Activision Blizzard’s quarterly revenue steeply declines, but Call of Duty will come to the rescue

Activision Blizzard saw revenue and operating income decline during its second financial quarter of 2022, with revenue of $1.64 billion, compared to the $2.3 billion it earned in the same period in 2021. To recover from that drop, much depends on Call of Duty: Modern Warfare 2 and Warzone 2.0, both of which will be released in the company’s next financial quarter.

With those Call of Duty games right around the corner, that substantial drop probably isn’t causing too much sweat around Activision’s headquarters. It’s fair to say that 2022 Modern Warfare 2 will save the company, as its 2019 predecessor was “the most successful Call of Duty title to date,” according to Activision’s report. The decline in earnings is also consistent with a notable decline in the industry as a whole, which saw a massive 26% growth at the height of the Covid pandemic, according to Ampere data (via CNBC).

The industry has shrunk since then for a number of reasons: there’s a lot of fear of a recession, and both Sony and Microsoft are still struggling to meet demand for their new consoles. Also, the end of the lockdowns has reduced the demand for homebody-friendly entertainment. Closer to Home, Call of Duty: Vanguard did not meet expectationswith Activision Blizzard’s 2021 annual report stating that the company “didn’t deliver as much innovation to the premium game as we would have liked.”

During the second financial quarter, Activision Blizzard games attracted 361 million monthly active users. Interestingly, the company writes that “more than half” of Diablo Immortal’s player base is new to Activision Blizzard games. That makes sense: despite the games blatant microtransactionsit is estimated over $100 millionwith 30 million players.

The report is not surprising. Something notable is that Warzone 2.0 will be “tightly integrated” with Call of Duty: Modern Warfare 2, although that could mean the games will share cross-progression and themed events, much like Warzone and Call of Duty: Vanguard did. Diablo 4 is still slated to launch in 2023, and both World of Warcraft and WoW Classic will be expanded by the end of the year.

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