08 May 2020
Posted in Technology
Investment in key themes is driving Activision Blizzard’s revenue growth, says GlobalData
Following the news that Activision Blizzard reported 21% revenue growth in Q1 2020;
Rupantar Guha, Senior Analyst for Thematic Research at GlobalData, a leading data and analytics company, offers his view:
“Activision Blizzard’s strong performance in Q1 2020 is a reflection of its leadership position in key themes impacting the gaming industry, including game development, esports and its ability to cope with the challenges surrounding COVID-19. The company ranks 5th out of 38 companies in GlobalData’s gaming software thematic scorecard, behind competitors Tencent and Epic Games
“The COVID-19 pandemic has stimulated a surge in gaming worldwide. Activision Blizzard, with popular game franchises such as Call of Duty, World of Warcraft, and Candy Crush, is well-positioned to benefit from this trend. Its latest mobile game, Call of Duty: Mobile, has attracted millions of gamers during the crisis period.
“Activision Blizzard is also a big name in the esports arena. Following the COVID-19 lockdown, the company has demonstrated its ability to transition the highly successful events such as Overwatch League and the newly-introduced Call of Duty League to online formats. This has allowed it to keep leagues up and running during the crisis, thereby satisfying stakeholders, investors, and consumers.
“Activision Blizzard’s scheduled line-up of new games and updates for existing titles will further solidify its position in the market this year. Yet, it will face challenge from Tencent-owned Riot Games’ new titles in the later months of 2020. While Activision Blizzard’s strong growth streak is unlikely to be impacted by this in the short-term, it should also ensure announcement of Overwatch 2 to counter Riot Games.”