Activision Blizzard has launched its latest earnings reportshedding light on the gaming giant’s performance amid its pending acquisition by Xbox company, Microsoft.
For the three-month period ended March 31, Activision Blizzard earned $2.38 billion in revenue and posted a profit of $740 million. For comparison, during the same period last year, Activision Blizzard made $1.76 billion in revenue and $395 million in profit. In short, business is booming. Activision Blizzard also reported having $9.236 billion in cash and cash equivalents on hand.
Activision Blizzard made most of its money from its mobile gaming division, King, which brought in $739 million during the quarter. This compares to $580 million from Activision and $443 million from Blizzard. In terms of platform revenue, mobile was number 1 for Activision Blizzard during the period, reaching $956 million. PC followed with $666 million and console trailed behind with $639 million. When it comes to digital vs. physical, Activision Blizzard got a whopping 91% of its revenue, or $2.157 billion, from digital channels, at $104. million (or 4%) from retail. The “Other” category generated $122 million, or 5% of revenue for the period.
With mobile being Activision Blizzard’s largest platform by revenue, it makes sense that the company would be bring each of your franchises to mobile devices. Part of the reason Microsoft wants to buy Activision Blizzard is to gain a foothold in the lucrative mobile gaming market.
Activision benefited from strong Call of Duty sales, with sales of premium games in the Call of Duty series during the first quarter jumping “significantly” compared to the same period last year thanks to the success of Call of Duty Modern Warfare 2. Additionally, spending on Call of Duty games for console and PC grew “strongly” year-over-year, Activision said. The company went on to reiterate that it will release a “full” Call of Duty game this year, but the title remains to be officially announced.
For Blizzard, the release of the World of Warcraft: Dragonflight expansion in November 2022 continued to bear fruit. Blizzard said that subscriber retention in the West was higher than ever at this stage after the release of a modern World of Warcraft expansion. The King division saw in-game spending increase by 11%, thanks mainly to the Candy Crush series.
In terms of monthly active users, Activision reported 98 million, Blizzard 27 million, and King 243 million, for a total of 368 million. This compares with 372 million in the same period last year. Only Activision and King saw year-over-year declines for monthly active users; Blizzard reported earnings.
Activision Blizzard shareholders received some bad news today, April 26, as the UK government announced that it would not allow Microsoft’s purchase of the company to go through. Microsoft and Activision Blizzard plan to appeal. For more information, check out GameSpot’s breakdown of what happens next.
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