Xbox hardware down a wooping 30%.
Quote:Overall, gaming revenue is up 51 percent, bolstered by the additional Activision Blizzard revenue, which contributed 55 points of net impact. That means without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter. The newly acquired division recorded $1.97 billion in revenue during Q3, but the cost of integration, transaction costs, and other costs of revenue all total $980 million. With other operating expenses ($1.34 billion), it calculates to an overall operating loss of $350 million for Activision Blizzard.
Xbox content and services would have only been up a single percent without Activision Blizzard, so it’s clear that this giant purchase is already having a big impact on Microsoft’s overall gaming revenues.
Nadella is happy with their results on PlayStation