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Loss of Activision Blizzard revenue targets by reducing Call Of Duty sales

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Activision Blizzard’s recent quarterly financial report shows that sales of the new Call of Duty game fell short of expectations, leading to a drop in the company’s annual revenue from 2020.

Activision Blizzard’s first financial performance report since the announcement of Microsoft’s takeover was released today, detailing the last quarter of the company’s fiscal year with investors and fans. Activision Blizzard’s $ 68.7 billion deal with Microsoft is still a few months away from completion, and both parties need the approval of shareholders and anti-monopoly regulators to complete the deal. So Activision Blizzard is now reporting on its financial performance as an independent company.

According to Activision Blizzard executives, this time it has failed to meet the analysts’ predicted goals for this period. The publisher of Call of Duty games, Warcraft and several other big IPs, in the fourth quarter of its fiscal year, made a profit of $ 1.25 per share and earned a total of $ 2.49 billion in earnings. Analysts at Investing had forecast earnings of $ 1.31 per share (EPS) and a combined $ 2.83 billion in profitability for the company.

Activision board at the company's financial conference

Thus, the company’s revenue has decreased by about $ 560 million compared to the same period in 2020. The company’s in-game revenue also fell by $ 60 million to $ 1.24 billion. The total number of active users of Activision Blizzard games has reached 371 million users in the last quarter.

Regarding the company’s performance during a calendar year, we should mention the net income of $ 8.35 billion, which was $ 8.42 billion less than this date in 2020. In-game revenue, however, has increased from $ 4.85 billion in 2020 to $ 5.10 billion.

Although the new Call of Duty game has been named one of the biggest new games of 2021 in terms of sales, but the annual comparison of the publisher’s most lucrative game on PC and console shows a drop in sales. The company generally stated that Call of Duty: Vanguard had lower sales than Black Ops Cold War, and that user participation in Call of Duty: Warzone had declined. But their in-game revenue rates on PC and consoles are still higher than in March 2020, before Warzone was released.

New Call of Duty game poster

According to new reports, Infinity Ward Studios is responsible for making this year’s Call of Duty game. According to Activision Blizzard officials, the studio is “working on the biggest and most ambitious game in the series’ history, with leading innovation in the gaming industry and creating an engaging work.” Of course, this information is a lot to rumor about making a new episode of the reboot of the Modern Warfare series Does not add.

On the other hand, Call of Duty Mobile game It has contributed significantly to the lack of revenue of this series in PC and gaming consoles. Last year, players spent more than $ 1 billion on the Call of Duty mobile game to increase the game’s net revenue compared to the previous year.

But on the Blizzard side, Hearthstone’s net income Compared to the previous year, sales increased Diablo II: Resurrected A few months after its release, it was even higher than all Activision Blizzard remasters. Blizzard also plans to play big games with new experiences. Warcraft and the continuation of the development of Diablo and Overwatch games. In addition, a new and unannounced IP is under construction in the studio.

Poster for the purchase of Activision Blizzard by Microsoft

In addition, The King’s division of the company’s mobile business continues to generate revenue. The amount of in-game expenses of users in the company’s mobile works has increased by 14% compared to the previous year to set a new record. The company’s total revenue from mobile games is 60 percent higher than the previous year, and the number of players has grown by a double-digit percentage compared to the previous year.

Given that Microsoft’s acquisition of Activision Blizzard is under review, the company did not host the conference and will present its financial report in absentia. This is usually the case when a transaction is taking place, which means that we will not be provided with information about the plans before them.

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