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Activision Blizzard Sales Fall on Weak Call of Duty Release

  • Game industry seeing slower year overall as spending declines
  • Activision increased developer headcount by 25% year over year
Updated on

Activision Blizzard Inc., the biggest US video game publisher, reported revenue that beat analysts’ estimates, but adjusted sales declined 15% from a year ago due to a soft Call of Duty launch last fall and a slow year for the gaming industry overall.

Activision, which is in the process of being acquired by Microsoft Corp., brought in adjusted revenue in the second quarter of $1.64 billion, compared with the average analyst’s projection for $1.6 billion. Adjusted revenue excludes deferred sales from online purchases. Adjusted earnings per share were 47 cents, almost 50% lower than a year earlier and slightly below analysts’ estimates, according to data compiled by Bloomberg.