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

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Part 5
Activision Banks on In-Game, Digital Purchases for Revenue Growth PART 5 OF 8

Factors Driving Activision’s User Growth

Monthly active users

Activision has three primary business reporting segments—Activision, Blizzard, and King Digital. In 2Q17, Activision’s (ATVI) monthly active users (or MAU) figure was 407 million. The 2Q17 MAU numbers for Activision, Blizzard, and King Digital totaled 47 million, 46 million, and 314 million, respectively.

Although Blizzard did not have any new full-game releases in 2Q17, strong content updates drove its MAU. Blizzard’s MAU rose 38% YoY (year-over-year) and 12% quarter-over-quarter in 2Q17. Blizzard’s MAU has increased more than 100% since 2015, which highlights the segment’s ability to increase its audience reach across several platforms, gaming genres, and business models.

Factors Driving Activision’s User Growth

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Overwatch community continued to rise in 2Q17

In 2Q17, ATVI’s Overwatch community continued to grow its MAUs. This game has grown its MAU in every quarter since its launch. We noted in the previous part of this series how Activision (ATVI) aims to leverage the game’s popularity by announcing an eSports league. Hearthstone’s MAU increased to an all-time high, driven by the expansion of Journey to Un’Goro.

The MAU for Activision rose to 47 million in 2Q17, driven by the popularity of Call of Duty, which has a large user base across several titles. Content updates for this game positively impacted growth in its MAUs as well. 

During Activision’s 2Q17 earnings call, the company’s COO, Collister Johnson, stated, “In particular, the release of Zombies Chronicles, Activision’s first large content drop to a community in year two after a game launch, helped to grow Call of Duty: Black Ops III MAUs quarter-over-quarter.”


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