Activision Blizzard failed to meet expectations with its latest earnings report on Monday.
The California-based video game publisher generated $1.8 billion in revenue in Q1 2022, compared to $2.3 billion for the same period a year prior.
- It reported $642 million in operating cash flow, compared to $844 million in Q1 2021.
- Monthly active users reached 372 million, down from 435 million in Q1 2021.
Activision attributed its lackluster results to the underwhelming launch of “Call of Duty: Vanguard,” due to competition from other publishers and an average reception from gamers.
The publisher will release its latest addition to the “Call of Duty” franchise this year but will take a break in 2023 to focus on building its live services businesses, according to Bloomberg.
It will mark the first time “Call of Duty” will be without an annual release in nearly two decades.
In March, Activision reached an $18 million settlement with the U.S. Equal Employment Opportunity Commission after several sexual harassment and discrimination lawsuits.
Last week, the company learned it is no longer facing a class-action lawsuit that claimed it misled investors regarding similar allegations, but it is still facing an ongoing investigation.
The investigation could stand in the way of Microsoft’s deal to acquire Activision for $68.7 billion. The deal, announced in January, is currently under regulatory review.