Activision
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Documents about Activision
Lights Out
The gaming industry faces a pervasive crisis of workplace culture and corporate ethics, as evidenced by recent controversies surrounding independent and major studios alike.
- The game industry is facing a widespread cultural crisis as allegations of toxic work environments and misconduct emerge at prominent studios like Fullbright and Activision Blizzard, leading to the departure of key leadership figures.
- Xsolla fired 150 employees based on AI-driven analysis of their activity in workplace software like Jira and Gmail, citing low productivity as the primary justification.
- Epic Games has invested $500 million into the Epic Games Store to secure market share and does not anticipate the platform becoming profitable until 2027.
Three Decades of Games Industry Consolidation
The global video games industry is currently undergoing a significant wave of consolidation, highlighted by three major acquisitions in early 2022: Microsoft’s $69 billion purchase of Activision Blizzard, Take-Two’s $13 billion acquisition of Zynga, and Sony’s $3.6 billion deal for Bungie.
- The console market has reached a 'moderately concentrated' status with a 2021 Herfindahl-Hirschman Index (HHI) of 2,207, while PC and mobile segments remain unconcentrated with HHI levels below 1,500.
- Major 2022 acquisitions—including Microsoft’s $69 billion purchase of Activision Blizzard, Take-Two’s $13 billion deal for Zynga, and Sony’s $3.6 billion acquisition of Bungie—signal a strategic industry shift toward securing IP and talent for cloud and cross-platform services.
- The global games market has quadrupled in size over the last decade, preventing any single firm from achieving a monopoly across all platforms despite increasing consolidation.
Escape Fantasies
This analysis explores the evolving landscape of digital escapism, arguing that modern technological shifts represent a transition from physical luxury fantasies to immersive virtual environments.
- Digital escapism is shifting from physical luxury to immersive virtual environments, evidenced by 77% of gamers participating in non-gaming metaverse activities over a twelve-month period.
- Microsoft’s Game Pass generated an estimated $2.9 billion in 2021, though the service failed to meet internal subscriber growth targets.
- Electronic Arts reported $1.75 billion in net bookings, while Sony’s Network Services revenue reached $794 million despite a decline in PlayStation Plus subscribers.
Moving Forward, Looking Back
This analysis examines the state of Electronic Arts (EA) during the July 2021 industry event cycle, specifically focusing on the company’s shift from predictable, profit-driven marketing to more engaging product reveals.
- EA Play 2021 marked a shift in strategy for Electronic Arts, moving away from its traditional reliance on celebrity-driven marketing toward highlighting gameplay innovations like the new 'Portal' mode in Battlefield 2042.
- Battlefield 2042's 'Portal' mode leverages nostalgia by allowing players to mix and match maps, factions, and rules from across the franchise's history, creating a sustainable content loop that reduces the burden on post-launch development.
- Activision Blizzard is facing significant industry scrutiny following a lawsuit regarding systemic sexual harassment, discrimination, and pay inequality.
Crash Bandicoot: On the Run Surpasses $1.2 Million in Revenue and 34 Million Downloads
Crash Bandicoot: On the Run, developed by King and published by Activision Blizzard, achieved significant market penetration shortly after its release in early 2021.
- King’s 'Crash Bandicoot: On the Run' reached over 34 million downloads shortly after its Q1 2021 launch, becoming the fastest runner game to surpass 20 million downloads.
- The title generated $1.27 million in revenue within its first month of release, though daily revenue has since declined from over $70,000 at launch to approximately $33,000.
- The game achieved 21 million downloads in just four days, significantly outpacing the adoption rates of established competitors like 'Subway Surfers' and 'Temple Run 2'.
Activision Blizzard to Lay Off Another 100 Employees
Activision Blizzard is undergoing a strategic workforce restructuring, resulting in the redundancy of over 100 employees across its Asia-Pacific (APAC) operations.
- Activision Blizzard is laying off over 100 employees across its marketing, PR, publishing, customer care, and localization teams in the APAC region.
- The layoffs are part of a broader strategic shift to transition the company's non-development workforce to a full outsourcing model.
- Internal sources suggest the company is prioritizing high-profile influencer marketing over traditional community management and internal staff roles.
