Video game publisher Activision Blizzard on Monday beat Wall Street estimates for adjusted fourth-quarter sales thanks to the success of the newest game in its Call of Duty franchise.
A series of launches in October and November, including
Call of Duty: Modern Warfare II, Warzone 2.0And World of Warcraft: Dragonflight from the fantastical world of Azeroth, helped the company catch the attention of the gaming community.
As inflation squeezes American household budgets, more gamers are expected to stick with their favorite game franchises, rather than experimenting with newer titles from other studios, which companies such as Hollywood are keen to do activityhave said analysts.
Modern Warfare II achieved the highest opening-quarter sales in franchise history, surpassing US$1 billion (about Rs.8,275 billion) within 10 days of its launch in late October, the company said.
The company expects its full-year adjusted sales to grow at least in the high-single digits, supported by game launches, including DiabloIV.
Underlying revenue for the quarter ended December 31 was US$3.57 billion (approximately Rs.29,540 crore) compared to analysts’ average estimate of US$3.16 billion (approximately Rs.26,150 crore. ) according to data from Refinitiv.
Activision’s optimistic results follow dismal performances from rival electronics arts And Xbox Manufacturer Microsoft.
Microsoft’s US$69 billion (approximately Rs.5.70,100 crore) acquisition of Activision is being challenged by the US Federal Trade Commission and examined by EU authorities. Activision said the companies are continuing to work with regulators to review the transaction.
The end of Blizzard’s longstanding partnership with China’s second largest gaming company NetEase will deprive players of access to World of Warcraft play in the country until an alternative partnership is formed.
It is expected to hurt the US company’s net bookings by US$250 million (around Rs.2,070 billion) in fiscal 2023, benchmark analyst Mike Hickey wrote in a note last month.
Net income for the fourth quarter fell to US$403 million (about Rs.3,333 billion), or 51 cents a share, from US$564 million (about Rs.4,666 billion), or 72 cents a share, a year earlier.
© Thomson Reuters 2023
