Activision
CompanyUnited States
Documents about Activision
Biggest Buys in Gaming for N00bs: Cooling Considerations on Current Consolidation
This analysis examines the current wave of consolidation in the video games industry, specifically addressing concerns that high-profile acquisitions—such as Microsoft’s proposed purchase of Activision Blizzard—threaten market competition.
- The number of gaming companies generating over $1 billion in annual revenue tripled from 17 in 2012 to 52 in 2021, indicating a broader distribution of market power.
- Even if all pending and rumored acquisitions—including Microsoft/Activision Blizzard, Amazon/EA, and Tencent/Ubisoft—were finalized, the top ten firms' market share would only increase from 56% to 59%.
- Current market concentration remains significantly lower than it was 25 years ago, when the industry approached 100% concentration.
Pistols at Dawn
The public dispute between Microsoft and Sony regarding the proposed acquisition of Activision Blizzard highlights significant regulatory and competitive concerns surrounding the future of the Call of Duty franchise.
- The acquisition of Activision Blizzard by Microsoft faces significant regulatory scrutiny, with the UK’s Competition and Markets Authority (CMA) initiating a 'Phase 2' investigation due to potential anti-competitive concerns.
- Sony’s Jim Ryan publicly rejected Microsoft's offer to keep Call of Duty on PlayStation for three years beyond the existing contract, labeling the proposal inadequate.
- Microsoft claims it offered a signed agreement to guarantee content and feature parity for Call of Duty on PlayStation for 'several more years,' though the specific duration remains a point of contention.
Sony Was Activision Blizzard’s Largest Customer by Revenue in 2020
The primary objective of this analysis is to quantify the revenue dependency of Activision Blizzard on major platform holders during the 2020 and 2021 fiscal years.
- In 2020, Sony was Activision Blizzard’s largest customer, generating 17% of the publisher's total net revenue, or approximately $1.37 billion.
- By 2021, Apple and Google each grew to represent 17% of Activision Blizzard’s total net revenue, while Sony’s share declined to 15%.
- Microsoft’s revenue contribution to Activision Blizzard fell from 11% ($890 million) in 2020 to below 10% in 2021.
Inside the Microsoft vs. Sony 'Unfair Competition' Feud
Public filings from Brazil’s Administrative Council for Economic Defense (CADE) provide a rare, unredacted look into the strategic friction between Microsoft and Sony regarding the proposed $68.7 billion acquisition of Activision Blizzard.
- Microsoft’s $68.7 billion acquisition of Activision Blizzard has triggered a public regulatory dispute in Brazil, revealing a fundamental clash between Sony’s hardware-centric model and Microsoft’s service-based ecosystem.
- Microsoft admitted to losing the previous console generation, noting that the PlayStation 4 outsold the Xbox One by a margin of more than two-to-one.
- Microsoft developed Xbox Game Pass as a direct strategic response to its hardware deficit and the dominance of the PlayStation brand.
Regulating Virtual Reality
The Federal Trade Commission’s decision to block Meta’s $400 million acquisition of Within, the developer of the VR fitness app Supernatural, signals a significant shift in antitrust enforcement.
- The FTC’s attempt to block Meta’s $400 million acquisition of Within signals a shift toward preemptive antitrust intervention in nascent markets to prevent early-stage consolidation.
- Regulators are applying increased scrutiny to gaming and tech acquisitions, potentially creating legal precedents that could hinder future consolidation in cloud gaming and other frontier sectors.
- The gaming industry is experiencing a post-pandemic cooling period, evidenced by declining software sales and persistent hardware supply constraints across major players like Sony, Nintendo, and Electronic Arts.
Sales Comps for Your Game: How Not to Do It
This analysis examines the methodologies and pitfalls of using sales comparables to estimate the return on investment for PC and console games.
- Predictive accuracy is best achieved by combining recent subgenre-specific performance data with Steam wishlist projections rather than relying on outdated evergreen hits.
- Steam wishlist counts serve as a reliable predictive metric, calculated by multiplying the number of Steam followers by ten.
- Developers pitching for funding should present a balanced mix of high-performing and realistic mid-tier comparables to establish credibility.
Activision Blizzard Q2 2022 Financial Results
Activision Blizzard’s financial results for the second quarter of 2022 reveal a significant downturn in performance, primarily driven by decreased engagement within the Call of Duty franchise.
