Microsoft Made More Money From Gaming Than Windows in Q2

Microsoft’s acquisition of Activision-Blizzard appears to be delivering substantial returns, evident in the company’s most recent financial report, which illustrates a noteworthy shift. Gaming revenue, which now stands at $7.11 billion, has eclipsed Windows revenue, which totaled $5.26 billion, solidifying its position as Microsoft’s third-largest revenue stream.

For the quarter ending on December 31, 2023, Microsoft reported a total revenue of $62 billion, marking an impressive 18% increase. Additionally, the company posted a net income of $21.9 billion, reflecting a substantial 33% surge.

As for Microsoft’s other revenue sources, the Productivity and Business segment, encompassing Microsoft Office, Office 365, LinkedIn, and Dynamics 365, was valued at $19.2 billion. Simultaneously, cloud services emerged as the company’s leading revenue generators, contributing a substantial $25.9 billion, thereby occupying the top two positions in Microsoft’s earnings hierarchy.

A lot of Microsoft’s cloud offerings are now powered by AI, so it is safe to say that Microsoft’s investments in AI over the past years, particularly with OpenAI, are paying off well. Microsoft is not only the biggest investor in OpenAI but also has a seat on the AI startup’s board.

The “More Personal Computing” category, encompassing Windows, Windows OEM devices, and Xbox content and services, has achieved a revenue of $16.9 billion. A significant portion of this growth is credited to the substantial rise in revenue from Xbox content and services, accounting for a notable 61% increase. Notably, out of this surge, 55% is directly attributed to the strategic acquisition of Activision.

Microsoft proudly asserts that this acquisition has had a net positive impact of $2 billion in revenue, underscoring the considerable benefits derived from this move.

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