Activision Blizzard cites Microsoft deal and lower Call of Duty sales as cause of declined revenues

Activision Blizzard has released a financial report for the first quarter of 2022. The company saw its revenues and net income decline year-over-year, with lower Call of Duty sales and the Microsoft deal being named among the reasons behind it.

Call of Duty: Vanguard

Key takeaways from the report

• The company’s net revenues were $1.77 billion, which is down 22.2% year-over-year. 
• Microtransactions, subscriptions, licensing royalties, and other downloadable content accounted for 78% of this sum.
• Activision Blizzard’s net income was $395 million, which is down 36.1% year-over-year.
• The company cited lower results for Call of Duty, product cycle timing at Blizzard, and an “increase in legal and other professional fees, primarily driven by costs associated with our proposed transaction with Microsoft,” among reasons behind the decline.
• During the first quarter, Call of Duty net bookings declined year-over-year, reflecting lower Vanguard sales and lower engagement in Warzone.
• Blizzard’s revenues also declined year-over-year, reflecting “product cycle timing for the Warcraft franchise.”
• Diablo Immortal, which will come out on June 2, has already collected over 30 million pre-registrations on iOS and Android
• King was the only division to show growth during the first quarter. Its net bookings rose by 8% year-over-year, and its player number also grew by a double-digit percentage.