As the game industry sees slower year overall as spending declines, Activision Blizzard's poor performance in Q2 2022 stands to reason.

Image: EqualOcean

Activision Blizzard (ATVI), the biggest U.S. video game publisher, announced its Q2 2022 results on August 1, after the close of the market. 

According to the report, Activision brought in total net revenue USD 1.64billion, 28% lower than a year earlier, compared with the average analyst’s projection for $1.6 billion. The total net revenue from product sales was USD 0.3 billion, and revenue from in-game, subscription and other businesses was USD 1.34 billion.

Net income was USD 0.28 billion, down 68% from the same period a year earlier. Excluding certain one-time items (not in accordance with U.S. GAAP), Activision reported adjusted net income of USD 0.38 billion for the second quarter, compared with USD 0.94 billion for the same period in 2021.

Activision Blizzard said the release of Call of Duty Vanguard last fall did not perform as well as expected and had a negative effect on the company's fiscal year. 

The video game industry has faced a sluggish year as it deals with hardware supply chain issues affecting consoles, inflation and a lack of big hits. Interest in gaming has also cooled off as pandemic stay-at-home orders lifted and people resumed outside interests and activities. Activision said it expects revenue and earnings per share to “remain lower year-over-year in the second half.”

On the same day, Activision shares rose USD 0.13, or 0.16%, to close at USD 80.08 in regular Nasdaq trading. Over the past 52 weeks, Activision Blizzard has traded as high as USD 86.90 and as low as USD 56.40. 

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