Since we’re suddenly very interested in this company, Activision Blizzard earned a net income of $564 million on revenues of $2.16 billion for the quarter ending December 31. Those revenues represent a drop of 11.6 percent year-over-year (YOY) as the firm’s monthly average users (MAUs) fell from 397 million to 371 million.
“I’m so incredibly proud of our teams for their commitment and passion as we continued to engage the world through epic entertainment in 2021,” Activision Blizzard CEO Bobby Kotick, who inexplicably still has a job, said. “As we look to the future, with Microsoft’s scale and resources, we will be better equipped to grow existing franchises, launch new potential franchises, and unlock the rich library of games we have assembled over 40 years. Our 370 million players around the world and workplace excellence remain our focus. For investors, our recently announced transaction is the culmination of three decades of providing superior shareholder returns.”
The lukewarm reaction to the latest Call of Duty title, Vanguard, played a big role in Activision Blizzard’s decline: the franchise earned revenues of $2.49 billion in the quarter, down from $3.05 billion in the year-ago quarter, when it shipped Call of Duty: Black Ops Cold War. The company admitted that the World War II-themed Vanguard delivered “lower than expected performance.”
Last month, Microsoft announced that it would purchase Activision Blizzard for $68.7 billion, potentially saving the firm from Kotick and his toxic internal culture, and with promises to revive classic game franchises from the past. That deal is currently undergoing regulatory scrutiny, but it is expected to pass without compromise by mid-2023.