It’s worth noting the comparison is against FY25 Q1, the quarter when Activision Blizzard’s results were first reflected in Microsoft’s books. That earlier quarter saw gaming revenue surge by 43%, driven by earnings from franchises like Call of Duty, World of Warcraft, and Candy Crush — yet it also recorded a 29% decline in Xbox hardware revenue.
If you’re an investor, the numbers you’d rather highlight are Microsoft Cloud (up 26%), LinkedIn (up 10%), and Azure (up roughly 40%). Azure spans a broad suite of cloud and AI products, and with growth at that pace it’s easy to see why Microsoft appears more enthusiastic about AI and cloud services than expanding first‑party game development.
Take-Two’s CEO has warned that AI will be “really, really bad” at creating video games and probably couldn’t even devise the GTA 6 marketing plan.
Source: gamesradar.com
