Activision Blizzard, one of the biggest video game publishers in the world, has reported disappointing sales figures, largely as a result of the lukewarm reception to the Call of Duty: Vanguard, which was released last year.
Whilst the company’s reported revenue did exceed analysts’ estimates, adjusted sales still sat 15% lower than what they were a year ago. Second quarter revenue for the company sat at $1.64 billion USD ($2.33 billion), just scraping over analyst estimates of $1.6 billion USD ($2.28 billion AUD). Adjusted earnings per share are still about 50% lower than a year ago and a bit below analyst estimates, sitting at 47c (0.67 AUD) per share.
The Call of Duty series is usually a money printer for the publisher, with the entire series selling over 400 million premium games, and the 2019 release of Call of Duty: Modern Warfare earning over $1 billion USD ($1.42 billion AUD) in revenue by December 18th, 2019, after it was released only two months earlier on the 25th of October.
In comparison, Call of Duty: Vanguard underperformed according to Activision, with it’s messy launch and negative reviews still having a negative effect on Activision’s fiscal year. Furthermore, whilst the company blame the poor sales on the WWII setting and a lack of innovation, and users reported a clunky campaign, rushed and lackluster zombies’ mode and massively delayed seasonal content, users are also spending less time on their consoles as global COVID-19 lockdowns end.
Activision-Blizzard, who are currently in the process of being acquired by Microsoft, have also been plagued by accusations of sexual misconduct and abuse within their teams, only further ruining their reputation as a company. Since the acquisition announcement in January, Activision stock price has increased roughly 20%, but still considerably lower than the $95 USD ($135.23 AUD) share offer price, creating uncertainty on whether the transaction will go through. The deal is also being analyzed by anti-trust and competition watchdogs, who have questioned whether the deal will be a threat to industry competition.
Activision are set Call of Duty: Modern Warfare 2 later in the year, but will skip a 2023 release, marking the first missed year in almost 20 years. The company will instead focus more on supporting the one title and providing a better quality and long experience.