Activision Blizzard Sales Fall on Weak Call of Duty Release
Activision Blizzard Inc., the biggest US video game publisher, reported revenue that beat analysts' estimates, but adjusted sales declined 15% from a year ago due to a soft Call of Duty launch last fall and a slow year for the gaming industry overall.
Activision, which is in the process of being acquired by Microsoft Corp., brought in adjusted revenue in the second quarter of $1.64 billion, compared with the average analyst's projection for $1.6 billion. Adjusted revenue excludes deferred sales from online purchases. Adjusted earnings per share were 47 cents, almost 50% lower than a year earlier and slightly below analysts' estimates, according to data compiled by Bloomberg.
Last fall's Call of Duty Vanguard, which Activision said hasn't performed as well as anticipated, has had a ripple effect on the company's fiscal year. The game received negative reviews and faced stiff competition from new entries in the popular Halo and Battlefield series.
During the second quarter, Activision's Blizzard division released Diablo Immortal, a new mobile entry in the action series. Activision's Chinese partner NetEase Inc. delayed Diablo Immortal's launch in the world's biggest mobile app market by about a month, saying it needed additional time. It was finally released on July 25. Activision didn't give revenue figures for the new Diablo game on Monday.
The video game industry has faced a sluggish year as it deals with hardware supply chain issues affecting consoles, inflation and a lack of big hits. Interest in gaming has also cooled off as pandemic stay-at-home orders lifted and people resumed outside interests and activities. Spending in the video game industry is expected to drop 8.7% this year, according to a report from the
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