A string of launches in October and November, including Call
of Duty: Modern Warfare II, Warzone 2.0, and World of Warcraft: Dragonflight
from the fantastical world of Azeroth, helped the company hold the attention of
the gaming community.
As inflation squeezes budgets of American households, more
gamers are expected to stick to their favorite gaming franchises, instead of
experimenting with newer titles from other studios, helping companies such as
Activision, analysts have said.
Modern Warfare II delivered the highest opening-quarter
sell-through in the franchise's history and crossed the $1 billion mark within
10 days of its late-October launch, the company said.
The company expects its full-year adjusted sales to grow at
least in high-single digits, bolstered by the launch of games including Diablo
IV.
Adjusted sales in the quarter ended December 31 came in at
$3.57 billion, compared with analysts' average estimate of $3.16 billion,
according to Refinitiv data.
Activision's upbeat results follow drab showings from rival
Electronics Arts and Xbox maker Microsoft.
Activision's $69-billion takeover by Microsoft is being
challenged by the US Federal Trade Commission and being investigated by EU
authorities. Activision said the companies are continuing to engage with
regulators reviewing the transaction.
The end of Blizzard's long-term partnership with China's
second-biggest gaming firm NetEase will rescind gamers' access to the World of
Warcraft game in the country until an alternative partnership is formed.
That is expected to hit the US company's net bookings by
$250 million in fiscal 2023, Benchmark analyst Mike Hickey wrote in a note last
month.
Fourth quarter net income fell to $403 million, or 51 cents
per share, from $564 million, or 72 cents per share, a year earlier. © Reuters