Warzone driving Activision Blizzard’s records 52% YoY increase in revenue

video games

Activision-Blizzard enjoyed a robust year financially after a clever business model paid off with one of its most well-known titles, ‘Call of Duty: Warzone’.

Call of Duty’s success combined with momentum from 2020’s pandemic’s positive effects on the video game industry, made it a record-breaking year for Activision Blizzard. According to data presented by Finixio, Activision-Blizzard’s Quarterly Net Revenue for Q3 2020 increased by 52.4% YoY to almost $1.95bn.

Activision-Blizzard’s Revenue Grew By Almost 40% YoY In 2020

The video game industry was one of the few silver linings from 2020’s pandemic ravaged year. As people were forced to shelter home and find alternative forms of entertainment, the video game industry saw a massive increase in all areas of engagement. As a result, Activision-Blizzard’s annual net revenue for 2020 increased by 38.5% to $8.09bn from $6.49B.

The last quarterly net revenue recorded before Call of Duty Mobile was released was from Q3 2019, when quarterly revenue totalled $1.28bn. Q3 2020 saw quarterly revenues of $1.95bn – a 52.42% YoY increase.

Call Of Duty Franchise New Business Model A Huge Success – 77% YoY increase In Activision’s Net Revenue

Activision-Blizzard is the parent company of three core business segments; Activision Publishing (Activision), Blizzard Entertainment (Blizzard) and King. Activision owns and produces the Call of Duty Franchise which saw great success in 2020 thanks to a “three-pillared” business model that captured more users than ever before.

This business model was put into action first with the release of Call of Duty Mobile in November 2019.

Then with a free to play version in the hugely popular ‘Warzone’ released in March 2020. The third pillar is the already well-established fan base of the franchise’s annual premium PC/console titles. The additions of the first two pillars exposed Call of Duty to millions of new users and in 2020 sustained more than 100M monthly active users (MAU) which in turn doubled 2019’s net bookings.

The continued success of the Call of Duty franchise led Activision’s net revenue to increase by 77% in 2020 to $3.94bn from $2.22bn in 2019.

North America Biggest Source Of Revenue For Activision Blizzard – Accounted For 55% In 2020

The biggest source of revenue by region for Activision-Blizzard is North America and in 2020 the region accounted for an estimated 55% of its entire revenue. In 2020 revenue from North America amounted to an estimated $4.4bn – a 33% increase from 2019’s estimate of $3.3bn. Revenue from Europe amounted to 2.68bn while revenue from the Asia Pacific was at $972m.