The gaming giant Activision Blizzard has reported a significant increase in profits for the first quarter of 2023, even as it prepares for a takeover by Xbox owner Microsoft. The company saw $2.38bn in revenue and recorded a profit of $740m between January and March, up from $1.76bn in revenue and $395m profit over the same period last year. The vast majority (91%) of its revenue came from digital channels, with mobile games unit King accounting for the largest percentage of earnings at $739m for the quarter.
Mobile revenue largest for Activision Blizzard
The Q1 results showed that Activision’s Call of Duty series has enjoyed significant sales in premium games sales for the console, along with strong in-game spending among players. Blizzard, meanwhile, saw a rise in subscriber retention following the November 2022 launch of World of Warcraft expansion Dragonflight on console and PC. King, known for its popular Candy Crush series, experienced an 11% rise in in-game spending.
Mobile was the single biggest contributor to Activision Blizzard’s latest profits, bringing in $956m compared with $666m for PC and $639m for console. In total, 372 million people played games developed by Activision Blizzard in the first quarter of 2022, although the company saw a year-on-year decline in monthly active users for both Activision and King, with Blizzard seeing a gain.
Microsoft acquisition looming
Activision Blizzard’s pending acquisition by Xbox parent company Microsoft is due to be completed this year. Microsoft is keen to enter the mobile games market and offered $68.7bn for the takeover of Activision Blizzard.
What’s next for Activision Blizzard?
Activision Blizzard plans to take advantage of the prevalence of mobile gaming and bring some its most successful franchises to mobile. The company has invested heavily in mobile gaming, with King being its most successful unit. The launch of a “fully-fledged” Call of Duty Game is also planned for later this year, although details remain undisclosed at this stage.
- Activision Blizzard made $2.38bn in Q1 2023, compared with $1.76bn in 2022.
- Mobile was the biggest platform by revenue, accounting for $956m.
- Activision benefited from strong Call of Duty sales, including rising in-game spending.
- Blizzard enjoyed a retention increase following the release of World of Warcraft: Dragonflight.
- King experienced a rise in Candy Crush in-game spending by 11%.
- Activision, Blizzard and King reported 98m, 27m and 243m monthly active users in Q1 2023, respectively.
- Activision Blizzard is to bring many of its successful gaming franchises to mobile.
- A full Call of Duty game is scheduled for launch in 2023.
- Xbox parent company Microsoft has acquired Activision Blizzard in a deal due to conclude in 2023.
All eyes are on Activision Blizzard as the gaming company continues to thrive in the developing mobile market.
