Microsoft Thanks Call Of Duty, Candy Crush For Sizzling Q3 Gaming Results
Portfolio Pulse from Franca Quarneti
Microsoft Corp's gaming revenue soared by 51% in Q3 fiscal 2024, reaching $5.45 billion, largely due to the inclusion of Activision Blizzard and King, with IPs like Call of Duty and Candy Crush Saga. This acquisition accounted for 55 percentage points of the growth. Xbox content and services revenue increased by 62%, but excluding Activision Blizzard, the growth would have been only 1%. Xbox hardware sales dropped by 31% due to lower console sales volume. Operating expenses rose by $1.3 billion, 41% year-over-year, with Activision Blizzard contributing 43 percentage points to this increase. Despite the cost of the acquisition, Microsoft projects continued growth in gaming sales but expects hardware sales to decline.
April 26, 2024 | 5:27 pm
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POSITIVE IMPACT
Microsoft's Q3 fiscal 2024 gaming revenue surged by 51% to $5.45 billion, significantly boosted by the Activision Blizzard and King acquisition. However, Xbox hardware sales saw a 31% decline.
The substantial increase in gaming revenue, primarily attributed to the acquisition of Activision Blizzard and King, indicates a positive impact on Microsoft's financial performance. However, the decline in Xbox hardware sales and the significant costs associated with the acquisition could temper investor enthusiasm. The overall positive stock price movement suggests the market views the acquisition and its contribution to revenue growth favorably, despite the increased expenses and hardware sales decline.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100