Microsoft Ranked as the Leading Video Game Publisher Last Month

In December 2024, Microsoft emerged as the leading force in the world of video game publishing, raking in an impressive $465 million in revenue. This success largely stems from the company’s acquisition of gaming giant Activision Blizzard. Notably, Call of Duty: Black Ops 6 played a significant role in boosting Microsoft’s fortunes during this period.

While recent chatter in the gaming world often revolves around hardware from Nintendo and PlayStation, Microsoft and its Xbox brand have quietly excelled in the software department. Their approach of acquiring studios and making games available on various platforms has clearly been a winning strategy. Although Xbox consoles and accessories haven’t had their best days, with a notable 29% drop in hardware sales in the last fiscal quarter and a drastic 42% year-over-year decline in 2024, Microsoft’s broader gaming business remains on an upward trajectory, largely thanks to a strong showing in software and services. This trend is expected to persist into the coming year.

According to insights shared by analysts at Ampere and covered by VGC, Microsoft’s games generated nearly $465 million in December alone, surpassing second-place publisher EA by almost $100 million. This remarkable achievement is primarily due to the massive appeal and sales of Activision Blizzard’s Call of Duty franchise, which reached over 500 million copies sold throughout 2024. Since Microsoft’s acquisition of Activision, all Call of Duty sales and associated DLCs, regardless of which console they’re played on, contribute to Microsoft’s profit margins. Ironically, 64% of December’s spending on Microsoft titles came courtesy of PlayStation users, highlighting a surprising source of their revenue.

The dominance of Call of Duty: Black Ops 6 can’t be understated in Microsoft’s December achievement. This popular title not only drew a vast user base to its game launcher but also spurred sales across Xbox, PC, and PlayStation, allowing Microsoft to extend their reach well beyond their traditional console market. This strategy of acquiring studios without exclusive games for Xbox is proving to be lucrative, and it seems Microsoft has no intentions of slowing down this approach, as suggested by Xbox boss Phil Spencer, who mentioned future acquisitions are on the horizon.

While other gaming companies are putting significant effort into exclusive titles and new hardware, Microsoft’s unique direction appears to be paying dividends. This is particularly welcome news as forecasts suggest Xbox might lag behind Nintendo and PlayStation in the next generation of consoles when it comes to system sales. However, if Microsoft continues to succeed in the publishing sector as it currently does, it may very well compensate for any shortfalls in console competitiveness.