Xbox admits: gaming division stopped growing after Activision acquisition

Microsoft wants to bring Xbox growth back by 2027, betting on affordable hardware, services, and content. This may indicate that the expected acceleration after the acquisition of Activision Blizzard King did not happen.

According to financial results, holiday console sales reached a 12-year low. The last two quarters since the deal have been the weakest.

New Xbox head Asha Sharma stated that the company is betting on daily active users and plans for growth in 2027. Xbox Game Pass prices are also being reviewed, and Xbox's presence on consoles, PCs, and in the cloud is expanding.

In an interview with Game File, Sharma said:

I can't give overall forecasts. We want to see Xbox growth return next year, and we have a lot to work on. There are no magic solutions, and our focus is – how many players play daily in the Xbox ecosystem?

Microsoft spent $70 billion on Activision Blizzard King, and the integration added an average of about $2 billion to Xbox's quarterly revenue. However, the launch of Call of Duty games on Game Pass could have temporarily reduced the brand's value in sales.

It is noted that Call of Duty sales in 2024 fell by $300 million. Former Activision head Bobby Kotick stated that the series "is heading for a result more than 60% lower than last year" due to competition.