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Mobile games are more profitable for Activision Blizzard than PC and consoles combined

While the gaming industry as a whole has certainly expanded significantly over the last decade, no other gaming niche has expanded as much as mobile gaming. With remarkably low entry costs and often equally remarkably aggressive microtransaction schemes, it lends itself to extraordinarily high profit margins, particularly in the case of Activision Blizzard.

As most gamers will know, Activision Blizzard owns the Candy Crush IP which is one of the most popular mobile games of all time. Whether due to its simple theme or its immersive gameplay loop, Candy Crush was a huge source of profit for the publisher, and the company’s quarterly earnings report for Q2 2022 shows that it’s vastly outperforming its PC and console offerings.

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Acquired Activision Blizzard Candy Crush Developer King in 2016, which was probably one of the most profitable business decisions of all time. According to the publisher’s latest earnings report, its mobile games generated $831 million in profit in the second quarter of 2022 alone, accounting for 51% of total revenue for the period. Candy Crush alone, however, brought in $684 million Call of Duty Cell Phone is almost certainly the second highest earner. In comparison, Activision Blizzard’s console titles earned $376 million, while PC releases grossed $332 million overall.

While not surprising in itself, this information puts the potential profitability of mobile gaming in stark contrast to the rest of the industry. Of course, it’s also worth mentioning that the company’s next quarterly report will be even more impressive thanks to the new one Diablo Game. After all, Diablo immortal made over $100 million in just a few weeks of its release, all from cell phones alone.

If it wasn’t clear why Microsoft was keen to acquire Activision Blizzard, this earnings report should explain it. Despite all the controversy the publisher has found itself in over the past few years, the simple truth is that the company is still massively profitable, and that trend isn’t likely to wane anytime soon. This is further underscored by the report’s conclusion, where Activision Blizzard CEO Bobby Kotick said he expects even better earnings growth over the long term.

Curiously, Kotick previously said he’d like to see an Xbox-funded version Candy Crush Game with social features, which would be an interesting project to see in practice. Whether that happens or not, Microsoft will certainly be interested in exploring the publisher’s various profitable IPs once the acquisition is complete, and mobile gaming will surely be a key element of any future developments in this regard.

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Source: Activision Blizzard Q2 2022 Quarterly Report

https://gamerant.com/activision-blizzard-mobile-game-profits/ Mobile games are more profitable for Activision Blizzard than PC and consoles combined

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