Activision Blizzard Q3 2022 Financial Results

Key insights

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Key numbers

Activision Blizzard's total net revenue decreased to $1.78 billion in Q3 2022.

The company reported a 13.9% decline in total net revenue. Net income also saw a significant drop during this period.

$1.78 billion

Total Net Revenue, Q3 2022

Decline in total net revenue: 13.9%
Net income: $435 million

Revenue channels

Digital channels accounted for 90% of Activision Blizzard's total earnings.

In-game purchases, subscriptions, and other digital services generated $1.55 billion. Traditional physical game sales saw a significant year-over-year decline.

Like a streaming service dominating over DVD sales, digital channels are the primary way customers engage and spend.

90%

Share of Total Earnings from Digital Channels, Q3 2022

From in-game purchases, subscriptions, and other digital services: $1.55 billion
Year-over-year decline in traditional physical game sales: 45.3%

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Summary

Activision Blizzard’s financial results for the third quarter of 2022 reveal a period of contraction, characterized by a 31.9% decline in net income to $435 million and a 13.9% decrease in total net revenue to $1.78 billion. This downturn was primarily driven by the Activision segment, which experienced a 25.1% revenue drop attributed to reduced player engagement following the lackluster reception of Call of Duty: Vanguard. Total monthly active users across the company fell by 5.6% to 368 million during this period.

The revenue structure remains heavily reliant on digital channels, which accounted for 90% of total earnings. In-game purchases, subscriptions, and other digital services generated $1.55 billion, representing 87% of total revenue, while traditional game sales saw a significant 45.3% year-over-year decline. Retail and other distribution channels, including esports leagues, contributed a minor portion of the total income.

Performance varied significantly across the company’s three primary operating segments. While Activision struggled, the Blizzard and King divisions demonstrated growth. Blizzard revenue rose 10.1% to $543 million, bolstered by the launch of Diablo Immortal, though the company noted uncertainty regarding the renewal of its Chinese licensing agreements. King remained the top-performing segment, generating $692 million—a 6.1% increase—fueled by strong live operations and user acquisition strategies for titles such as Candy Crush. Despite the overall quarterly decline, the company expressed optimism for future performance, citing the release of Call of Duty: Modern Warfare II as a key driver for anticipated growth in the subsequent quarter.