The analysts' report says that the acquisition of Activision has not yet brought the growth that Xbox expected, but the dynamics are positive

According to a new report by The Information, Activision's acquisition of Blizzard has not generated the growth Microsoft had hoped for its Xbox business. Analyst Danny Fish noted that "Activision has been a disappointment" for the company's overall revenue. However, representatives of Microsoft and Activision denied this information, claiming that the report does not take into account all aspects of their work after the acquisition.
Here's What We Know
Over the past four quarters, Microsoft has regularly reported an increase in revenue from Xbox content and services. For example, in the second quarter of 2024, Xbox revenue grew by 61%, of which 55 points were related to the acquisition of Activision. In the next quarter, the growth was 62%, and in the fourth quarter of 2024 - another 61%. In the first quarter of 2025, revenue grew again by 61%, with 53 points coming from Activision.
According to the data, Activision accounted for more than 85% of revenue growth in each quarter. However, the last three quarters have seen small, steady growth outside of Activision's influence.
Microsoft CEO Satya Nadella highlighted the benefits of the acquisition during the latest earnings report, noting that the company set new records for active users and achieved success with the Xbox Game Pass service. He also reported a record number of new Game Pass subscriptions on the day of Call of Duty: Black Ops 6 release.
As for the rumours about the possible winding down of Microsoft's gaming business, the company categorically denies this, emphasising its determination to remain in the gaming industry.
Source: The Information