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Looks like Blizzard Did All the Work: Activision Blizzard Shares Q1 Business Highlights


Looks like Blizzard Did All the Work: Activision Blizzard Shares Q1 Business Highlights

To accompany today’s Q1 results conference call, Activision Blizzard released some information and highlights about their business during the first quarter.

First order of business involved the big umbrella information: Activision Blizzard’s GAAP net revenues in Q1 2014 were $1.11 billion, a decrease from the $1.32 billion when compared to Q1 2013. Despite this, they found themselves quite pleased with the performance, as they were still more successful than they imagined they would be.

Further along, they shared some more specific information regarding the performance of their individual franchises across various circumstances and the goings-on in the quarter that drove their success:

1. For the first quarter of 2014, in North America and Europe combined, Activision Publishing
had the #1 and #2 best-selling titles– Skylanders SWAP Force and Call of Duty: Ghosts.

2. In North America and Europe combined, Activision Publishing’s Skylanders SWAP 
Force™ was the #1 best-selling kids game overall in dollars for the first quarter of 2014.

3. For the first quarter, Blizzard Entertainment had the #1 PC title in dollars in both North
America and Europe with Diablo III: Reaper of Souls™.

4. On March 10, 2014, Blizzard Entertainment announced that players who pre-purchase
either the digital Standard Edition or Digital Deluxe Edition of World of Warcraft’s
upcoming expansion, Warlords of Draenor, will be able to immediately boost one character
of their choosing to level 90, allowing them to experience the latest content alongside their
friends. Players who wish to boost multiple characters to level 90 also now have the
option to purchase additional level-90 character boosts directly through the game at $60
apiece. Additionally, Blizzard announced that Warlords of Draenor will be released no
later than December 20, 2014.

5. On March 11, 2014, Blizzard Entertainment announced the launch of Hearthstone: Heroes 
of Warcraft, a new cross-platform free-to-play digital card game for Windows and Mac.

6. On March 25, 2014, Blizzard Entertainment announced that players the world over
launched a crusade against Malthael, the angel of Death, with the release of Diablo III: 
Reaper of Souls for Windows and Mac. As of the first week of the expansion’s availability,
more than 2.7 million copies had sold-through online and at retailers worldwide.

7. As of March 31, 2014, Blizzard Entertainment’s World of Warcraft remains the #1
subscription-based MMORPG, with approximately 7.6 million subscribers.

Just from these notes alone, it’s clear that Blizzard was the real bread-winner of the company this past quarter. A little lower down in the tables of the document, specific numbers were detailed that really confirm this idea:

Net Revenues:
Activision: 237 million
Blizzard: 462 million

Operating Incomes:
Activision: 2 million
Blizzard: 239 million

Welp. Let’s not be too rough on Activision, because they do indeed have one crazy-strong lineup coming later this year.

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