Activision
CompanyUnited States
Documents about Activision
#218: Get the Papers
This industry update provides a comprehensive overview of major developments in the gaming sector as of July 2023.
- Microsoft and Activision have extended their merger deadline to October 18, 2023, following the FTC's decision to drop its administrative challenge to the deal.
- Activision Blizzard reported a 34% revenue increase for the first half of 2023, driven by the success of Diablo IV, which helped Blizzard achieve its first billion-dollar quarter.
- Sony has signed a ten-year binding agreement to keep the Call of Duty franchise on PlayStation platforms.
Activision Blizzard Q2 2023 Financial Results
Activision Blizzard’s financial results for the second quarter of 2023 demonstrate significant growth across all primary metrics, largely propelled by the successful launch of Diablo IV.
- Activision Blizzard reported $2.2 billion in Q2 2023 net revenue, a 34% year-over-year increase, driven by a 50% rise in net bookings to $2.46 billion.
- The Blizzard segment achieved its first $1 billion quarterly revenue milestone, marking a 168% year-over-year increase fueled by the launch of Diablo IV, which reached over 10 million players in June.
- Operating income grew by 72.4% to $583 million, with digital sales accounting for 91% of total revenue.
Microsoft, Activision Blizzard Extend Deal Deadline to October
Microsoft and Activision Blizzard have formally extended the deadline for their proposed $69 billion acquisition from July 18 to October 18, 2023.
- Microsoft and Activision Blizzard have extended the deadline for their $69 billion acquisition from July 18, 2023, to October 18, 2023, to resolve remaining regulatory concerns.
- If the deal is not completed by August 29, Microsoft will owe a $3.5 billion termination fee, which increases to $4.5 billion if the deal remains incomplete by September 18.
- The extension allows both companies to address regulatory requirements in the UK, where Microsoft and the Competition and Markets Authority (CMA) have entered a two-month legal pause to negotiate a potential compromise.
Blizzard Entertainment Record Sales Boost Activision Blizzard Q2 Profits to $587M
Activision Blizzard reported strong financial performance for the second quarter of 2023, driven primarily by record-breaking sales within its Blizzard Entertainment segment.
- Activision Blizzard reported a net income of $587 million for Q2 2023, a 109.6% increase compared to $280 million in the same period of 2022.
- Total net revenue reached $2.21 billion, representing a 34.8% growth year-over-year from $1.64 billion.
- Blizzard Entertainment segment revenue surged 160% year-over-year to $1.05 billion, driven primarily by the launch of Diablo IV, which attracted over 10 million players in June.
Activision Blizzard Second Quarter 2023 Financial Results
Activision Blizzard achieved substantial financial growth during the second quarter of 2023, characterized by a 50 percent year-over-year increase in net bookings and a 34 percent rise in consolidated net revenues to $2.2 billion.
- Activision Blizzard's GAAP net revenues for Q2 2023 were $2.21 billion, a significant increase from $1.64 billion in Q2 2022.
- Call of Duty: Mobile has generated over $3 billion in lifetime worldwide consumer spending since its launch in October 2019.
- Activision's segment revenue grew 17% year-over-year in Q2 2023, with operating income increasing over 80%, primarily driven by the Call of Duty franchise.
Our Industry News (10/07/23 - 16/07/23)
The publication serves as a weekly roundup of notable developments within the gaming and entertainment sectors, covering the period from 10 to 16 July 2023.
- A federal judge cleared Microsoft’s acquisition of Activision Blizzard to proceed before the July 18 deadline, despite an ongoing appeal by the FTC.
- Microsoft considered extreme regulatory workarounds, including the potential withdrawal of Blizzard from the UK market, to secure the acquisition.
- Antstream expanded to Xbox Series X/S and Xbox One with a library of over 1,300 titles, highlighting a broader industry concern that 87% of classic games in the U.S. are currently out of print.
The Other Shoe Drops: Sony Agrees to 10-Year Call of Duty Deal for PlayStation Platforms
In July 2023, Microsoft and Sony reached a binding 10-year agreement to maintain the availability of the Call of Duty franchise on PlayStation platforms.
- Microsoft and Sony have signed a binding 10-year agreement to keep the Call of Duty franchise available on PlayStation consoles following Microsoft's acquisition of Activision Blizzard.
