Activision Blizzard Q4 2022 Earnings Result
Activision Blizzard announced their Q4 2022 results this afternoon. We now know why there was no article similar to previous expansions about the expansion becoming the fastest selling PC game of all time.
World of Warcraft
- Early Dragonflight sales have not reached the level of the prior expansion, but community feedback on the title has been positive
- World of Warcraft delivered significant year-over-year growth in reach, engagement and net bookings in the fourth quarter following the September release of Wrath of the Lich King Classic and the November launch of Dragonflight
- Post-launch subscriber retention in the West is higher than recent expansions
- Warcraft: Arclight Rumble continues to progress well through regional testing
Overwatch 2
- The October launch of Overwatch 2 with a free-to-play model delivered the highest quarterly figures for player numbers and hours played in Overwatch history
- Player investment is also off to a strong start, with fourth quarter in-game net bookings at the highest level to date for Overwatch
Diablo
- Diablo Immortal on mobile and PC also contributed to Blizzard’s fourth quarter year-over-year growth. Engagement and player investment trends for the title were stable at the end of the fourth quarter and into the new year
- Diablo IV, the next installment in the genre-defining series, is planned for release on PC and console on June 6, 2023
Microsoft
- Microsoft and Activision Blizzard are continuing to engage with regulators and are working toward closing the transaction in Microsoft’s fiscal year ending June 30 2023
Blizzard
- Blizzard reported its highest quarterly net bookings to date, driven by strong growth for Warcraft and the reinvigoration of Overwatch and Diablo
- The first quarter will see significant development and marketing investment in live operations and future releases, including the June launch of Diablo IV
- Blizzard segment revenue and operating income grew approximately 90% year-over-year in the fourth quarter, as our teams executed against a substantial pipeline to deliver well-received content across key intellectual properties.
- Warcraft, Overwatch and Diablo grew strongly year-over-year and each delivered over $100M in net bookings
- Game development teams grew over 25% year-over-year in 2022
- Activision Blizzard increased representation for those who identify as women or non-binary to 26% globally, as of the end of November, versus 24% a year earlier
- Representation for underrepresented ethnic groups increased to 38% from 36% in the US over the same period
- Blizzard remains focused on finding alternative ways to serve the community in China