Activision Blizzard has presented the financial results for Q2 2021. Blizzard continues to struggle with active player numbers, the studio behind WoW, Overwatch, and Diablo has lost another million players. Additionally, Activision Blizzard warns of the potential negative impacts of the sexism crisis. However, the numbers from Call of Duty: Warzone and the mobile title are so strong that Activision Blizzard’s stock is rising despite everything.
These are Activision’s quarterly figures: The video game publisher has exceeded expectations for Q2 2021.
- Revenue was $1.92 billion – only $1.89 billion was expected
- Revenue per share was $0.91 – $0.75 was expected.
Compared to the pandemic year 2020, revenues have even risen further.
What number is concerning? A number that Activision Blizzard likely does not find pleasing appears at the very end of the business report: it is the “Monthly Active Users.” These are all players who have logged in at least once a month.
Here, especially the game studio Blizzard has lost a significant number of players in recent years. Over three years, they have lost a third of active users, and the negative trend continues:
- In Q2 2018, Blizzard still had 37 million users
- In Q2 2019, there were still 32 million users
- In Q2 2020, there were stable 32 million users – here WoW Classic apparently prevented further losses
- But in Q2 2021, there are only 26 million users left – thus, the number of active users fell by another million compared to Q1 2021.
Call of Duty Warzone and Mobile save Activision Blizzard
This was the big bright spot: What is currently casting a positive light on Activision Blizzard, is the success of Call of Duty, with its trio of the full-price title Cold War, the free-to-play title Warzone, and the mobile offshoot.
It is said that the numbers are far higher than before the introduction of Warzone: Compared to 2019, the numbers have tripled. Call of Duty Mobile is also positively mentioned, having risen by more than 10%.
Additionally, the company’s mobile studio, King, is praised: here too, revenue has grown by 15%.
The titles from Blizzard also received praise: Here, Activision Blizzard particularly highlights WoW Classic, where Burning Crusade is said to have boosted subscription numbers.
Where exactly Blizzard has lost that million players, if WoW is doing so well, remains unclear. It could be Overwatch, where not much has happened for months. However, it is said that the development of Overwatch 2 and Diablo 4 is progressing well. The mobile title Diablo Immortal has however been delayed.
Activision Blizzard warns of possible negative consequences from the sexism scandal
This overshadows everything: The sexism scandal, following the lawsuit, is also reflected in the business report. This scandal around Blizzard has dominated international coverage of gaming in the past two weeks.
Activision Blizzard warns investors that they could experience a “longer period of significantly lower productivity”; additionally, negative public reactions and further negative consequences for the company could arise. They will closely examine all of this.
The report also contains further statements that Activision Blizzard is committed to ensuring the well-being of employees and ensuring that all staff feel safe and welcome.
Good business figures cushion the impact of the sexism scandal
This is how it affected the stock price: Activision Blizzard’s stock had recently fallen sharply and hit the lowest level in 2021. On August 3, it still looked like it would be a bad day on the stock market: After the resignation of Blizzard CEO J. Allen Brack, the stock plummeted by another 3.5%.
However, the positive business figures halted this downward trend and gave the stock a boost upward. Before the official trading start on August 4 and after the business figures were announced, Activision Blizzard’s stock had already risen by 5.8%.
The stock is not as high as before the sexism scandal – in recent days, the stock has fallen from about $90 to below $80.
The news of the departure of Blizzard President shook Activision Blizzard’s stock yesterday, but it apparently only lasted a few hours until the business figures smoothed things over:
WoW: President J. Allen Brack leaves Blizzard – After sexism scandal
