Microsoft's Gaming Revenue Is Up 49 Percent In Q2, Mostly Thanks To the Activision Deal

For the first time, Microsoft's Q2 earnings report includes the impact of the company's $68.7 billion Activision Blizzard acquisition. 'While Microsoft isn't breaking out specific numbers, it says that its overall gaming revenue increased by 49 percent, 44 points of which came from the 'net impact' of the Activision deal,' reports Engadget. From the report: Microsoft's More Personal Computing division, which includes Xbox, Surface and Windows, was up 19 percent ($16.9 billion) since last year. The company says the Activision deal accounted for 15 points of that increase. It's a huge change for a division that's been severely impacted by dwindling PC sales (which affects Windows licenses and Surfaces) and struggling Xbox consoles. PC device revenues were down 9 percent for the quarter, while Xbox hardware sales were up 3 percent. Xbox content and services revenue is also up 61 percent since last year, 55 points of which comes from Activision. Overall, Microsoft reported revenues of $62 billion, up from $52.7 billion a year earlier. Microsoft's cloud division posted revenue growth of 28%, with its intelligent-cloud revenue up 20% to $25.9 billion. Meanwhile, its productivity and business-processes segment generated $19.2 billion.

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