Activision announced its financial results for the second quarter of 2022, corresponding to the period between April 1 and July 30.
Today Activision Announced its financial results for the second quarter of calendar year 2022, corresponding to the period between April 1 and July 30.
We heard that both Activision and Blizzard’s revenue and operating income (profit) fell year-over-year due to lower participation from the Call of Duty and World of Warcraft franchises.
This was partially offset by the improved performance of Hearthstone and the contribution brought by the release of Diablo Immortal.
That said, results were higher than in the first quarter on all fronts.
The press release comes with traditional commentary from Activision Blizzard CEO Bobby Kotick, who discussed the acquisition of developers Proletariat and Peltarion and mentioned that the company hopes to close the acquisition by Microsoft as soon as possible.
“Our acquisitions this past quarter of Proletariat and Peltarion further boost our development resources, including our AI and machine learning capabilities. Even in a challenging economic environment, with so many companies announcing hiring freezes and layoffs, our development headcount grew 25% year over year at the end of the second quarter. Our talented teams plan to release exciting new content for Call of Duty, World of Warcraft, and Overwatch later this year. Of course, we look forward to completing our pending $95 per share all-cash transaction with Microsoft as soon as possible.”
By the way, the company confirms that the acquisition is expected to be completed during Microsoft’s fiscal year, which ends June 30, 2023, but does not provide further details on the timeline.
We also heard an increased commitment to “becoming the most welcoming and inclusive company in the industry.”
“Activision Blizzard remains committed to becoming the most welcoming and inclusive company in our industry, and continues to implement previously announced initiatives to strengthen our practices and policies. In the second quarter, we added experienced DE&I leaders in key positions across the organization. In July, the company launched Level Up U, a 12-week program that prepares talented people from inside and outside the industry to become full-time game developers. Level Up U is the first major program funded through a $250 million, 10-year investment announced last October to accelerate opportunities in gaming and technology for underrepresented communities.”
We then read a list of highlights illustrating the games’ performance and publisher’s marks.
Activision has the next Call of Duty: Modern Warfare II, defined as “The most ambitious release so far in the entire franchise”.
Diablo IV is confirmed for 2023, and we also boast about the performance of Diablo Immortal.
- The fourth quarter will mark the beginning of a new era for the Obligations franchise. Anticipation is high for Call of Duty: Modern Warfare IIplanned for release on console and PC on October 28. The 2019 sequel Modern warThe most successful Obligations title to date, will lead the most ambitious launch yet in the entire franchise. a new call of duty: war zone 2.0 The experience, tightly integrated with the premium game, will be released as an extension to the Modern war universe later this year.
- Activision’s expanded studios also continue to make great strides in an innovative mobile experience that will spread war zone to the largest and fastest growing platform. Via Obligations ecosystem, the teams are well positioned to support these releases with substantial live operations while continuing the development of new premium content planned for 2023 and beyond.
- Activision’s second quarter segment revenue and operating income decreased year-over-year, reflecting a lower commitment to the Obligations franchise, but grew compared to the first quarter. Obligations net pre-orders across console and PC grew sequentially in Q2, following improvements to gameplay and seasonal content across Call of Duty: Vanguard Y call of duty: war zone which were well received by the players. net reserves for mobile call of duty were consistent with the first trimester.
- Launching in June immortal devildeep and authentic Devil experience designed for the mobile platform, ushered in a substantial content release across key Blizzard franchises. immortal devil received high ratings from gamers in mobile app stores around the world and reached the top of game download charts in more than 100 countries and regions after its release. More than half of the game’s player accounts to date are new to Blizzard. The game was ranked in the top 10 highest grossing games on the US app stores for the month of June.
- Devil IVthe next-gen installment of the genre-defining series, it will launch for PC and consoles in 2023. The title will support cross-play and cross-platform progression, and is designed to be the foundation of an engaging live service. , providing continuous storytelling and new content for many years.
- In the warcraft franchise, Blizzard plans to offer an unprecedented level of WoW content in the coming months, with Wrath of the Lich King Classic Launching on September 26 and World of Warcraft: Dragonflight, the groundbreaking next expansion for the modern game, scheduled for release later this year. Blizzard is committed to increasing its development resources to meet and exceed the expectations of its community, and at the end of the second quarter significantly strengthened its world of warcraft team through the acquisition of Boston-based studio Proletariat.
- During the second quarter, Blizzard released Warcraft: Arclight Rumble™, an action-packed mobile strategy game that gives new and existing fans an entirely different way to experience the Warcraft universe. Public testing of the game is underway in select regions.
- surveillance 2 is scheduled to launch in early access for PC and consoles on October 4. With a live free service model designed to provide frequent and substantial seasonal updates, this release kicks off the next chapter of the acclaimed team-based action game.
- Blizzard’s second quarter segment revenue and operating income were lower year-over-year, but higher than the first quarter. world of warcraft net bookings decreased versus a prior year quarter that included the launch of Burning Crusade Classicoffsetting the year-on-year growth of Hearthstone and the contribution of the launch in June immortal devil.
- King’s segment revenue and operating income grew year-over-year, driven by candy crush, King’s largest franchise. King’s in-game net bookings were up 6% year-over-year, reflecting strong execution in live trading and user acquisition.
- King continues to increase the frequency and depth of seasonal content and introduces more player versus player features within candy crush, driving growth in player engagement and investment. Time spent at Candy grew again year over year, the number of franchise payers grew by a double-digit percentage year over year and candy crush it was the highest-grossing game franchise in the US app stores.1 for the twentieth consecutive quarter.
- King’s advertising business grew more than 20% year-over-year, despite intensifying macroeconomic headwinds during the quarter, as the team continued to carefully increase ad volume across the King network.
- In June, King acquired software company Peltarion to accelerate its use of artificial intelligence and machine learning technology to deliver even more engaging content to its community.