How to Win Beyond Console: The 6 Paths to Mobile
Traditional PC and console publishers face significant structural challenges when transitioning to the mobile gaming market, necessitating a strategic shift from legacy development models toward mobile-first expertise.
- Successful mobile expansion for console publishers requires a shift from viewing mobile as a simple porting channel to adopting a 'mobile-first' culture, as evidenced by Activision Blizzard's struggle with early ports versus the success of Call of Duty: Mobile.
- Warner Bros. Interactive Entertainment achieved significant mobile revenue growth starting in 2017 by prioritizing internal leadership hires with mobile expertise and acquiring specialized studios like The Tap Lab.
- Gameplay-IP fit is a critical success factor; for example, the 4X strategy genre aligns naturally with the themes of reconnaissance, dynasties, and alliances found in the Game of Thrones IP.
Two Chinese Proverbs Best Optimize China's Strategy in the Video Games Market
China’s strategy for the global video game industry is defined by a long-term, patient approach to market dominance, characterized by aggressive investment and state-backed expansion.
- Tencent has established a massive global footprint by acquiring stakes in over 300 companies, including 40% of Epic Games, 11% of PUBG developer Bluehole, and 5% each of Ubisoft, Activision Blizzard, and Paradox Interactive.
- China’s video game market is the world's largest, with the online segment alone projected to exceed $40 billion by 2021 and serving approximately 500 million gamers.
- Tencent’s investment strategy focuses on long-term growth and risk mitigation, exemplified by a 2,000% increase in the value of its 2012 investment in Epic Games over eight years.
Greatly Exaggerated Death of the Console
This analysis challenges the long-standing industry narrative regarding the obsolescence of video game consoles, arguing instead that the medium is entering a period of significant resurgence.
- Microsoft’s $7.5 billion acquisition of ZeniMax Media serves as a strategic move to bolster the Game Pass subscription service and secure high-value intellectual property against tech-giant competitors.
- The console market is shifting from hardware-centric sales to sophisticated, platform-agnostic ecosystems that integrate console, PC, and cloud gaming.
- The scarcity of remaining independent AAA publishers, including Ubisoft, EA, and Activision Blizzard, has driven acquisition valuations to levels that create prohibitive barriers to entry for new market participants.
COVID's Impact on Mobile Game Market Share and Revenues: Japan
This analysis examines the impact of the COVID-19 pandemic on the Japanese mobile gaming market by comparing in-app purchase (IAP) revenues from the top 500 iOS games between the second quarter of 2019 and the second quarter of 2020.
- The Japanese mobile gaming market saw a decline in the Mid-Core category during Q2 2020, driven by revenue dips in major RPG titles like Puzzles & Dragons and Granblue Fantasy.
- RPG remains the dominant genre in Japan, with Puzzle RPGs and Turn-based RPGs (TBRPGs) collectively accounting for 40% of the market.
- Konami emerged as the top publisher in Japan during Q2 2020, achieving a 1.65% increase in market share and $16.5 million in revenue growth.
How Did Covid-19 Affect Mobile Game Market Share & Revenues in the US?
This analysis examines the impact of the COVID-19 pandemic on the United States mobile gaming market by comparing in-app purchase (IAP) revenue and market share data between the second quarter of 2019 and the second quarter of 2020.
- Roblox Corporation, Activision, and Moon Active were the top-performing publishers in Q2 2020, with Roblox Corporation seeing the largest gains in both market share and revenue.
- Simulation games experienced significant growth during Q2 2020, increasing their market share by 3.75% and generating nearly $80 million in additional earnings.
- Casual and Casino categories increased their revenue market share at the expense of Mid-core and Sports categories, though total revenues grew across nearly all categories.
Microsoft Reportedly Interested in Acquiring Warner Bros. Interactive
This report examines two distinct developments within Microsoft’s gaming division, focusing on corporate acquisition interests and internal technological innovation.
- In July 2020, Microsoft was reported to be among the potential bidders for AT&T's Warner Bros. Interactive Entertainment (WBIE) gaming division, which was valued at approximately $4 billion.
- Potential acquisition of WBIE would not automatically include major intellectual property rights such as Harry Potter or DC Comics, as those licenses are held by third parties and would require separate commercial agreements.
- Other companies reportedly interested in acquiring the WBIE division in 2020 included Take-Two Interactive, Electronic Arts, and Activision Blizzard.
