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Activision Aims to Increase Its User Base and Player Engagement

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Dec. 4 2020, Updated 10:52 a.m. ET

Over 50 million users in 4Q16 for Activision

As seen in the chart below, Activision (ATVI) has three primary business segments—Blizzard, Activision, and King Digital. Overwatch drove user engagement for Blizzard in 4Q16, as it was the fastest game to reach 25 million players. Revenues in this business segment rose 46% YoY (year-over-year) to $669 million.

World of Warcraft’s MAU (monthly active users) rose 10% YoY in fiscal 2016 and 20% YoY in 4Q16, primarily driven by the successful launch of Legion in 3Q16. Although Activision’s revenues fell 23% YoY to $1.2 billion in 4Q16, its MAU rose to an all-time high of 50 million, driven by Call of Duty and Destiny. Activision’s MAU has increased 23% in the last two years.

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King Digital’s revenues totaled $436 million in 4Q16 and ~$1.6 billion in fiscal 2016. User engagement was driven by the highly successful Candy Crush franchise, which had an MAU of 405 million in 2016. King Digital also noted that it had two of the top ten “highest-grossing titles in the U.S. mobile app stores for the thirteenth quarter in a row.”

Over 43 billion hours of gameplay in 2016

Activision Blizzard stated that its in-game experiences resulted in more than 43 billion hours of gameplay in 2016, which is on par with content streaming giant Netflix (NFLX) and more than 1.5 times greater than social media firm Snapchat.

King Digital’s daily active user time spent rose to 34 minutes per day. In fiscal 2016, Activision also extended its viewer reach on social media networks such as Facebook (FB) and Instagram by 50% YoY for its e-sports network, Major League Gaming. 

Activision Blizzard acquired Major League Gaming in early 2016. Major League Gaming reached 50 million views and rose 67% quarter-over-quarter in 3Q16 as well, driven by its partnership with social media giant Facebook (FB).

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