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Activision Blizzard Inc's Business Segments
Activision Blizzard Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of Q2 FY2023
Reportable Segments
4
Largest Segment
Activision
Total Revenue
$ 2,207
Regions Reported
3
Revenue Share by Reportable Segment - Q2 FY2023
- Activision38.2%
- King Digital Entertainment33.8%
- Blizzard23.9%
- Corporate and Unallocated4.4%
Revenue by Reportable Segment - Q2 FY2023
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Activision | $ 844 | 38.2% |
| King Digital Entertainment | $ 747 | 33.8% |
| Blizzard | $ 527 | 23.9% |
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Revenue Share by Region - Q2 FY2023
- Asia Pacific12.2%
- EMEA4.4%
- Americas0%
Revenue by Geographic Region - Q2 FY2023
| Region | Revenue (Millions) | % of Total |
|---|---|---|
| Asia Pacific | $ 269 | 12.2% |
| EMEA | $ 97 | 4.4% |
| Americas | $ 1 | 0% |
Revenue by Product & Service Category - Q2 FY2023
- In-game, Subscription, and Other76.4%
- Digital online channels33.8%
- Mobile and Ancillary Platforms33%
- Product23.6%
- Other4.4%
- Other Distribution Channels4.4%
- Console2.9%
- PC0.8%
- Retail channels0.3%
Revenue by Product & Service Category - Q2 FY2023
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| In-game, Subscription, and Other | $ 1,687 | 76.4% |
| Digital online channels | $ 747 | 33.8% |
| Mobile and Ancillary Platforms | $ 729 | 33% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
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Description of Activision Blizzard Inc
Activision Blizzard, Inc. is a major player in the interactive entertainment industry, recognized globally for its significant contributions to video game development and publishing. The company encompasses two primary divisions: Activision Publishing and Blizzard Entertainment. Each of these divisions specializes in different aspects of gaming, appealing to a diverse audience and cultivating an expansive catalog of popular franchises.
Overview
Founded in 2008 as a result of a merger between Activision, one of the oldest video game companies in existence, and Blizzard Entertainment, known for its critically acclaimed online games, Activision Blizzard operates as one of the world’s largest interactive entertainment companies. The company is headquartered in Santa Monica, California, and leads the industry through innovative game mechanics, immersive experiences, and persistent virtual worlds.
Activision Publishing
Activision Publishing, Inc. is renowned for its prolific output of video games across various platforms. The company focuses on developing and publishing titles for personal computers (PC), consoles such as PlayStation, Xbox, and Nintendo Switch, as well as mobile devices. Activision has created numerous iconic franchises that have influenced gaming culture, including:
- Call of Duty: Perhaps the most recognized franchise under Activision, this series encompasses first-person shooters set in various historical and futuristic scenarios. The franchise has evolved to include several sub-series and has created a massive esports scene, particularly with titles like Call of Duty: Warzone.
- Tony Hawks Pro Skater: This franchise revolutionized sports video games with its arcade-style gameplay and a focus on skateboarding culture, featuring notable skaters and locations.
- Skylanders: An innovative hybrid of video game and toy line, Skylanders was one of the first to integrate physical toys into a video game through the use of action figures that players could place on a portal to unlock characters in-game.
- Crash Bandicoot & Spyro: Once flagship characters in the 1990s, these franchises have seen a resurgence in popularity through remastered collections and new titles.
Activision has also engaged in strategic partnerships and acquisitions to enhance its gaming portfolio, including collaborations with independent developers and leveraging popular culture for licensed game production.
Blizzard Entertainment
Blizzard Entertainment, Inc. stands out for its commitment to creating immersive worlds and engaging narratives, particularly within the massively multiplayer online role-playing game (MMORPG) genre. The division is best known for its flagship titles, including:
- World of Warcraft: Launched in 2004, this MMORPG has become a cultural phenomenon, providing players with a rich, expansive universe to explore, partake in quests, and interact with others in real-time. Regular expansions and content updates have helped sustain its player base for nearly two decades.
- Overwatch: A team-based multiplayer first-person shooter, Overwatch quickly gained popularity due to its diverse cast of characters, dynamic gameplay, and captivating lore, leading to a robust competitive gaming community.
- Diablo: This action role-playing game franchise is known for its dark fantasy themes and dungeon crawling gameplay. Each installment has introduced new mechanics, expanding on the dark lore and addictive gameplay loop.
- StarCraft: Recognized as one of the hallmark games in esports, particularly in South Korea, StarCraft and its sequel have set the standard for competitive real-time strategy games, with a loyal fanbase and a significant competitive scene.
