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What Is Driving Activision Blizzard’s MAU Growth?

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Blizzard’s rising monthly active users

As we noted earlier in this series, Activision Blizzard (ATVI) completed its acquisition of King Digital (KING) in 1Q16. This acquisition has helped Activision’s MAU (monthly active users) growth reach impressive levels for the past three quarters.

At the end of 3Q16, Activision Blizzard’s MAU exceeded 482 million. Blizzard noted that it had the largest share of the online player community in 3Q16, with over 42 million users. This user community represents a 25% rise quarter-over-quarter and a 50% increase YoY (year-over-year).

During the 3Q16 earnings call, Activision’s chief operating officer, Thomas Tippl, stated, “Blizzard’s MAUs have more than doubled from two years ago, thanks to compelling new content and the broadening of the portfolio to new franchises and new platforms, including mobile.”

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What’s driving MAU?

Blizzard’s successful launch of World of Warcraft: Legion meant that its MAU rose over 30% YoY. Overwatch was the fastest game launched by Blizzard to reach 20 million players around the world.

Activision has four of the top ten games on next-generation consoles like Xbox (MSFT) and PlayStation (SNE). Driven by seasonal trends and launch timing, King’s MAU fell to 394 million in 3Q16. However, for the 11th consecutive quarter, King had three of the top 15 grossing titles in the United States in the mobile app space.

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