Microsoft's acquisition of Activision Blizzard, completed in October 2023, has significantly impacted its gaming division, giving the company ownership of popular franchises like Call of Duty, World of Warcraft, Diablo, and Overwatch.

For the quarter ending September 30, 2024, Microsoft reported a remarkable 43% year-over-year increase in gaming revenue for its Xbox division, largely attributed to this acquisition.

Although Xbox hardware revenue declined by 29%, a substantial 61% increase in content and services revenue offset this drop, with 53 points of net impact directly linked to the Activision Blizzard deal.

During a quarterly earnings call on October 30, 2024, CEO Satya Nadella emphasized the company's strategy focused on long-term growth through higher-margin content and services, highlighting record monthly active users and revenue from Game Pass.

The recent launch of Black Ops 6, the first Call of Duty title available on Game Pass, has set a new record for day one players and is expected to attract between 2.5 to 4 million new Game Pass subscribers.

This launch has not only boosted Game Pass subscriptions but also led to a remarkable over 60% year-over-year increase in unit sales on PlayStation and Steam.