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Sunday, July 14, 2024

Microsoft Sees Gaming Revenue Take Hit in Q4

  • Xbox content and services reported a 6% decrease in revenue compared to Q4 2021.
  • Gaming revenue fell by $259 million during the quarter — a 7% decline year-over-year.

Microsoft reported $51.9 billion in revenue in fiscal Q4, marking its slowest revenue growth since 2020, as it undergoes the approval process for the biggest gaming acquisition in history.

The tech giant generated $198.3 billion in revenue in FY2022, an 18% uptick compared to the same period last year. Full-year operating income reached $83.4 billion, growing by 18%. 

  • Microsoft Cloud posted $25 billion in revenue in Q4, a 28% increase year-over-year. 
  • Its Personal Computing segment — which includes Xbox — saw revenue hit $14.4 billion in Q4.
  • Xbox content and services reported a 6% decrease in revenue compared to Q4 2021.
  • Gaming revenue fell by $259 million in fiscal Q4 2022 — a 7% decline year-over-year. 

Microsoft attributed the drop in gaming revenue to a decrease in Xbox hardware sold, which was also compounded by the decline in Xbox content and services revenue in Q4. The company, like many others in tech, has suffered from the ongoing semiconductor shortage.

Lengthy Process

Earlier this month, Microsoft submitted “Second Request” documents to the FTC regarding its $68.7 billion purchase of Activision Blizzard, which could be approved as soon as August.

Microsoft is close to gaining approval from the FTC, but its deal for Activision is being investigated by the Competition and Markets Authority — a U.K. antitrust watchdog. The CMA is considering whether the deal will harm competition, lead to high prices, or reduce choices.

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