Activision Outperforms Expectations Despite Fall in WoW Subscriptions

In their financial earnings report for the second quarter ended on June 30, 2012, Activision reports total revenue of $1.08 billion. While the performance is higher than their expectations, it’s still a decrease from $1.15 billion year over year. Digital sales provided a significant boost for the company, bringing in $343 million or 32% of the company’s total revenues.

Activision Blizzard’s chief executive office, Bobby Kotick, expressed that the company will still remain cautious despite the strong quarter:

“While we are increasing our financial outlook for full year 2012, we remain cautious given economic uncertainty, risks to consumer spending especially during the holiday season and the recognition that the majority of our key franchise launches are still ahead of us.”

Call of Duty: Black Ops II and Mists of Pandaria, the World of Warcraft expansion, are the key launches Kotick referenced. The World of Warcraft subscribers dropped to 9.1 million, down from 10.2 in May of this year.

Diablo III and Skylanders: Spyro’s Adventure have been big winners for the company. Diablo III had more than 10 million players through July, and Skylanders became the number one action figure line in the United States.

Due to such strong performances, Activision has raised their revenue forecast for the year up to $4.3 billion, up from the forecast of $4.2 billion given on May 9, 2012.

Activision’s Q1 financials are embedded at the bottom of this article.

Analysis: First Capcom and now Activision. It’s annoying to see when a company adopts such atrocious business practices, ones that everyone despises and is so quick to shoot down, only for those exact same tactics to pull in a massive amount of money for the publishers. You can start to see why they continue to do it, for as much as gamers tend to complain, when it comes to putting our money where our mouth is, we cave immediately.

And things will continue to roll for Activison for the foreseeable future. Call of Duty: Black Ops II will sell like hotcakes and probably shatter records again, and the expansion for World of Warcraft will surely bring back a number of customers who have been lost to new releases such as The Secret World, Guild Wars II, and Star Wars: The Old Republic. Also, the upcoming Skylanders title will surely capture the attention of kids of all ages once again.

Looks to me like Activision is going to continue bringing in money, all the while we complain every step on the way. Somethings never change.

ATVI News 2012-8-2 Activision Blizzard Inc

Nathan Wood

About Nathan Wood

When he picked up a controller on that fateful day at the age of 6, Nathan had no idea how quickly it would captivate him. Enjoying a wide range of games, he is up for anything as long as it is of good quality, interesting or laughably bad. When not playing or writing about video games, he enjoys music, film, basketball and art. He is currently completing his last year of his IB diploma before mastering the great land known only as: University.