Activision Blizzard reported second-quarter net revenues of $1.64 billion, beating analysts’ estimates of $1.59 billion but representing a steep decline from the $2.3 billion for the same period last year.
The company recorded a 15% year-over-year decline in adjusted sales, primarily attributed to a soft “Call of Duty” launch last fall. The gaming industry is slowing down as lockdowns lift — Activision Blizzard recorded a fall in active users from 372 million in the first quarter to 361 million in the second.
Activision Blizzard still reported some wins.
- The company launched “Diablo Immortal” in June and claims that more than half of the game’s player accounts to date are new to Blizzard.
- The company’s King segment recorded a 6% year-over-year increase in net bookings and a 20% year-over-year increase for its advertising business. “Candy Crush” was the top-grossing game franchise in U.S. app stores for the 20th successive quarter.
“Even in a challenging economic environment, with so many companies announcing hiring freezes and layoffs, our development headcount grew 25% year-over-year as of the end of the second quarter,” Activision Blizzard CEO Bobby Kotick said.
Microsoft is set to acquire Activision Blizzard for $68.7 billion, pending regulatory review.
Activision Blizzard has several releases planned for the second half of 2022, including “World of Warcraft,” “Call of Duty,” and “Modern Warfare II” — the sequel to the most successful “Call of Duty” title to date.