Activision Blizzard Announces Q3 2022 Financial Results

[Stoy]

Activision Blizzard Announces Q3 2022 Financial Results
Activision Blizzard, Inc. (Nasdaq: ATVI) today announced third quarter 2022 results.

General Metrics

• Activision Blizzard’s net bookings were $1.83 billion, as compared with $1.88 billion for the third quarter of 2021.
• In-game net bookings were $1.36 billion, as compared with $1.20 billion for the third quarter of 2021.
• Activision Blizzard Monthly Active Users were 368 million.

Microsoft Transaction

• The transaction, which is expected to close in Microsoft’s fiscal year ending June 30, 2023, has been approved by the boards of directors of both Activision Blizzard and Microsoft and by Activision Blizzard’s stockholders.

Activision and King Highlights

• Call of Duty: Modern Warfare II has broken records as the fastest-selling title in the history of the Call of Duty franchise.
• Candy Crush franchise again delivered a record performance.

Blizzard Highlights

• Overwatch 2
  
  • Overwatch 2 had over 35 million people played the game in its first month, including many who were new.
  • Blizzard is looking forward to delivering an ambitious slate of regular seasonal updates for Overwatch 2 that introduce new characters, maps and modes, including the game’s much-anticipated PvE mode planned for 2023.
• Warcraft
  
  • World of Warcraft: Wrath of the Lich King Classic contributed to a strong increase in WoW reach and engagement at the end of the third quarter.
  • On November 28, Blizzard will release World of Warcraft: Dragonflight, the innovative next expansion for the modern game, as the team increases the cadence of WoW content for the community.
  • Warcraft franchise net bookings were stable year-over-year.
  • Mobile title Warcraft: Arclight Rumble is progressing well through regional testing.
• Diablo
  
  • Diablo Immortal expanded its global reach with a strong launch in China in July. The title reached the top of the download charts and has ranked in the top 10 grossing mobile games in China since launch.
  • Around the world, Diablo Immortal is being supported with major new content, features, and events aimed at keeping the community engaged.
  • Work on Diablo IV and its substantial ongoing post-launch content continues to progress very well ahead of its launch planned for 2023.
  • Blizzard’s third quarter segment revenue grew double-digits year-over-year against a year ago quarter that included the release of Diablo II: Resurrected.
• Chinese Market
  
  • Currently, Blizzard has licensing agreements with a third party covering the publication of several Blizzard titles in China that expire in January 2023. They are in discussions regarding the renewal of these agreements, but a mutually-satisfactory deal may not be reached.

[Loutzi]

Suspiciously silent about Diablo Immortal Profits outside of China. I guess western audiences weren't too happy about it after all, who would have thought...

[SNES-1990]

This is why they added the 1-year subscription rewards a few days ago.

[Varanus]

Suspiciously silent about Diablo Immortal Profits outside of China. I guess western audiences weren't too happy about it after all, who would have thought...

Well from personal experience. Out of my entire friends list. I have seen 3 people play it. And only 1 of them since the first week of its release.

[owbu]

That last sentence is very interesting. Never read anything negative in a Financial Report that wasn't rephrased in a way that made it sound actually totally great.
Apparently there are limits about how much you are allowed to do that :>

[Relapses]

NetEase falling out with Blizzard would be enormous. Yikes.

[Nzx]

This is why they added the 1-year subscription rewards a few days ago.

You guys are like pull-a-lever quote machines.

Not having an annual subscription option would be a fucking terrible business decision, for any company with a subscription product. Subscription's major cons are that your income stream isn't guaranteed month to month, but the pro is that a user might pay and never use their access during the month, meaning they cost you nothing to serve and were pure profit. Not only that, but for most people it's literally something for nothing because they're going to pay 12 monthly subscriptions anyway, and this way they get some money off every month and some shit for free.

I find it legit hilarious how many people on this forum think they know how one of the largest companies on the planet operates just because they use one of their products. Imagine spending your time posting on the internet about how 'desperate' McDonalds are because they're running Monopoly again this year.

[Yakut]

Imagine spending your time posting on the internet about how 'desperate' McDonalds are because they're running Monopoly again this year.

Most people are the equivalent of armchair quarterbacks on forums. That's rather amusing as almost none of them actually know so much as believe their speculation is better than evidence or knowledge. It is what it is.

I tend to agree with you though. Businesses are not charities. Games are not free to make, support, or maintain. People who work their have their own children, home mortgages, rent, food, bills, etc. to pay. Belief this is a non-profit is delusional at best and terrifyingly ignorant of reality at worst.

[Kallisto]

NetEase falling out with Blizzard would be enormous. Yikes.

Might not be a falling out. There could be many factors. One could be Chinese companies waiting on the buyout from Microsoft to fully go through before making a commitment. It could be that CCP's clampdown on types of gaming and other media is making it harder to have deals within the PRC. Or yes it could be a falling out overall.

[Relapses]

Might not be a falling out. There could be many factors. One could be Chinese companies waiting on the buyout from Microsoft to fully go through before making a commitment. It could be that CCP's clampdown on types of gaming and other media is making it harder to have deals within the PRC. Or yes it could be a falling out overall.

