Activision
CompanyUnited States
Documents about Activision
Activision Blizzard Q4 Financial Results
Activision Blizzard’s financial results for the fourth quarter of 2022 demonstrate a period of significant growth in bookings and revenue, driven by the strong performance of its core franchises.
- Activision Blizzard achieved record-breaking net bookings of $3.57 billion in Q4 2022, a 43% year-over-year increase, despite a 28.5% decline in net income to $403 million.
- Mobile platforms are the company's primary revenue driver, accounting for 41% of consolidated net revenues, followed by PC at 25% and console at 24%.
- The Activision segment generated $1.85 billion in revenue, largely driven by the record-setting launch of Call of Duty: Modern Warfare II.
Africa’s Mobile Gaming Market and Carry1st
Africa’s mobile gaming sector represents a nascent yet high-growth frontier, fueled by a rapidly expanding youth population and increasing smartphone and 4G penetration across the continent.
- Carry1st has raised approximately $57 million in total funding since 2018, with a $27 million pre-Series B round in January 2023 led by BITKRAFT Ventures to scale its publishing and payment infrastructure.
- Africa's mobile gaming market is nascent but growing, with an estimated gross in-app purchase revenue of $285 million in 2022 and a total market value likely between $250 million and $750 million.
- The number of internet users in Africa reached approximately 540 million in 2022 and is projected to grow at a CAGR of 5.94% through 2028.
Overwatch League 2023 Season Won’t be Broadcast in China
The 2023 Overwatch League season will not be broadcast in China, marking a significant shift in the league’s regional accessibility.
- The Overwatch League (OWL) will not be broadcast in China for the 2023 season due to the termination of the partnership between Activision Blizzard and NetEase.
- The broadcast ban stems from the loss of official game approval for Overwatch in China, which prevents the streaming or co-streaming of related competitions.
- Chinese OWL teams—the Guangzhou Charge, Chengdu Hunters, Hangzhou Spark, and Shanghai Dragons—are currently considering relocating their operations to South Korea.
Activision Blizzard Pays $38M to Settle SEC Charges
Activision Blizzard has reached a $38 million settlement with the U.S. Securities and Exchange Commission (SEC) to resolve charges regarding internal control failures and violations of whistleblower protection rules.
- Activision Blizzard agreed to a $38 million settlement with the U.S. Securities and Exchange Commission (SEC) to resolve charges regarding workplace misconduct disclosures and whistleblower protections.
- The SEC found that between 2018 and 2021, the company lacked the necessary internal controls to properly collect and analyze employee complaints, preventing it from assessing the scale of workplace issues for public disclosure.
- Activision Blizzard violated SEC whistleblower rules by requiring departing employees to disclose whether they had communicated with the Commission regarding potential securities law violations.
European Union Will Deliver a Statement of Objections to Microsoft
The European Commission is preparing to issue a formal statement of objections to Microsoft regarding its proposed $69 billion acquisition of Activision Blizzard.
- The European Commission is preparing a formal 'statement of objections' regarding Microsoft's proposed $69 billion acquisition of Activision Blizzard.
- EU regulators will not consider any remedies from Microsoft until the formal statement of objections has been officially delivered.
- Microsoft aims to finalize the acquisition by July 18, 2023, to avoid either renegotiating the deal or paying a $3 billion separation fee to Activision Blizzard.
Chinese Overwatch League Teams Ponder Options as They Wait for Activision Blizzard
The dissolution of the partnership between NetEase and Activision Blizzard in early 2023 created significant instability for the four Chinese teams competing in the Overwatch League: the Guangzhou Charge, Hangzhou Spark, Chengdu Hunters, and Shanghai Dragons.
- The dissolution of the partnership between NetEase and Activision Blizzard has created significant uncertainty for China’s four Overwatch League (OWL) teams: the Shanghai Dragons, Guangzhou Charge, Hangzhou Spark, and Chengdu Hunters.
- Chinese OWL teams are operating on reduced budgets and delaying further investment until Activision Blizzard identifies an alternative Chinese distributor for its titles.