Blizzard also develops and manages Battle.net, a proprietary online gaming service that supports multiplayer gaming and digital distribution across its titles. It has evolved to include features emphasizing community engagement, including friend lists, clans, and matchmaking services.
Current Trends and Future Direction
In recent years, Activision Blizzard has focused on expanding its digital presence and integrating emerging technologies within its games. Initiatives include:
- Esports: Both Activision and Blizzard have heavily invested in the esports industry, hosting league championships for titles like Call of Duty League and Overwatch League. These initiatives not only attract viewer engagement but also cultivate a community of professional gamers.
- Mobile Gaming: The demand for mobile gaming has led Activision Blizzard to adapt existing franchises for mobile platforms, as evidenced by games like Call of Duty: Mobileand the announcement of future mobile titles from both Activision and Blizzard.
- Cross-Platform Play: The company has been a proponent of cross-platform gaming, allowing players from different systems to play together, enhancing accessibility and community interaction.
- Sustainability and Diversity Initiatives: Activision Blizzard has also made commitments to diversity and inclusion in gaming, focusing on building a more equitable work environment and creating games that reflect a broader range of experiences and perspectives.
Conclusion
Activision Blizzard, Inc. remains a titan in the global gaming industry, with a dynamic portfolio of beloved franchises and a vision that embraces innovation and community. With a strategic focus on emerging trends, technological advancements, and engagement in competitive gaming, the company is well-positioned to navigate the ever-evolving landscape of interactive entertainment in the years to come.
Overview
Founded in 2008 as a result of a merger between Activision, one of the oldest video game companies in existence, and Blizzard Entertainment, known for its critically acclaimed online games, Activision Blizzard operates as one of the world’s largest interactive entertainment companies. The company is headquartered in Santa Monica, California, and leads the industry through innovative game mechanics, immersive experiences, and persistent virtual worlds.
Activision Publishing
Activision Publishing, Inc. is renowned for its prolific output of video games across various platforms. The company focuses on developing and publishing titles for personal computers (PC), consoles such as PlayStation, Xbox, and Nintendo Switch, as well as mobile devices. Activision has created numerous iconic franchises that have influenced gaming culture, including:
- Call of Duty: Perhaps the most recognized franchise under Activision, this series encompasses first-person shooters set in various historical and futuristic scenarios. The franchise has evolved to include several sub-series and has created a massive esports scene, particularly with titles like Call of Duty: Warzone.
- Tony Hawks Pro Skater: This franchise revolutionized sports video games with its arcade-style gameplay and a focus on skateboarding culture, featuring notable skaters and locations.
- Skylanders: An innovative hybrid of video game and toy line, Skylanders was one of the first to integrate physical toys into a video game through the use of action figures that players could place on a portal to unlock characters in-game.
- Crash Bandicoot & Spyro: Once flagship characters in the 1990s, these franchises have seen a resurgence in popularity through remastered collections and new titles.
Activision has also engaged in strategic partnerships and acquisitions to enhance its gaming portfolio, including collaborations with independent developers and leveraging popular culture for licensed game production.
Blizzard Entertainment
Blizzard Entertainment, Inc. stands out for its commitment to creating immersive worlds and engaging narratives, particularly within the massively multiplayer online role-playing game (MMORPG) genre. The division is best known for its flagship titles, including:
- World of Warcraft: Launched in 2004, this MMORPG has become a cultural phenomenon, providing players with a rich, expansive universe to explore, partake in quests, and interact with others in real-time. Regular expansions and content updates have helped sustain its player base for nearly two decades.
- Overwatch: A team-based multiplayer first-person shooter, Overwatch quickly gained popularity due to its diverse cast of characters, dynamic gameplay, and captivating lore, leading to a robust competitive gaming community.
- Diablo: This action role-playing game franchise is known for its dark fantasy themes and dungeon crawling gameplay. Each installment has introduced new mechanics, expanding on the dark lore and addictive gameplay loop.
- StarCraft: Recognized as one of the hallmark games in esports, particularly in South Korea, StarCraft and its sequel have set the standard for competitive real-time strategy games, with a loyal fanbase and a significant competitive scene.
Blizzard also develops and manages Battle.net, a proprietary online gaming service that supports multiplayer gaming and digital distribution across its titles. It has evolved to include features emphasizing community engagement, including friend lists, clans, and matchmaking services.
Current Trends and Future Direction
In recent years, Activision Blizzard has focused on expanding its digital presence and integrating emerging technologies within its games. Initiatives include:
- Esports: Both Activision and Blizzard have heavily invested in the esports industry, hosting league championships for titles like Call of Duty League and Overwatch League. These initiatives not only attract viewer engagement but also cultivate a community of professional gamers.
