Summary
Microsofthas pushed back against a recent report stating that its Activision Blizzard acquisition hasn’t had a material impact on Xbox Game Pass or its overall gaming business. And while theXboxmaker provided some evidence to substantiate this claim, up-to-date performance figures concerning its gaming division aren’t expected to arrive before late January 2025.
Microsoft finalized its acquisition of Activision Blizzard Kingin October 2023. Valued at $68.7 billion, the purchase marked the largest deal of its kind ever completed in not just gaming but the entire tech industry. 15 months later, a report from The Information claimed that the acquisition’s impact fell short of internal expectations. The media outlet cited Denny Fish, a portfolio manager overseeing approximately $800 million worth of Microsoft stock, who labeled Activision’s post-acquisition performance as “disappointing.” The report suggested that the ABK deal did little to drive Xbox Game Pass growth and overall had little impact on Microsoft’s gaming division.
Microsoft has subsequently pushed back against these claims, with a company representative tellingInsider Gamingthat The Information’s report is missing context. Elaborating on this point, the spokesperson highlighted that Microsoft has been reporting Xbox content and services revenue growth since Q2 2024, citing it as evidence of the acquisition’s success. Over the past nine months, this segment’s revenue grew by 61%, with 55 of those points being directly attributed to the impact of theimpact of the Activision Blizzard acquisition, the representative said.
Activision Blizzard Labeled as the Driving Force Behind Microsoft’s Recent Gaming Growth
Microsoft Says It Never Considered Exiting Gaming Business
The Information’s report also suggested that Microsoft recently considered exiting the gaming industry, claiming Nadella said something to that effect in 2021. A company representative outright denied this in a statement to Insider Gaming. And while theXbox hardware revenue has long been on a decline, Microsoft claims that user engagement across its gaming platforms is currently the highest it’s ever been.
Up-to-date details concerning the performance of the tech giant’s gaming division are expected to arrive on January 29. That’s the date when Microsoft is scheduled to share its consolidated financial report for the second quarter of its fiscal year 2025, which covers the three-month period ending July 20, 2025.
Xbox Game Pass Ultimate
Xbox Game Pass Ultimate is the highest tier of Microsoft’s flagship game subscription service that offers over 100 game titles that you can play with a single purchase, making it one of the most outstanding value propositions of the Xbox ecosystem to date.
