Xbox delivers historic $7.11 billion revenue in holiday 2023

With the help of Activision Blizzard King, the Xbox gaming division generated record-breaking results during goliday 2023.

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Q2 FY24 marks the first time that Microsoft recognized Activision's revenues in its Xbox gaming segment. The company today announced the results for the Oct - Dec holiday 2023 period as a historic day for the Xbox brand.

Xbox gaming made $7.11 billion in global holiday revenues, driven primarily by a significant +61% spike in content and services. Xbox was able to deliver an extra $2.353 billion revenues over last year, where it generated $4.758 billion in total Xbox ecosystem revenue.

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• Hardware - $1.422 billion
• Content & Services - $5.689 billion
• Xbox Total - $7.111 billion

So how does Microsoft's performance weigh against the competition? Neither Sony nor Nintendo have published their holiday 2023 results, but we can do some past comparisons.

While Microsoft has carved out a new high watermark for Xbox, the company is still far from beating PlayStation's current holiday results. That being said, Xbox's latest 2023 results did actually beat PlayStation's earnings...but only when we go back to 2018.

Interestingly enough, Microsoft has previously beaten Nintendo in holiday earnings during holiday 2022; Xbox delivered $4.76 billion against Nintendo's $4.73 billion.

We'll have a better picture of the Big 3's results once Nintendo and Sony publish their numbers.

These results also come at a tumultuous time as Microsoft recently laid off 1,900 workers across its entire video games division, with teams in ABK, ZeniMax, and Xbox Game Studios affected.

Previous documents indicate Microsoft wants to achieve "market leadership" by 2030 with an implied $30 billion revenues, and current digital-oriented trends seem to pave the way for this goal. Bethesda has recently made the decision to de-list physical copies of Starfield from Walmart store shelves, and more retailers are dropping Xbox games altogether presumably to further the digital push and to adapt to current market trends in one fell swoop.