Microsoft Debunks Activision Blizzard Acquisition Concerns: Proof of Gaming Growth

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Summary

  • Microsoft refuted a recent report claiming the Activision Blizzard acquisition hasn’t had a significant impact on Xbox Game Pass or its overall gaming business.
  • The company highlighted the fact that it’s been reporting Xbox content and services revenue growth since Q2 2024 as evidence going against the concerning report.
  • New performance details regarding Microsoft’s gaming division are expected to arrive as part of its next financial report, which is scheduled for January 29.

Microsoft has countered a recent report suggesting that their acquisition of Activision Blizzard hasn’t significantly affected Xbox Game Pass or their overall gaming business. However, they haven’t released fresh data regarding the performance of their gaming sector until at least late January 2025.

As a dedicated fan, I can share that back in October 2023, Microsoft sealed its massive $68.7 billion acquisition of Activision Blizzard King – the biggest deal in both gaming and tech history. Fifteen months down the line, a report from The Information revealed some less-than-impressive outcomes from this acquisition. The media outlet quoted Denny Fish, a portfolio manager managing approximately $800 million worth of Microsoft stocks, who described Activision’s post-acquisition performance as underwhelming. The report hinted that the ABK deal failed to boost Xbox Game Pass subscriptions significantly and overall didn’t seem to make much of an impact on Microsoft’s gaming division.

Microsoft has countered these allegations, stating that a report from The Information lacks proper context. A Microsoft representative told Insider Gaming that the company has been reporting growth in Xbox content and services revenue since Q2 2024, which they view as proof of the acquisition’s success. In fact, over the past nine months, this segment’s revenue has increased by 61%, with approximately 55% of that growth directly linked to the effects of the Activision Blizzard acquisition, according to the representative.

Activision Blizzard Labeled as the Driving Force Behind Microsoft’s Recent Gaming Growth

The company has vigorously defended the claim that the $68.7 billion deal brought no advantage to its subscription service. This was demonstrated back in October 2024, as Microsoft CEO Satya Nadella announced that Black Ops 6 set a record for Xbox Game Pass subscriber additions on launch day and was the largest Call of Duty release ever. Moreover, Activision Blizzard is reportedly responsible for 85% of the quarterly revenue growth in Microsoft’s gaming division since Q2 2024.

Microsoft Says It Never Considered Exiting Gaming Business

The Information’s article also implied that Microsoft had thoughts about leaving the gaming sector, with Nadella allegedly expressing this idea in 2021. However, a representative from the company firmly denied this claim when contacted by Insider Gaming. Despite a drop in Xbox hardware revenue over time, Microsoft asserts that user interaction on its gaming platforms has never been higher at present.

As a dedicated gamer, I can’t wait to learn more about the recent performance of Microsoft’s gaming division! The big day is January 29th, when they plan to unveil their second quarter fiscal year 2025 financial report. This means we’ll get insights into their financial status for the three-month period ending December 31st, 2024. Here’s hoping for some exciting updates!

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2025-01-18 16:54