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Activision Blizzard Revenue Plunges Alongside Call Of Duty Demand

Activision Blizzard reported a drop in sales during their first quarter as interest in the Call of Duty (CoD) franchise declines. The company has seen a 22.3% decrease in sales, due to in part weaker sales in the latest game in the CoD series, Call of Duty: Vanguard. The active player base for their once incredibly popular free-to-play Call of Duty: Warzone has also declined.

The 1st quarter of 2022 saw Activision Blizzard report a profit of US$395 million, down from US$619 million the previous year.

Activision Blizzard have been under the pump over the last few years, following widespread claims of sexual misconduct. CEO Bobby Kotick was aware of the accusations but failed to inform the board. This resulted in lawsuits and federal investigations that led to an increased decline in company reputation.

The company had also struggled to deliver successful games, with the latest in the Call of Duty franchise being met with disinterest, while their almost two decade old MMO, World of Warcraft has become increasingly less popular thanks to confusing and uninteresting expansions and increased subscription costs.

Credit: IGN Poland

Microsoft agreed to purchase Activision Blizzard in January this year for US$95 a share, with the attempt to increase their standing in the gaming market and expand on their cloud-gaming service. The deal has been approved by the boards of both companies, and is set to close midway through next year. Accounting for the companies decline in sales and net cash, Microsoft have agreed to pay $69 billion instead of the initial offering of $75 billion.

 



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