- Mobile Gaming: The demand for mobile gaming has led Activision Blizzard to adapt existing franchises for mobile platforms, as evidenced by games like Call of Duty: Mobileand the announcement of future mobile titles from both Activision and Blizzard.
- Cross-Platform Play: The company has been a proponent of cross-platform gaming, allowing players from different systems to play together, enhancing accessibility and community interaction.
- Sustainability and Diversity Initiatives: Activision Blizzard has also made commitments to diversity and inclusion in gaming, focusing on building a more equitable work environment and creating games that reflect a broader range of experiences and perspectives.
Conclusion
Activision Blizzard, Inc. remains a titan in the global gaming industry, with a dynamic portfolio of beloved franchises and a vision that embraces innovation and community. With a strategic focus on emerging trends, technological advancements, and engagement in competitive gaming, the company is well-positioned to navigate the ever-evolving landscape of interactive entertainment in the years to come.
Activision Blizzard Inc. is a major player in the interactive entertainment industry, recognized for its diverse portfolio of segments, products, and services that cater to a broad audience of gamers across various platforms. The company operates primarily through two key divisions: Activision and Blizzard Entertainment.
Activision Segment
Activision Publishing, Inc. is well known for its extensive lineup of video games that span across numerous genres. The company focuses on the development and publishing of interactive software products, primarily for:
- Consoles: Games are released for major gaming consoles including Sony PlayStation, Microsoft Xbox, and Nintendo Switch. The franchise titles released often become best-sellers, with annual releases contributing to ongoing revenue growth.
- Personal Computers: Activision distributes many of its online titles and franchises through personal computer platforms, allowing for online multiplayer gameplay and tailored content updates.
- Handheld Devices: Activision provides games suitable for handheld gaming systems, which cater to gamers who prefer portable experiences.
- Mobile Platforms: The company has increasingly targeted mobile gaming, developing mobile applications and games compatible with Apple iOS devices and Android platforms; some titles leverage popular IPs to reach wider audiences.
Key Product Franchises Under Activision:
1. Call of Duty Series: Continually innovative, the Call of Dutyfranchise has been vital in establishing Activision as a leading publisher in the first-person shooter genre. The series regularly sees annual installments, including campaigns and popular free-to-play title “Call of Duty: Warzone.”
2. Crash Bandicoot: Originally launched as a platform game for PlayStation, the Crash Bandicoot franchise has been revitalized through remakes and sequels, appealing to both nostalgia and new players.
3. Tony Hawks Pro Skater: This franchise has been successful in the sports game genre, blending skateboarding culture with engaging gameplay mechanics focused on tricks, stunts, and competitions.
4. Overwatch: This team-based multiplayer first-person shooter has achieved both critical acclaim and commercial success, carving out a significant niche in online competitive gaming.
Blizzard Segment
Blizzard Entertainment, Inc. is renowned for its rich history of creating enduring game franchises that often include expansive lore, immersive gameplay, and engaging community content.
- Massively Multiplayer Online Role-Playing Games (MMORPGs): Blizzard is a pioneer in this space, with World of Warcraft being its flagship title. The MMORPG has set the industry standard with its ongoing expansions, subscription model, and an evolving in-game economy.
- Games Services: Blizzard provides a range of services that enhance user experiences, including digital distribution through Blizzards Battle.net platform. This service offers a myriad of features such as matchmaking, friend lists, in-game voice chat, and access to game updates.
Key Product Franchises Under Blizzard:
1. World of Warcraft: Continues to grow with expansions, in-game events, and a robust community. Revenue comes from monthly subscriptions, expansion packs, and in-game purchases.
2. Overwatch: A competitive multiplayer shooter that has spawned a professional esports league and continues to evolve with new heroes, maps, and seasonal events.
3. Diablo Series: Renowned for its dark fantasy themes, the Diablofranchise has maintained popularity through releases like Diablo IIIand the highly anticipated Diablo IV.The franchise blends action role-playing and immersive storylines.
4. StarCraft Series: A hallmark of real-time strategy games, the StarCraftfranchise has a devoted fanbase and is known for its balance and competitive gameplay, influencing esports.
Revenue Generation
Activision Blizzard employs several revenue-generating strategies across its segments:
- Subscription Fees: Particularly from the MMORPG genre, where World of Warcraftplayers pay monthly fees, and additional revenue comes from game expansions and value-added services.
