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Microsoft Projected To Out-Earn PlayStation In Post-Acquisition Of Activision Blizzard King


Posted on November 30, 2023 by Nick Moreno

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After years of court battles and tip-toeing around legal obstacles, the Xbox firm remained successful in acquiring Activision Blizzard King. Now Microsoft is in possession of IPs including Call of Duty, Overwatch, World of Warcraft, and Candy Crush. In response to the victory, CEO Satya Nadella expresses that the firm is to truly “double down” in shipping games now with its entire focus now back to Xbox once again.

As part of the legal legwork in post-deal, it is reported that standing CEO Bobby Kotick is to step away come the start of 2024. He confirms this in a statement which he elaborated was part of a conversation with Microsoft Gaming CEO Phil Spencer. Additionally, the PlayStation firm is also expected to spend in response to the deal as analysts suspect.

In a report from Newzoo, the Xbox firm is projected to out-earn PlayStation for the first time now with the Activision Blizzard King deal behind it for H1 2023. You can view the image below:

“In H1 2023, Microsoft generated revenues of $6.0 billion, +3.5% more than in H1 2022. Microsoft, unlike Sony, didn’t manage to sell more consoles in H1. That meant less revenue from software sales that normally complement new machines. Xbox’s service strategy offset this, with Xbox Game Pass contributing to Microsoft’s gaming growth.

“Like PlayStation, Microsoft—as a platform holder—benefitted from many third-party releases in H1. The company also enjoyed a cut of ongoing revenues from live-service games like Fortnite, FIFA 23, and Call of Duty: Warzone 2.0. Microsoft also finally passed its industry-disrupting $69 billion acquisition of Activision Blizzard after nearly two fraught years. The acquisition will make the industry even more top-heavy.

Newzoo adds, “If we combine Microsoft and Activision Blizzard’s revenues for H1, the total is $10.4 billion. This would make Microsoft the #2 games company by revenues, docking Sony down to #3 for the first time. Tencent still sits comfortably at the top.”

What is your impression on these projections for Xbox to out-earn PlayStation?

Source: Newzoo

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