Activision Blizzard Sees Significant Drop In Revenue And Users In Q1 2022
Activision Blizzard took a massive hit to its revenue this past quarter with Blizzard Entertainment bearing the brunt of the dip as revealed in their Q1 2022 financial report. ABK as a whole saw an 18% drop in revenue quarter-over-quarter, from $2.163 billion in Q4 2021 to $1.77 billion for the first quarter of 2022. Blizzard’s revenues, on the other hand, plunged a whopping 34% at just $274 million compared to last quarter’s $419 million.
Blizzard also lost 2 million players this past quarter from 24 million Monthly Active Users (MAUs) in Q4 2021 to 22 million in Q1 2022 even with the release of World of Warcraft’s Eternity’s End update in March. ABK attributes the drop in year-over-year revenue to “product cycle timing” for the entire Warcraft franchise.
The franchise has several big updates in the pipeline, including the recently-announced Dragonflight expansion, Wrath of the Lich King Classic, and a Warcraft mobile game. The team promises to reveal details on the mobile spinoff in the coming weeks. Diablo Immortal will also be launching this quarter on both mobile devices and on PC.
Blizzard has also started internal testing for Diablo 4 and will be kicking off beta testing of Overwatch 2’s PvP mode later today.
Activision Blizzard reiterates that they will not be holding an investor call and earnings presentation while the Microsoft merger is still in the works. But, the Q1 2022 financial report is available for public scrutiny on the company’s official site for those who want to get into the details.
