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Activision Banks on In-Game, Digital Purchases for Revenue Growth

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Part 6
Activision Banks on In-Game, Digital Purchases for Revenue Growth PART 6 OF 8

A Look at Activision’s Efforts to Improve User Engagement

Record play time and daily active users

One of Activision Blizzard’s (ATVI) priorities is to increase user engagement. We have seen that Blizzard’s daily active users (or DAU) and play time rose to an all-time high in 2Q17, driven by in-game content. Overwatch’s Uprising PvE (player-versus-environment) game mode, released in April 2017, was well received by audiences.

A Look at Activision’s Efforts to Improve User Engagement

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According to the company’s chief operating officer, Collister Johnson, “Hearthstone’s Journey to Un’Goro was one of the best received expansions to-date with record DAUs and World of Warcraft continues to benefit from more regular content updates that Blizzard adds in between major expansions.” 

The Legion expansion continued to attract new users, and Blizzard is planning to focus on content development for this game.

King Digital

King Digital was the only business segment that saw a decline YoY (year-over-year) and quarter-over-quarter in monthly active users (or MAUs). Activision needs to create new content for the online community to increase MAUs in this segment. 

Like Electronic Arts (EA), ATVI is optimistic about its success in live ops, which continues to drive user engagement. The average time spent per player while playing King Digital games in 2Q17 was 35 minutes—higher than that of social media platforms such as Instagram (FB) or Snapchat (SNAP).

We previously discussed how ATVI is banking on the Overwatch League to create a new base of eSports enthusiasts. The creation of this league could set a benchmark for other companies such as EA and Take-Two Interactive (TTWO) to create gaming leagues.

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