- Microsoft is behind gaming giants like Sony and Tencent.
- However, Activision Blizzard’s acquisition is a turning point for its gaming business.
- An analysis predicts that Xbox will now report better revenue figures compared to PlayStation since Activision Blizzard is such a massive force in the industry.
In recent years, PlayStation has stayed ahead of Xbox when considering gaming revenue. While giants like Tencent have led the charts, Xbox is poised to gain some ground after its acquisition of Activision Blizzard.
This merger will change the gaming landscape as we know it. According to an analysis firm, Xbox will surpass PlayStation in terms of gaming revenue after combining its figures with Activision’s.
Why it matters: The gaming industry is expected to become more competitive due to the shift in landscape, as Sony is likely to make significant efforts to close the gap with Microsoft.
While Activision and Microsoft reported separate revenue figures this Fiscal Year, the analysis report has provided a hypothetical figure combining both companies.
When these are combined, Xbox leads PlayStation in terms of game revenue in H1 2023. This would put Xbox just behind Tencent as the second-biggest player in the industry.
Tencent would still lead the chart with a revenue of $15.4 billion. As one of the biggest conglomerates in the industry, it has investments in the likes of Epic Games and owns games like League of Legends.
Still, combining Activision Blizzard’s revenue with Xbox would result in an impressive figure of around $10.4 billion. On the other hand, the report states PlayStation generated around $8 billion in revenue in H1 2023.
One caveat in this analysis is that it does not consider hardware revenue. Therefore, console sales from Xbox and PlayStation are not counted.
Activision Blizzard has an edge over the likes of PlayStation and Xbox because of its presence in mobile gaming. Through games like Call of Duty Mobile and Candy Crush Saga, it generated $4.4 billion in H1 2023.
Therefore, the Xbox merger has a lot of potential. Phil Spencer also aims to break into the mobile market in 2024 and beyond.
Nonetheless, future competition between Xbox and PlayStation will be quite interesting.
2024 could mark the first time PlayStation falls behind in terms of gaming revenue. The gaming giant also noted a 9% increase in revenue in FY24 Q1, and it expects to grow further next year.
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