Activision Blizzard made $1.64 billion in sales in the second fiscal quarter of 2022, down from the $2.3 billion it earned in the same quarter the year before. A lot will depend on Call of Duty: Modern Warfare 2 and Warzone 2.0, both of which will be released in the company’s upcoming fiscal quarter, to recoup from that decline.
That significant decline surely isn’t raising too many eyebrows at Activision HQ because those Call of Duty games are just around the way.
Given that its 2019 predecessor was “the most successful Call of Duty title to date,” according to Activision’s assessment, Modern Warfare 2 will likely be profitable for the corporation in 2022.
The earnings fall is also consistent with a major decline in the sector as a whole, which, according to Ampere data via CNBC, had a significant 26 percent growth at the height of the Covid epidemic.
Since then, the sector has shrunk for a variety of reasons, including widespread recessionary anxieties and the fact that Sony and Microsoft are still having trouble keeping up with demand for their new consoles.
The demand for lockdown-free entertainment has also decreased since they are no longer necessary. Locally, Call of Duty: Vanguard fell short of expectations, as noted in Activision Blizzard’s 2021 annual report: “We didn’t bring as much originality in the premium game as we would have hoped.”
Three hundred sixty-one million monthly active users played Activision Blizzard games during the second fiscal quarter. It’s interesting to note that “almost half” of Diablo Immortal’s player base is brand-new to Activision Blizzard games, according to the firm.
That makes sense considering that despite the game’s outrageous microtransactions, it is reported to have grossed over $100 million from 30 million users.
Towards the end of the fourth quarter of the fiscal year, when both Warzone 2 and Call of Duty: Modern Warfare 2, which is anticipated to be on October 28, will be launched, the firm is optimistic about a considerable improvement in its market performance.