Xbox delivers record-breaking $21.5 billion revenue amid slight hardware decline

Microsoft reports new record-breaking gaming revenues as it recognizes the full might of Activision's earnings potential.

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Xbox just reported its full fiscal year earnings following the $70 billion Activision-Blizzard merger. Microsoft's FY24 gaming results reflect three consecutive quarters of Activision Blizzard King's billion-dollar contributions, and the service titan has had a strong material impact on Xbox's total-year results.

According to the loose figures provided by Microsoft and calculated by us (with the help of past historical figures from Xbox numbers expert John Welfare), Xbox gaming delivered a record-breaking $21.524 billion in revenue throughout Fiscal Year 2024 (July 2023 - June 2024).

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Xbox's new high earnings mark represents a sizable +39% increase over FY23, where it delivered a solid $15.446 billion. As in past quarters and fiscal periods, the bulk of Xbox's new FY24 results were driven by high-margin business segments like game sales, subscriptions, services, and in-game purchases.

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Content & Services, which includes everything from software sales and Xbox Game Pass subscriptions to microtransactions, generated $18.579 billion throughout FY24, accounting for a whopping 87% of total-year earnings. Content & Services was summarily up +53% year-over-year, of which Activision Blizzard King was a major contributor.

Hardware, on the other hand, was down slightly by -13% year-over-year in FY24 to $2.872 billion. Console sales revenue in particular dived in Q4'24 where it dropped by -45% to just $345 million, but overall, hardware earnings were not down past -13% for the full year.

Interestingly enough, hardware also comprised just 13% of Xbox's total FY24 earnings as well.

For more information on Xbox's hardware results and proportion of earnings when compared against PlayStation and Nintendo, check out our Big 3 console sales comparison here.

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