2024-01-31 11:11:14
For the first time since the acquisition of Activision Blizzard, Microsoft revealed its financial results. The firm is in very good health, a few days after the announcement of 1,900 layoffs.
The succession of events at Microsoft leaves a very particular aftertaste. Only a few days after the announcement of more than 1,900 layoffs at Xbox, while we are discovering the extent of the damage day after day through numerous testimonies, Microsoft publishes financial results of the 2nd quarter of the 2024 financial year. It corresponds to the results from October to December, i.e. the end-of-year holiday period.
Unsurprisingly, the firm is still doing very well. The one that managed to become the most valuable company in the world announced more than $62 billion in turnover for a net profit of $21.9 billion. This is the first quarter since the acquisition of Activision Blizzard, finalized on October 13, 2023. Since the firm had paid the $75.4 billion for the acquisition mainly in cash, this does not negatively affect the results.
The Xbox console sale is still worrying
Obviously, when you integrate the first Western video game publisher into your stable, the results are good. Thus, Xbox notes a 49% increase in its turnover, with especially a 61% growth in revenue linked to content and subscriptions (game sales, Xbox Game Pass, etc.). The acquisition of Activision Blizzard contributed $2 billion to Xbox’s revenue.
As a result, the Xbox branch brought in $7.11 billion in revenue, more than Windows’ $5.26 billion. This is the first time that Microsoft’s video game business has exceeded its Windows business. It’s historic, the operating system is really no longer the jewel of the firm.
On the other hand, the sale of Xbox consoles is still at half mast. The firm does note growth, but it is only 3% while we are talking about the end-of-year holiday period, which is ideal for purchasing a console. Especially since Microsoft seriously lowered the price of its console in the United States and Europe during this period. It was thus possible to find the Xbox Series
Microsoft is doing very well
We focus a lot on the branch “More Personnal Computing» which is the one concerning the general public with Windows, Surface and Xbox, but the rest of the American giant is doing well and represents the majority of its revenues. Thus, the Azure branch generated 26 billion in turnover, while the Microsoft 365 and LinkedIn branch brought together 19.2 billion dollars.
An excellent result which will definitely remain bitter, especially for people who have lost their jobs in recent days.
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