It's time for another round of quarterly reports (for October-December), with Microsoft being the first among major video game companies. As usual, they reported incredible revenue, reaching $62 billion in the quarter, of which $21.9 billion was net income. Considering that Activision Blizzard cost just under $70 billion, that means they recouped about a third of that purchase in three months.
The most interesting part for us is of course gaming, and that includes Activision Blizzard for the first time. This led to the division called Microsoft Gaming increasing its revenue by 49%, and thanks to this, gaming is now bigger for Microsoft than Windows (the biggest is still Cloud followed by Office).
It is worth mentioning that the cost of integrating Activision Blizzard into Microsoft was astronomical, and overall the gaming part of the company still made a loss during the quarter. Considering that 1900 people were laid off last week, mainly from Activision Blizzard, gaming is expected to be profitable already next quarter. Unfortunately, we did not receive any new figures for the number of Game Pass subscribers.
Thanks, The Verge.