Although Microsoft has pursued an aggressive acquisition strategy in recent years, the acquisition of Activision Blizzard King stands out as the most significant. The company responsible for Call of Duty, Diablo, and Candy Crush is a market powerhouse, and its impact was enough to salvage Xbox's financial quarter.

Video: Microsoft Paid $70 Billion for Activision Blizzard

Activision Blizzard King Bolstered Xbox’s Financial Results This Quarter

Just recently, Microsoft released its financial report for the first quarter of the 2025 fiscal year, which spans from July to September. Initially, the main business driver remains office services and products, with Office 365 performing very well. Next comes everything related to Azure cloud services, followed by gaming and computing products, as shared by the App Economy Insights account on X.

877729.jpg
Microsoft’s financial results for July to September

With that in mind, the gaming sector made headlines as Activision Blizzard King essentially saved the finances of Microsoft Gaming and Xbox. According to the report, total gaming revenue saw a 43% increase, directly attributed to the acquisition, which alone accounted for this 43% rise. In the previous report, it was estimated that Xbox had only grown by 2% without Activision's impact, confirming that the brand itself had no real growth compared to the prior fiscal year period.

877732.jpg
Activision Blizzard King boosted Microsoft Gaming and Xbox

Meanwhile, services and content—including Xbox Game Pass, game sales, and in-game transactions—grew by 61% year-over-year, with Activision contributing 53% of that increase.

Lastly, the decline in Xbox Series X|S continues, though not as drastically, with hardware revenue down 29% compared to the same period in 2023.

Stay tuned to LEVEL UP for more.

Related Video: Xbox Admits It Let Down Fans

Source 1, Source 2