It is once again earning reports season and our first interest for gaming industry is, ironically, Activision Blizzard heading to its probable second to last earning reports of Q2 2023 and there are reasons to celebrate.
Activision Blizzard reported $2.207 billion of revenue and $583 million of operating income, both a positive of 32% and 62% compared to last year and the second Q2 with high numbers in the past 10 years.
In-game net bookings (DLCs, subscription, etc.) increased to $1.532 billion, however game net bookings also rose to $929 million in Q2 '23, a new six-year high point for a Q2 period and of course, the difference is thanks to the entrance of Diablo IV during the quarter.
Overwatch League virtual wind down
Unfortunately this is the bad news of the reports as Activision Blizzard stated that their esport business is actually one of the biggest negative of the report, only composing less than a single percent of revenue.
To respond to the current headwind and as part of fusioning the Call Of Duty League and Overwatch League, Activision Blizzard will be offering $6 million to every team that desires not to renew on the next Overwatch League season.
But it seems that Activision Blizzard is not optimistic that the season will run as Activision Blizzard is laying off workers in its esports department and pretty much, leaving the decision weight on teams owners.
Some observers think that the pandemic aftermath and the failure of the NetEase association were the precursors of Overwatch LEague problems.
Microsoft and Activision Blizzard extend their deal deadline
As expected, Microsoft & Activision Blizzard announced that they extended their closure deadline to October as they wish to have CMA on board officially.
New terms include that Activision Blizzard CAN sell assets to facilitate the deal closure & higher termination fee and the first one is an important step as it was one of the alternative if the CMA at UK was still in a defiant attitude and selling/licensing games and distribution to third party was an actual alternative, but of course, not with FTC a non-factor and CMA exposed that their implicit associate their activity with them, Microsoft and Activision Blizzard are in full diplomacy mood.
About the new termination fee, from today until August 28th remains the same, after August 29th, the termination fee will raise for $500 million or a total of $3.5 billion and a final top at $4.5 billon if the deals fails to close between September 15th to OCtober 18th and Activision denies further extension.