Microsoft FY24 Q1 Earnings - (Software up 13%, Hardware down 7%, Best Q1/Non-Holiday Quarter for Xbox)

[vixolus]

Nadella on Gaming:

- Delighted to close the acquistion of ABK. Will advance their goal of bringing games to everyone on any endpoint.
- Set record of Game Pass hours played this quarter.
- More than 11M players of Starfield. Nearly half of hours were on PC. Most subscribers added to Game Pass in a single day, ever.
- Minecraft sold >300M copies now.
- 13 $1B+ franchises now with Candy Crush, Diablo, Halo, Warcraft, Gears of War, Elder Scrolls, etc.
- One of the strongest holiday first-party lineup ever incoming with COD:MW3, Forza Motorsport, etc.

 

[vixolus]

Amy Hood on Guidance for the More Personal Computing/Gaming segment for Q2:
- Includes net impact from Activision Blizzard acquisition.
- Devices revenue decline in mid teens (includes Windows PCs here) as they focus on higher margin areas.
- Revenue growth in mid-high 40s. Includes roughly 35 points of net impact from Activision acquisition. And includes adjusting from 3rd to 1st party for Activision content.
- Xbox Content + Services revenue growth in mid-high 50s, driven by roughly 50 points from the Activision acquisition.

"As we add net impact of Activision.. we continue to expect operating margins to remain flat YoY" (Company wide guidance)

Sounds like they were expecting mid to high single digits revenue growth for Holiday sans Activision.