Microsoft’s acquisition of Activision-Blizzard seems to be paying off, as the latest financial report now shows gaming revenue ($7.11 billion) has overtaken Windows ($5.26 billion) as the company’s third largest revenue stream. Microsoft reported $62 billion in revenue for the quarter ending on December 31, 2023 (up 18%) and $21.9 billion net income (up 33%).

Microsoft is now making more revenue from gaming than from Windows

Productivity and business which includes Microsoft Office, Office 365, LinkedIn and Dynamics 365 was valued at $19.2 billion while cloud services contributed $25.9 billion as Microsoft’s top two earners.


Microsoft FY24 Q2 Financial Performance

Microsoft FY24 Q2 Financial Performance

The More Personal Computing category which includes Windows, Windows OEM devices and Xbox content and services generated 16.9 billion in revenue with Xbox content and services revenue contributing a 61-percentage point rise in revenue out of which 55 is attributed to the Activision acquisition. Microsoft claims the acquisition has a net positive impact of $2 billion in revenue.

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