- Retail and Digital Sales: Physical copies of games, downloadable content (DLC), and in-game purchases are significant income streams, with digital distribution becoming a major component of sales strategy.
- Licensing: The company generates revenue through licensing agreements with third-party distributors for various titles, enhancing global reach.
- Esports: Activision Blizzard has made considerable investments in esports, organizing leagues and events that create additional revenue streams through sponsorships, advertising, and media rights.
Future Direction
While specifics about upcoming projects and releases may vary, Activision Blizzard is focused on continuously evolving its existing franchises with regular updates, expansions, and esports tournaments. Additionally, investments in mobile gaming and live-service models reflect a strategic direction that aligns with current market trends, catering to both traditional and casual gamers alike.
Activision Segment
Activision Publishing, Inc. is well known for its extensive lineup of video games that span across numerous genres. The company focuses on the development and publishing of interactive software products, primarily for:
- Consoles: Games are released for major gaming consoles including Sony PlayStation, Microsoft Xbox, and Nintendo Switch. The franchise titles released often become best-sellers, with annual releases contributing to ongoing revenue growth.
- Personal Computers: Activision distributes many of its online titles and franchises through personal computer platforms, allowing for online multiplayer gameplay and tailored content updates.
- Handheld Devices: Activision provides games suitable for handheld gaming systems, which cater to gamers who prefer portable experiences.
- Mobile Platforms: The company has increasingly targeted mobile gaming, developing mobile applications and games compatible with Apple iOS devices and Android platforms; some titles leverage popular IPs to reach wider audiences.
Key Product Franchises Under Activision:
1. Call of Duty Series: Continually innovative, the Call of Dutyfranchise has been vital in establishing Activision as a leading publisher in the first-person shooter genre. The series regularly sees annual installments, including campaigns and popular free-to-play title “Call of Duty: Warzone.”
2. Crash Bandicoot: Originally launched as a platform game for PlayStation, the Crash Bandicoot franchise has been revitalized through remakes and sequels, appealing to both nostalgia and new players.
3. Tony Hawks Pro Skater: This franchise has been successful in the sports game genre, blending skateboarding culture with engaging gameplay mechanics focused on tricks, stunts, and competitions.
4. Overwatch: This team-based multiplayer first-person shooter has achieved both critical acclaim and commercial success, carving out a significant niche in online competitive gaming.
Blizzard Segment
Blizzard Entertainment, Inc. is renowned for its rich history of creating enduring game franchises that often include expansive lore, immersive gameplay, and engaging community content.
- Massively Multiplayer Online Role-Playing Games (MMORPGs): Blizzard is a pioneer in this space, with World of Warcraft being its flagship title. The MMORPG has set the industry standard with its ongoing expansions, subscription model, and an evolving in-game economy.
- Games Services: Blizzard provides a range of services that enhance user experiences, including digital distribution through Blizzards Battle.net platform. This service offers a myriad of features such as matchmaking, friend lists, in-game voice chat, and access to game updates.
Key Product Franchises Under Blizzard:
1. World of Warcraft: Continues to grow with expansions, in-game events, and a robust community. Revenue comes from monthly subscriptions, expansion packs, and in-game purchases.
2. Overwatch: A competitive multiplayer shooter that has spawned a professional esports league and continues to evolve with new heroes, maps, and seasonal events.
3. Diablo Series: Renowned for its dark fantasy themes, the Diablofranchise has maintained popularity through releases like Diablo IIIand the highly anticipated Diablo IV.The franchise blends action role-playing and immersive storylines.
4. StarCraft Series: A hallmark of real-time strategy games, the StarCraftfranchise has a devoted fanbase and is known for its balance and competitive gameplay, influencing esports.
Revenue Generation
Activision Blizzard employs several revenue-generating strategies across its segments:
- Subscription Fees: Particularly from the MMORPG genre, where World of Warcraftplayers pay monthly fees, and additional revenue comes from game expansions and value-added services.
- Retail and Digital Sales: Physical copies of games, downloadable content (DLC), and in-game purchases are significant income streams, with digital distribution becoming a major component of sales strategy.
- Licensing: The company generates revenue through licensing agreements with third-party distributors for various titles, enhancing global reach.
- Esports: Activision Blizzard has made considerable investments in esports, organizing leagues and events that create additional revenue streams through sponsorships, advertising, and media rights.
Future Direction
While specifics about upcoming projects and releases may vary, Activision Blizzard is focused on continuously evolving its existing franchises with regular updates, expansions, and esports tournaments. Additionally, investments in mobile gaming and live-service models reflect a strategic direction that aligns with current market trends, catering to both traditional and casual gamers alike.