- This agreement removes the final major industry holdout, as Sony joins other platforms like Nintendo, Nvidia, and Valve in securing long-term access to the Call of Duty franchise.
- The deal represents a critical milestone for Microsoft's $69 billion USD acquisition of Activision Blizzard, significantly reducing the likelihood of successful opposition from global regulatory agencies.
FTC Licks Its Wounds: Google Embraces Blockchain Gaming
This analysis examines the shifting landscape of the gaming industry in mid-2023, specifically focusing on the implications of the Federal Trade Commission’s failed attempt to block Microsoft’s acquisition of Activision Blizzard and the subsequent pivot of major platforms toward blockchain integration.
- District Judge Corley denied the FTC’s request for a preliminary injunction against Microsoft, allowing the company to proceed with its acquisition plans.
- Google Play has updated its policy to permit apps with blockchain capabilities, signaling a strategic move to capture market share in crypto gaming.
- Companies like Mythical Games are actively working to simplify blockchain integration to facilitate the trade of in-game assets via cryptocurrency.
Down. Not Out.: Regulators Pull Out All the Stops to Block the Activision Acquisition
This analysis examines the regulatory landscape surrounding Microsoft’s proposed acquisition of Activision Blizzard following a pivotal U.S. District Court ruling.
- The U.S. District Court’s denial of the FTC’s request for a temporary injunction has significantly increased the probability of Microsoft successfully acquiring Activision Blizzard.
- Regulators failed to provide sufficient evidence that the merger would substantially reduce competition or that Microsoft possesses a financial incentive to make Call of Duty an exclusive title.
- Market confidence in further industry consolidation grew following the ruling, evidenced by rising stock prices for major publishers including Electronic Arts and Take-Two Interactive.
Microsoft Wins Quick Antitrust Battle
In July 2023, a federal judge in San Francisco ruled in favor of Microsoft, denying the U.S.
- In July 2023, a federal judge denied the FTC’s request for a preliminary injunction to block Microsoft’s $69 billion acquisition of Activision Blizzard.
- The court found no evidence that Microsoft intended to make the Call of Duty franchise exclusive to Xbox, citing the company's ten-year commitment to keep the title on PlayStation.
- The ruling was supported by an evidentiary record of nearly three million documents that contained no internal communications contradicting Microsoft’s public commitment to multi-platform availability.
Denied: FTC Loses Bid for Preliminary Injunction Against Microsoft’s Acquisition of Activision Blizzard
A federal judge has denied the Federal Trade Commission’s request for a preliminary injunction to block Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- A federal judge denied the Federal Trade Commission’s request for a preliminary injunction to block Microsoft’s $69 billion acquisition of Activision Blizzard.
- The court ruled that the FTC failed to demonstrate that the merger would likely lead to a substantial lessening of competition, noting that evidence suggested the deal would increase consumer access to content.
- While the ruling removes a major U.S. legal barrier, Microsoft must still resolve regulatory concerns in the United Kingdom, Canada, New Zealand, and Australia.
Inside the Xbox Wars
The legal proceedings between the Federal Trade Commission and Microsoft represent a pivotal moment in the gaming industry, centering on the proposed $69 billion acquisition of Activision Blizzard.
- The $69 billion acquisition of Activision Blizzard by Microsoft became the subject of antitrust litigation initiated by the Federal Trade Commission to assess potential anticompetitive impacts.
- A central concern of the proceedings is whether Microsoft would restrict access to major franchises like Call of Duty to favor the Xbox platform over competitors such as Sony’s PlayStation.
- The litigation serves as a critical regulatory test for large-scale technology mergers and could establish a legal precedent for how future industry acquisitions are evaluated.
Its games in the library
Halo: Combat EvolvedBungie · 200115
Call of DutyInfinity Ward · 2003562- Overwatch156
Call of Duty: Modern Warfare 3Sledgehammer Games · 20117
Halo 3Bungie · 20074- Call of Duty: Black Ops 625
- Call of Duty: Black Ops 714
- Halo: Campaign Evolved3
Grand Theft Auto VIRockstar North · 2026192
Call of Duty: Modern Warfare 2Infinity Ward · 20099