Activision said it faced moderate demand for Call of Duty and other games in the fourth quarter; Misses Adjusted Sales Estimates
Activision Blizzard, which is being acquired by Microsoft for $68.7 billion (roughly Rs. 5,13,300 crore), missed market estimates for fourth-quarter adjusted sales on Thursday as rising Pandemic-fueled sales for its games such as Call of Duty showed signs of cooling. US video game sales have surged since the pandemic began as people are forced to stay home despite movement restrictions to curb the spread of the virus. According to data from research firm NPD, total consumer spending on video games hit a record high of $60.4 billion (around Rs 4.51300) in 2021, up 8% from 2020.
However, a vaccine-assisted return to pre-pandemic habits such as eating out and meeting in person has given that impetus.
The video game publisher said net bookings for Call of Duty on console and PC were down year-over-year in the fourth quarter, reflecting lower premium sales for Call of Duty: Vanguard compared to last year. previous edition and lower engagement in Call of Duty: Warzone.
On Tuesday, Rival Electronic Arts had lowered its adjusted annual sales forecast and missed quarterly estimates with fewer consumers buying new game titles.
Activision’s adjusted quarterly sales came in at $2.49 billion (about Rs 18,600 crore), compared to analyst estimates of $2.82 billion (about Rs 21,100 crore), according to IBES Refinitiv data.
Net profit for the quarter rose to $564 million (approximately Rs 4,200 crore), or 72 cents (approximately Rs 53) per share, in the quarter ended December 31, from $508 million (approximately 3 800 crore rupees), or 65 cents (about Rs. 49) per share, a year earlier.
© Thomson Reuters 2021
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