Summary
Microsoftwas the world’s leading video game publisher in December 2024. While hardware from Nintendo and PlayStation has taken up a lot of headline space over the past few months, Xbox and its parent company have surged ahead in terms of software. The latest sales figures show that theMicrosoftstrategy of acquiring studios and putting games out across platforms has paid off in a big way.
Xbox consoles and accessories haven’t seen major success lately. In the last fiscal quarter,Xbox hardware sales dropped by 29%after a 42% year-over-year decline in fiscal year 2024. However, Microsoft’s overall gaming business grew in the same period, thanks to strong performance from its services and software. It now looks like that trend is continuing in the current year.
According to a report from analyst firm Ampere, as reported byVGC, Microsoft games generated $465 million in December 2024, almost $100 million more than second-place publisher EA. Most of that revenue is thanks to the company’s Activision Blizzard acquisition. Activision’sCall of Dutysurpassed 500 million copies soldin 2024, and now that Microsoft owns the franchise, all new sales ofCall of Dutygames and DLC count toward its profits, even when they happen on competitor’s hardware. Humorously, Ampere says 64% of spending on Microsoft titles in December came from PlayStation users, so Sony is technically driving more Microsoft sales than Xbox.
Call of Duty Helped Microsoft Games Draw Nearly Half a Billion Dollars in December
Ampere citesCall of Duty: Black Ops 6as the big driver of Microsoft’s publishing success in December 2024. It helped theCall of Dutygame launcher attract tens of millions of monthly users and drove sales across Xbox, PC, and PlayStation to help Microsoft reach an audience far beyond its own consoles. Such strong sales performance is also proof that the company’s focus on acquiring game studios without making their titles Xbox exclusives has been good for business. The company likely won’t slow down on that approach anytime soon, with Xbox boss Phil Spencer stating thatMicrosoft is eyeing more acquisitionsin the future.
With competitors focusing on exclusive titles and new hardware, Microsoft’s strategy is unique, but it seems to be working well for the company. That’s good news, too, as analysts predictXbox will fall behind Nintendo and PlayStationin the next console generation in terms of system sales. If Microsoft keeps performing so well as a publisher, though, it could make up for a lack of console competitiveness.
