It's time for another round of quarterly reports (October to December), where Microsoft is first among the major video game companies. As usual, they generated impressive revenues, reaching $62 billion for the quarter, of which $21.9 billion was net income. Considering it cost Activision Blizzard just under $70 billion, that means it recouped about a third of that purchase in three months.
The most interesting part for us is of course the games, and this includes Activision Blizzard for the first time. This led to the division called Microsoft Gaming increasing its revenue by 49%, and thanks to this, Microsoft gaming is now bigger than Windows (the cloud is still the largest, followed by Office).
It's worth noting that the cost of integrating Activision Blizzard into Microsoft was astronomical, and the company's gaming division still ran at a loss during the quarter. Considering that 1,900 people were laid off last week, most of them from Activision Blizzard, gaming is expected to be profitable early next quarter. Unfortunately, we have not received any new numbers about the number of Game Pass subscribers.
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