Activision made $2 billion for Xbox, accounted for 30% of total holiday 2023 revenues

With Activision's help, Xbox has delivered record-breaking $7.111 billion revenue during holiday 2023.

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Now that the Activision merger is closed, Microsoft has started combining Xbox and Activision revenues together. All of ABK's games and content are now recognized as first-party games, leading to a significant boost to content and services earnings.

In today's Q2 earnings report, Microsoft confirmed that Activision had a net impact of $2.08 billion revenue on Xbox's total quarterly results. Without Activision, Xbox gaming would have earned $5.031 billion during the quarter, making it the third-highest holiday period behind Holidays '20 and '21. This also means that Xbox only grew by 11.4% year-over-year, or $273 million, since the $4.758 billion recorded during Holiday 2022.

These numbers indicate that Activision's share is just over 29% of total Xbox gaming revenue for the Oct - Dec 2023 period.

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Since Microsoft no longer breaks down ABK's revenues on a per-segment level, we have absolutely no way of knowing how well specific games or services are doing. Before the merger, Activision would divulge a wealth of information to investors, relaying key data on sales revenues of each segment, Activision, Blizzard, and King, as well as MAU data and other important metrics.

Remember that the merger has consolidated a number of revenues, leading to eliminations, cost-saving synergies, and other long-term adjustments. As such, it's tough to compare periods before the merger, both for Microsoft and Activision. The reality is that Xbox has no frame of comparative reference for periods that don't include Activision, especially in the confines of Microsoft's accounting practices.