- Industry experts and internal sources anticipate potential widespread layoffs in the Chinese esports sector, affecting professional players, streamers, and talent due to the uncertain future of Blizzard games in the region.
Activision Blizzard Games Going Offline: China
As of January 24, 2023, Activision Blizzard ceased operations for several major titles in China, including World of Warcraft, Hearthstone, StarCraft, and Overwatch 2.
- As of January 24, 2023, Activision Blizzard games including World of Warcraft, Hearthstone, Overwatch 2, and StarCraft have gone offline in China due to the expiration of the company's 14-year partnership with NetEase.
- Because NetEase held the official government-mandated game approvals, the termination of the partnership effectively stripped the titles of their legal authorization to operate in the Chinese market.
- Any potential return of these titles to the Chinese market requires new government approval, a process that industry estimates suggest could take between six months and two years.
Why the Fight Between NetEase and Activision Blizzard Matters to Esports
The breakdown of the partnership between Activision Blizzard and its Chinese distributor, NetEase, represents a significant disruption to the esports landscape in China.
- The partnership between Activision Blizzard and NetEase has collapsed, resulting in the termination of distribution services for major titles like World of Warcraft, Diablo, and Overwatch in China.
- The loss of the distribution deal renders Activision Blizzard games effectively illegal to operate in China due to the country's strict game approval requirements, potentially barring access for months or years.
- The Overwatch League (OWL) faces significant operational disruption, as teams including the Chengdu Hunters, Guangzhou Charge, Hangzhou Spark, and Shanghai Dragons lose their home-region viability.
Blizzard Presents Scaled-Down Hearthstone Esports Plans for 2023
Blizzard Entertainment’s 2023 esports strategy for Hearthstone marks a significant contraction in the game’s competitive ecosystem.
- Blizzard Entertainment has significantly reduced its 2023 Hearthstone esports program, cutting the total prize pool to $650,000 from $3 million in 2022 and $2.22 million in 2021.
- The 2023 season will feature only seven total events, down from 12 events in 2022.
- Chinese player participation and viewership have been removed from the 2023 season due to the termination of the distribution agreement between Activision Blizzard and NetEase.
Global Games Industry Deal Activity 2022
The global games industry experienced a record-breaking year in 2022, characterized by a significant surge in both the volume and total value of financial transactions.
- The global games industry reached a record $127 billion in total deal value across 1,320 transactions in 2022, marking a 78.8% increase over the previous year.
- Mergers and acquisitions were the primary growth driver, totaling $102.3 billion—a threefold increase compared to 2021.
- The PC and console segment dominated M&A activity, accounting for 83 transactions valued at $74.9 billion, headlined by Microsoft’s $68.9 billion bid for Activision Blizzard.
Predictions for 2023: Life Comes at You Fast
The 2023 outlook for the global video games and technology sectors emphasizes a period of rapid transformation driven by the intersection of gaming, music, and emerging technologies.
- The $200 billion global video game market is increasingly functioning as a social platform for other entertainment sectors, evidenced by events like Blackpink’s 16-million-viewer virtual concert in PUBG.
- The North American gaming labor force, totaling 429,000 professionals, is shifting toward unionization, marked by the successful organization of 300 Microsoft/ZeniMax employees.
- The esports sector is experiencing a significant contraction, highlighted by a 37 percent year-over-year decline in major prize pools and falling stock prices for public firms.
Behind the Mask
The January 2023 analysis critiques Microsoft’s decision to lay off 10,000 employees while simultaneously pursuing a $68.7 billion acquisition of Activision Blizzard.
- Microsoft announced the layoff of 10,000 employees, representing nearly 5% of its global workforce, while simultaneously pursuing a $68.7 billion acquisition of Activision Blizzard.
- Despite recent economic concerns, Microsoft reported $17.6 billion in profit on $50.1 billion in revenue for the quarter ending September 30, 2022, and held nearly $23 billion in cash.
- The $68.7 billion earmarked for the Activision Blizzard acquisition could theoretically fund the salaries of the 10,000 laid-off employees for over 41 years, based on a median salary of $162,818.
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