Editor’s Note: A lawsuit has been filed against Activision Blizzard by the California Department of Fair Employment and Housing, which alleges the company has engaged in abuse, discrimination, and retaliation against its female employees. Activision Blizzard has denied the allegations. The full details of the Activision Blizzard lawsuit (content warning: rape, suicide, abuse, harassment) are being updated as new information becomes available.
According to was recently acquired by Microsoft, is not in the best position.
Call of Duty has been an important part of Activision Blizzard ever since the two companies merged in 2008, and it’s currently one of the best-selling and most recognizable video game franchises across the world. In 2018, the series took an unexpected turn with Call of Duty: Black Ops 4 by making the game exclusively multiplayer. Activision Blizzard took another step with battle royale Call of Duty: Warzone, the first main Call of Duty title to be free-to-play. A sequel to Warzone will be revealed this year, leading the public to believe that the free-to-play Call of Duty model will stick around. Activision Blizzard has enjoyed substantial earnings from Warzone since its 2020 launch, and it’s been continually updated ever since.
However, the quarterly reports show that Activision Blizzard has lost roughly 63 million monthly active s compared to the same time last year (via GameSpot). According to Activision, “lower engagement” for Call of Duty: Warzone and low Call of Duty: Vanguard sales were some of the biggest contributing factors. These player numbers also led to roughly an 18% drop in net revenue compared to the previous quarter and a 22% dip compared to the same time last year, marking the company’s lowest revenue since Q3 2019. Despite Call of Duty being a big part of the significant financial hit to the company, the series is supposedly expanding. A sequel to Call of Duty: Modern Warfare (2019) is already in the works and is reportedly the “most advanced experience” the franchise has seen.
It's unclear if Activision Blizzard’s recent controversies have played a significant part in the decline in active monthly s, but with reports of boycotts against the company’s products, it wouldn’t be surprising. Players have also voiced disappointment in the state of the Call of Duty franchise, particularly the most recent installments. If the quality in future titles remains below player expectations, the Call of Duty games could continue to lose players.
Despite its current legal and financial states, Activision Blizzard is currently being purchased by Microsoft for $68.7 billion. The deal is expected to be completed in 2023, and it’s currently unknown if current CEO Bobby Kotick is going to step away from his role in the company once it is. Considering how large a portion of Activision Blizzard's portfolio is made up of the Call of Duty franchise, Microsoft may be incentivized to turn these player and engagement trends around.
Source: GameSpot
