Microsoft’s acquisition of Activision Blizzard is not expected to close until 2023, but its gaming division is already seeing excellent results.

Xbox had its best sales month ever in March, topping its previous record from March 2014.

• Hardware sales reached $515 million in March and $1.2 billion in the first quarter, with the Xbox Series leading in both timeframes.
• Nintendo was the leader in total consoles sold. 
• Supply chain issues were a factor for Sony’s PlayStation, which struggled to meet demand.

Microsoft’s $75 billion acquisition of Activision Blizzard has a number of hurdles to clear. The deal is receiving regulatory scrutiny and is complicated by the gaming giant’s legal challenges. 

Earlier this month, two prominent California government lawyers resigned in protest, saying that Gov. Gavin Newsom meddled in the case in Activision’s favor.

Big Quarter

Microsoft posted $41.7 billion in revenue in the first quarter of the year, up 18% year-over-year, led by 46% growth in cloud service revenue. 

Xbox content and services revenue rose 4% year-over-year, helping the company’s More Personal Computing segment collect $14.5 billion in the quarter.

Microsoft is hiring a manager to evaluate potential gaming acquisitions, leading to speculation that the company is looking to grow its gaming portfolio.

Microsoft beat earnings expectations, and its stock rose around 2% in after-hours trading on Tuesday.

The NFL Draft begins Thursday in Las Vegas, and two years after it was originally supposed to host, Sin City estimates it will bring in as many people as the 2019 edition in Nashville — or more.

It’s also worth noting that Nashville was the last live draft before the pandemic. 

“We are confident Las Vegas’ tourism industry will set a new standard in hosting NFL events while breaking attendance records,” said Virginia Valentine, president and CEO of the Nevada Resort Association. 

The three-day event is being held at the Bellagio, but watch parties are taking place across the city, including at Circa Resort & Casino — the world’s largest sportsbook. 

Predominant sports figures will likely bring in even more people, as indicated by scheduled events hosted by Rob Gronkowski and Rich Paul.

Narrowing Down Numbers

The City of Las Vegas projects the number of attendees will be close to that of Nashville, which brought in an estimated 600,000 people for the weekend.

• Nashville’s economic impact from direct and indirect spending was thought to be around $223.9 million. Whether Las Vegas brings in more people or not, it has the ability to accommodate them — Nashville has more than 53,000 hotel rooms, while Las Vegas has roughly 150,000.
• Philadelphia’s economic impact from the 2017 draft was $95 million, and the next year, the Dallas area reported $125 million. Last year, Cleveland’s economic impact was $42 million.

But with no historical data from The Strip, it’s hard to know just how many people will show.

There’s a new sport with billion-dollar team valuations: cricket.

Indian Premier League clubs have seen an annualized growth rate of 24% in just over a decade, according to Forbes. That’s more than both the NBA and NFL, which have seen 16% and 10% growth rates, respectively.

• Of the league’s 10 teams, the Mumbai Indians have the highest valuation at $1.3 billion.
• Seven teams are worth at least $1 billion.
• The lowest valuation, the Gujarat Titans, are still worth $850 million.

Forbes attributes the high numbers to explosive viewership in India, as well as a business model that yields high revenues and low costs.

The current media rights deal with Star India, part of Walt Disney, is worth around $2.4 billion each year. But the next deal could be worth more than twice that number.

Private Equity Interest

The highly valued teams have caught the eye of private equity firms investing in other areas of the sports world. 

Last year, RedBird Capital purchased a 16% stake in the Rajasthan Royals. And last October, CVC Capital Partners put in a bid, too. It currently owns the Titans, for which it reportedly paid about $750 million.

A former investor in the Minnesota Vikings and the now-defunct Alliance of American Football has pleaded guilty to charges related to a $600 million cryptocurrency scheme. 

Reginald Fowler has entered an “open plea” in Manhattan federal court. Fowler will plead guilty to wire fraud, conspiracy to commit bank fraud, and operating an unlicensed money-transmitting business.

Prosecutors alleged that he facilitated unregulated transactions worth millions of dollars on behalf of several cryptocurrency exchanges, telling banks they would process as real estate transactions.

Fowler, who once attended training camp with the Cincinnati Bengals and played in the USFL, attempted to buy a stake in the AAF using illegally obtained funds, which contributed to the league shuttering operations in April 2019, before its first season ended.

• Fowler originally committed $170 million to the AAF in 2019, per Action Network.
• He later invested just $28 million in the league before it ceased operations. 

Fowler initially planned to plead not guilty following his arrest in April 2019 but changed his stance after facing a maximum of 90 years in prison. He later rescinded an offer in January 2020 from prosecutors that included a guilty plea to a single count, but required him to forfeit up to $371 million. 

After Fowler refused to accept the deal, federal authorities added more charges.

NFL Ownership

Fowler attempted to acquire the Vikings for $600 million in 2005 but failed to provide the necessary capital. Fowler later settled for a minority stake in the team, which he relinquished in 2014.