, highlighting the significant benefits gained from this move.
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