REPORT: 82% of Activision’s Revenue Comes From Only Three Franchises Including Call of Duty
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The massive takeover of Activision Blizzard by Microsoft truly shook the gaming industry to its core. No one anticipated such a giant huge development in early 2021. The studio is still dealing with the lingering effects of all the legal hurdles that it has found itself in, which is still impeding its ability to acquire quality talent. The issues surrounding the workplace and many problems are now returning to haunt them.
Moreover, recent filing information also highlighted an important bit about three major titles bringing a major portion of the revenue, titles like Call of Duty, Candy Crush, and WarCraft together contributing to 82% of all sales.
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The report stated that the franchise model has been quite successful and the success of their three major franchises ride on the success of this model.
“We follow a franchise model and a significant portion of our revenue has historically been derived from based on a relatively small number of popular franchises. These products are also responsible for a disproportionately high percentage of our profits. For example, in 2021, revenues associated with Call of Duty, Candy Crush, and Warcraft, collectively accounted for approximately 82% of our net revenues.”
In new SEC filings, Activision Blizzard's annual report states the company is struggling to attract & retain talent at the company (lists workplace issues + pending MSFT merger as reasons)
Also says Call of Duty, Warcraft, and Candy Crush represents 82% of the company's revenue. pic.twitter.com/T7QVIowyU4
— CharlieIntel (@charlieINTEL) March 4, 2022
Call of Duty should let go of the annual release model and focus on quality
The modern-day era of gaming is suffering from the disease of lackluster releases, and it is mainly because of half-baked titles. This problem has continued to present itself every step of the way, resulting in dramatically horrendous reception. But, Call of Duty’s problems aren’t just limited to just that. Activision has a habit of producing similar titles on an annual basis without adding significant changes.
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This strategy only hurts the franchise and greatly dampens the gaming experience due to repetition. Each new title needs to bring in a certain innovation.
The yearly releases also ruin the life-cycle of their own games, which can impact sales as well. These titles need to have a lifecycle of at least a couple of years before rolling out the next iteration. This will give sufficient time to the studio to work on the titles and even allow them to churn out innovative content.
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