Monday, September 26, 2022

Bobby Kotick’s Activision Blizzard Releases Q2 2022 Report

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John Hammond
John Hammond
John Hammond is the lead editor for Business News Ledger. John has been working as a freelance journalist for nearly a decade having published stories in the New York Times, The Plain Dealer, The Daily Mail and many others. Fergus is based in Detroit and covers issues affecting his city and market news.

After the close of the market on Monday, Aug. 1, Activision Blizzard released its Q2 2022 financial report. According to the official filings, during the three-month window that ended June 30, mobile games generated more than half of its revenue. CEO Bobby Kotick has been leading the video game company since Activision merged with Blizzard in 2008 and should be pleased that mobile saw a 5% increase.

According to Activision Blizzard’s Q2 2022 report, the company earned a total of $831 million from the “mobile and ancillary” branch of the video game holding company. It specified that the mobile and ancillary business “primarily include revenues from mobile devices.” As for PC gaming sales, those totaled $332 million, and console sales earned Bobby Kotick’s company $376 million.

Overall, the company earned $1.64 billion in revenue during Q2, which is down year over year from $2.29 billion in Q2 2021. It blamed less player engagement with the Call of Duty franchise for the dip, but could see a boost when Call of Duty: Modern Warfare 2 is released on Oct. 28. After Call of Duty: Modern Warfare became the bestselling installment of the franchise, selling over 30 million copies in the first year since its release in October 2019, the 2021 installment, Call of Duty: Vanguard, experienced sluggish sales.

Free-to-Play Games Are Big Business Across Mobile Devices

Those with their finger on the pulse of the gaming industry might have predicted that the company’s mobile division would see gains, since Blizzard Entertainment’s Diablo Immortal debuted during Q2. The free-to-play game was downloaded more than 8 million times during the first two weeks following the launch. And it raked in an astounding $24 million through many in-app purchases across iOS and Android platforms.

The official report from Bobby Kotick’s Activision Blizzard attributed the dip in PC and console sales to “lower engagement for the Call of Duty franchise.” Additionally, despite the thriving mobile market, the company recently confirmed that Blizzard and NetEase scratched plans for a World of Warcraft mobile title.

“We expect to continue to deliver ongoing content for our various franchises,” states Activision CEO Bobby Kotick. He added that the company “will also continue to invest in opportunities that we believe have the potential to drive our growth over the long term, including continuing to build on our advertising initiatives and investments in mobile titles.”

CEO Bobby Kotick Advocates for Diversity

The Southern California-based company started the Level Up U training program. It’s a 12-week intensive curriculum to better develop professionals for engineering positions at the gaming company.

Level Up U program was created using money from the $250 million that the company’s investing into developing avenues into gaming and technology for people whom the gaming industry has traditionally underrepresented. Tad Leckman is the dean of the program, which consists of classroom and project-based assignments and provides access to experienced industry professionals to act as mentors.

According to a statement from Julie Hodges, the chief people officer at Activision Blizzard, “Level Up U is a unique, three-month program developed to help individuals from all backgrounds start their careers in gaming. It is designed to teach participants the basics of game development and ultimately prepare them for engineering roles within the company.”

Bobby Kotick said, “Talent and diversity have always been critical to Activision Blizzard’s success. However, the rapid growth of the industry, including our franchises, has made it clear that we need to find new ways to attract and grow talent. This is the first of many Level Up U programs, and our plan is to do other skill areas such as art and animation. I’m incredibly excited about the potential of Level Up U.”

He’s always encouraged innovation at the company. Kotick said, “The most important thing we do to encourage innovation is to give people the freedom to fail. And I think you can articulate that and establish that as a value in a lot of different ways. I don’t want to say celebrate the failures, but in a lot of respects, it’s sort of that.”

Kotick added, “We have what we call the postmortem process, really evaluating what is it that caused an outcome not to be aligned to the original expectation. And sometimes, it’s not even like an abject failure if the game just doesn’t sell. Sometimes it’s a game that doesn’t sell as well as you would have expected, or in some cases, more importantly, if it doesn’t feel like it meets the expectations of the audience.”

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