Activision Blizzard releases its second quarter results and shows a 28% decline in results. What about Blizzard Entertainment and the launch of Diablo Immortal? Return of players, but weak financial results.
Last night, Activision Blizzard Group presented its reports for the second quarter of 2022 and, like the two previous ones, reports a decline in results: the entire Activision Blizzard group thus recorded a turnover of 1.64 billion dollars (against 1.77 billion a quarter earlier and down 28% from the 2.3 billion recorded in the same period in 2021). The same in terms of net income, which is $280 million versus $876 million in Q2 2021 earnings.
The same trend again in terms of the number of active players in the group, which grew from 372 million active players in one month in the first quarter to 361 million in the second.
If Bobby Kotick chose to quickly brush aside the issue of numbers to focus more on the group’s acquisitions (such as the recent takeover of the studio Proletariat), then the Activision Blizzard boss attributes these numbers, in part, to the declining interest of players in the Call of Duty license (the group’s turnover on PC and consoles almost halved, only the mobile segment grew by 5%. And yet, according to the Activision Blizzard boss, lower results are still expected in the second half of 2022, pending major new releases.
What about the implications of launching Diablo Immortal?
These Q2 2022 results, though, have sparked some curiosity on the Blizzard Entertainment front first: what about the impact the launch of Diablo Immortal will have on the California developer’s accounts? Here, too, the results are mixed.
Blizzard announced quarterly revenue of $401 million. That’s a lot better than the previous quarter’s 274 million, but we remember it was considered catastrophic. After all, the second quarter of 2022 is worse than the same quarter of 2021, when revenue was $433 million thanks to the launch of Burning Crusade Classic, or even than the next two – $493 million in the third quarter of 2021, then 419 million. million in third.
The real economic success of Diablo Immortal can only be assessed at the end of the third quarter of 2022 (estimate the performance of the game for a full quarter, since the game was launched in early June in the West and late July in China), but for the time being, from a purely financial point of view In terms of vision, the launch of the free-to-play Diablo Immortal doesn’t seem as dazzling as one might imagine.
What about the number of active players?
(The only one?) The real satisfaction of launching Diablo Immortal obviously comes from the number of active players on Blizzard’s platforms. As we know, the number of players has been slowly declining year on year (38 million active players at the beginning of 2018, 22 million at the beginning of 2022), and this degradation seems to have stopped thanks to the launch of mobile games.
In the second quarter of 2022, Blizzard had 27 million active players on its platforms, up five million from the previous quarter (22 million) and one million more than a year earlier (26 million in the second quarter of 2021).
This figure should also be considered in conjunction with Blizzard’s announcement of ten million players in Diablo Immortal. When you consider that five million new players were actually brought in by the mobile game, half of Diablo Immortal players were already Blizzard-signed gamers when the other half discovered the developer ecosystem through hack n slash mobile. .
Finally, what about the future? If the current results are mixed, it’s because the developer is preparing these upcoming releases, and we know there are many: the Dragonflight expansion for World of Warcraft and the classic Wrath of the Lich King, as well as Overwatch 2, then Diablo. IV, to which the mobile game Warcraft Arclight Rumble will be added. Stop feeding the Battle.net platform, waiting for a response from the players.