I get it -- it's hard to read between the lines as to what "mutually satisfactory" means... but the fact that it's showing up in a QR worded as frankly as it is leads me to believe that it likely amounts to "not good."

[Lorgar Aurelian]

NetEase falling out with Blizzard would be enormous. Yikes.

Wouldn’t they just jump to another chineses publishers like they did when they teamed up with netease? I’d assume they would avoid
The same legal pit falls as last time making the down time Far less.

[Mysterymask]

Ahh posting because doomsayers on financial reports here are the best and the hottest of takes always comes from here

[Anevers]

This is why they added the 1-year subscription rewards a few days ago.

Curious are you inferring that the annual sub was to pad these 3rd quarter numbers?

[OrangeJuice]

2 major points I noticed are:

profits down -20%
only 2m WOTLK accounts, 90% at least being bots/alts

I think its safe to say it at this point.

[Osmeric]

only 2m WOTLK accounts, 90% at least being bots/alts

Where does it say that? I couldn't find it.

[FelPlague]

This is why they added the 1-year subscription rewards a few days ago.

You know the 1 year sub thing is part of quarter 4 right?

1- jan-feb-mar
2-apr-may-june
3-july-aug-sept
4-oct-nov-dec

the 1 year sub thing came out in november...


like come on man...

- - - Updated - - -

You guys are like pull-a-lever quote machines.

Not having an annual subscription option would be a fucking terrible business decision, for any company with a subscription product. Subscription's major cons are that your income stream isn't guaranteed month to month, but the pro is that a user might pay and never use their access during the month, meaning they cost you nothing to serve and were pure profit. Not only that, but for most people it's literally something for nothing because they're going to pay 12 monthly subscriptions anyway, and this way they get some money off every month and some shit for free.

I find it legit hilarious how many people on this forum think they know how one of the largest companies on the planet operates just because they use one of their products. Imagine spending your time posting on the internet about how 'desperate' McDonalds are because they're running Monopoly again this year.

Also the fact the 1 year thing came out in november... this is Q3, which is july, august, sepetember... so well yeah... the 1 year sub thing isnt even in q3, its in q4, which is not over yet.

- - - Updated - - -

2 major points I noticed are:

profits down -20%
only 2m WOTLK accounts, 90% at least being bots/alts

I think its safe to say it at this point.

Where did you get this info? especially since q3 which this finacnial post is about, ended 4 days after wotlk classic released so not much data would be from that...

[Mysterymask]

You know the 1 year sub thing is part of quarter 4 right?

1- jan-feb-mar
2-apr-may-june
3-july-aug-sept
4-oct-nov-dec

the 1 year sub thing came out in november...


like come on man...


Also the fact the 1 year thing came out in november... this is Q3, which is july, august, sepetember... so well yeah... the 1 year sub thing isnt even in q3, its in q4, which is not over yet.

Where did you get this info? especially since q3 which this finacnial post is about, ended 4 days after wotlk classic released so not much data would be from that...

Shhhh

You know this is a holy place of anti blizzard propaganda where half the folks who "haven't played wow in years yet continue to post here" can jump in and feel the orgasmic feeling of validation anytime they think they see failure.

IE "look Diablo Immortal isn't mentioned in the west! Obviously it means blizzard is gonna die anytime now that will teach them for daring to add Shaman to the Alliance

[Mentaldemise]

I swear they could add "Sexual assaults in the company increased by 420%" and there'd still be goombuses here trying to defend them and ridicule others for calling a spade a spade.

[Darsithis]

You guys are like pull-a-lever quote machines.

Not having an annual subscription option would be a fucking terrible business decision, for any company with a subscription product. Subscription's major cons are that your income stream isn't guaranteed month to month, but the pro is that a user might pay and never use their access during the month, meaning they cost you nothing to serve and were pure profit. Not only that, but for most people it's literally something for nothing because they're going to pay 12 monthly subscriptions anyway, and this way they get some money off every month and some shit for free.

I find it legit hilarious how many people on this forum think they know how one of the largest companies on the planet operates just because they use one of their products. Imagine spending your time posting on the internet about how 'desperate' McDonalds are because they're running Monopoly again this year.

Once again I lament the inability to like or love posts on MMOC.

This argument is a better articulation of what I’ve said before - Blizzard would be foolish not to have multiple subscription options. It’s not desperation, or “milking a cash cow”, it’s sound business, and, like or not, Blizzard is a business, not your friend.

Where does it say that? I couldn't find it.

‘Cause it’s not true, probably. They’re making it up to stoke the thread.

[Cosmic Janitor]

NetEase falling out with Blizzard would be enormous. Yikes.

I'm not sure this is just on NetEase tbh, with China having essentially started a "war on gaming" (even the local studios/publishers) I could see them run into multiple issues regarding continued publishing in the area. Pretending the Chinese market is a way to limitless growth would probably appear laughable even to investors that don't follow the scene. Though you are correct, that they worded it like that probably means they don't have high expectations of a continued collaboration with NetEase.

What contacts does Microsoft use for publishing in the chinese market? Maybe they can piggy-back on them.