- Activision Blizzard reported Q2 2022 net revenues of $1.64 billion, a 28.3% decline compared to the $2.29 billion recorded in Q2 2021.
- Net income fell 68% to $280 million, while operating profit dropped 64.7% to $338 million during the same period.
- Total monthly active users (MAU) decreased from 408 million in Q2 2021 to 361 million by the end of June 2022.
Is TikTok's Game Over?: Staring Down a Nationwide Ban
The primary focus of this analysis is the potential impact of a United States nationwide ban on TikTok and its parent company, ByteDance, within the interactive entertainment sector.
- A potential U.S. ban on TikTok would likely have a negligible impact on gaming industry revenue models, as the platform is not considered strategically indispensable to major publishers.
- Major gaming brands maintain a surprisingly small footprint on TikTok; for example, Activision Blizzard and Electronic Arts each have fewer than 10,000 followers.
- While high-profile franchises like Fortnite and Xbox have stronger engagement with 9.7 million and 5.6 million followers respectively, these figures remain modest relative to the platform's total scale.
News Mash-Up: Week 25
This summary provides an overview of key developments in the global video game industry for the week of June 20, 2022.
- Fall Guys reached 20 million players within 48 hours of transitioning to a free-to-play model across PC, Xbox, PlayStation, and Switch platforms.
- Sony has officially withdrawn from Gamescom 2022, joining other major publishers like Nintendo, Activision, and Take-Two in skipping the physical event.
- Microsoft is developing 'Direct Capture' technology for Xbox Cloud Gaming, which has already reduced streaming latency by 72ms with the goal of enabling 4K resolution.
Activision Blizzard Shareholders Vote for Annual Misconduct Report
Activision Blizzard has faced significant scrutiny regarding its corporate governance and business practices, highlighted by two distinct developments.
- In June 2022, 67% of Activision Blizzard shareholders voted to approve a non-binding proposal requiring the company to publish annual reports on workplace misconduct, including sexual harassment, discrimination, and settlement costs.
- The Activision Blizzard board formally opposed the 2022 transparency proposal, arguing that the required reporting would divert resources away from direct employee engagement efforts.
- In early 2026, the Italian antitrust regulator (AGCM) launched an investigation into Activision Blizzard’s mobile titles, specifically Diablo Immortal and Call of Duty Mobile, regarding potential consumer protection law violations.
Full Bore: #130
The June 2022 analysis of the Xbox showcase during the "not-E3" period evaluates the company’s marketing strategy and the broader state of the console industry.
- Devolver Digital shares fell nearly 50% after the publisher significantly downgraded its full-year revenue forecast from an original projection of $130m–$140m to a new range of $27m–$32m.
- Microsoft’s 'not-E3' showcase focused exclusively on games launching within the next 12 months and available on Game Pass, signaling a strategy that prioritizes subscription service growth over broader industry visibility.
- Bethesda’s 'Starfield' was presented as a major title for the upcoming year, but its scope—including 1,000 explorable planets—raises industry concerns regarding potential development delays.
Funding the Pain Away: Startup Culture as a Remedy to Corporate Toxicity
This analysis examines the shifting structural and cultural landscape of the video game industry, focusing on the emergence of new independent studios as a reaction to corporate toxicity.
- Venture capital is aggressively funding new independent studios formed by former Activision Blizzard employees, though these startups often struggle to improve demographic diversity compared to the corporate environments they left.
- Microsoft is expanding its Game Pass service into the Samsung Smart TV market, which accounts for 32 percent of global television ownership, to drive platform-agnostic distribution.
- Diablo Immortal highlights the conflict between Western loot box regulations and Asian market monetization, generating $1.8 million in daily gross revenue shortly after its launch.
Its games in the library
Halo: Combat EvolvedBungie · 20015
Call of DutyInfinity Ward · 2003554
Call of Duty: Modern Warfare 3Sledgehammer Games · 20117
Halo 3Bungie · 20073- Call of Duty: Black Ops 625
- Call of Duty: Black Ops 714
- Halo: Campaign Evolved2
Grand Theft Auto VIRockstar North · 2026160
Call of Duty: Modern Warfare 2Infinity Ward · 20099