Xbox earnings hit $6.58 billion in Q2, second highest holiday quarter of all time

Xbox reports its second-highest holiday quarter thanks to the help of Activision Blizzard King's billion-dollar contributions.

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Today Microsoft revealed its earnings results for Q2 FY25, which runs from October - December 2024. The holidays are critical for games companies, and Xbox managed to pull in $6.581 million in total revenue throughout the 3-month period. Unsurprisingly, this is the second highest quarter of earnings in Xbox history, and the second-highest Q2 earnings behind Q2'FY24's all-time high of $7.111 billion.

"Gaming revenue increased $1.2 billion or 11% driven by growth in Xbox content and services, offset in part by a decline in Xbox hardware. Xbox content and services revenue increased 24% driven by the impact of the Activision Blizzard acquisition," reads Microsoft's earnings report.

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• Gaming revenue declined 7%
• Xbox content and services revenue grew 2% driven by growth in Xbox Game Pass

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Unfortunately, Microsoft did not reveal exactly how much of this revenue was weighted by Activision, so we can't do breakaway data to infer how much ABK is actually earning.

So what's exactly going here? Why isn't there a huge surge of growth from Black Ops 6, which happened to be the first-ever Call of Duty game to launch into Xbox Game Pass? Hardware is having a downward pull on Xbox earnings, and we'll have more in-depth coverage on that soon.

Microsoft management is set to reveal more details about Q2 financials during an earnings call that will go live soon. We may get more updates on Xbox Game Pass subscriber figures in the call, alongside new info on Xbox...but these details may also be very sparse.