Activision Blizzard, the American video game publisher in the process of being acquired by Microsoft, recorded plummeting revenues and profits in the second quarter, but better than expected by Wall Street in the context of the economic crisis. The group of Santa Monica (California) achieved 1.6 billion dollars in turnover, down 28% over one year. This is the third quarter in a row that its revenues have declined, and the company said in a press release that this trend will continue during the second half of the year.
Its net profit was $280 million, a fraction of the $876 million in the second quarter of 2021. Its sales halved on console and PC, but rose slightly on mobile, by 5%, to $831 million, especially thanks to Candy Crush. Activision Blizzard mentions that players have spent less time on Call of Duty, one of its successful franchises. The company hopes that the release of a new installment in October will rekindle interest in the shooter. These results left the market unmoved, as analysts expected weaker earnings.
“Despite a difficult economic environment, and while so many companies are announcing a hiring and layoff freeze, our development teams have grown by 25% over one year”, welcomed Bobby Kotick, the boss of the company, quoted in the press release. He recalled recent acquisitions of Proletariat, a studio, and Peltarion, a company specializing in artificial intelligence and automated machine learning. Activision Blizzard has been making regular headlines for a year, when a series of allegations of discrimination and harassment against management led to work stoppages. Since then, employees have mobilized under different banners, including a union, a first within the company.
Microsoft signed an agreement to buy the Californian publisher in January for $ 69 billion, the largest merger and acquisition transaction to have ever taken place in tech. The deal is expected to close by June 2023. In June, the computer giant told New Zealand competition regulators that Action Blizzard had no “essential” video games, “which could raise concerns” .
Sony Worries Players Will Skip PS5 if Call of Duty Becomes Xbox and PC Exclusive
As the world barely recovers from Microsoft’s historic takeover of Activision-Blizzard, Sony is preparing for the worst internally. In any case, this is what a recent document from the firm reveals, which answers questions from the Brazilian competition regulatory authority, which is closely examining this transaction in the same way as several other countries. In its answers, Sony could not be clearer: at present, no game comes close to Call of Duty.
Indeed, the aura of the license goes far beyond the video game sphere. Sony recalls that Call of Duty is the only IP from video games to have climbed into the top 10 of users’ favorite entertainment brands, alongside behemoths like Star Wars and Harry Potter, despite the strong loss of license speed in recent years. In addition, the manufacturer explains that more than 2700 people in total work on Call of Duty, which is much more than in most development studios.
PS5 SALES WILL DROP IF CONSOLE LOSES CALL OF DUTY, SONY SAYS
And it doesn’t stop there: Sony also notes that Call of Cudy has 24 million subscribers on Facebook and 12 million on Instagram. In fact, “Call of Duty is so popular that it influences users’ choice of console, and its community of loyal users is strong enough that even if a competitor had the budget to develop a similar product, it couldn’t compete with it,” the company said.
For the latter, it is very unlikely that players will agree to switch to a license, because they “would lose this familiarity, these skills and even the friends that they made while playing Call of Duty games. While it’s not impossible that Call of Duty will become an Xbox and PC exclusive in the future, Sony has reminded Microsoft that its contract with Activision stipulates that the next three opuses must be cross-platform. For its part, the Redmond firm plays appeasement by saying that it does not plan to withdraw the saga from the PlayStation catalog.
Activision Blizzard publishes plummeting results, but better than expected
These are far from brilliant results, but they are nonetheless “less worse” than expected. Activision Blizzard posted plummeting revenue and profits in the second quarter, but better than Wall Street expected amid the economic crisis.
The video game publisher from Santa Monica (California) achieved 1.6 billion dollars in turnover, down 28% over one year. This is the third quarter in a row that its revenues have declined. The company said in a statement that this trend would continue during the second half of the year.
Activision Blizzard reports earnings in line with expectations
Activision Blizzard, being acquired by Microsoft for 68.7 billion dollars, presented mixed results and in sharp decline. In the second quarter, which ended in late June, the video game publisher’s net profit was $280 million, or 36 cents per share, compared with earnings of $876 million ($1.20 per share). one year earlier. Excluding exceptional items, earnings per share came out at 48 cents, in line with expectations.
Revenue fell 28.4% to $1.644 billion. On an adjusted basis, that is to say excluding deferred revenue, the turnover of the studio publishing the Call of Duty and World of Warcraft series amounted to 1.64 billion dollars while Wall Street was aiming for 1 .57 billion dollars.
Due to the ongoing transaction with Microsoft, Activision Blizzard has not held an analyst conference call and is not providing financial forecasts.
Activision Blizzard: accounts without relief, before the finalization of the takeover by Microsoft
Activision Blizzard, the American video game publisher known in particular for Call of Duty, World of Warcraft or Candy Crush (King label), announced yesterday evening for the quarter ended revenues above expectations, but adjusted sales down sharply year-on-year . The group, about to be acquired by Microsoft for 69 billion dollars, therefore achieved quarterly adjusted revenues of 1.64 billion dollars, compared to a consensus of 1.6 billion and a level of 2.3 billion a year before. This is the third consecutive quarter of year-on-year sales decline. Adjusted earnings per share were 48 cents for the period ended, down more than half year-on-year, but in line with market consensus. The group has nevertheless strengthened its development teams by 25%.