Activision Blizzard announces record quarter, thanks to Diablo

Diablo 4 has proven to be highly lucrative for Activision Blizzard, contributing to a massive financial quarter.
Diablo 4 expansions

Activision Blizzard has announced its financial results for Q2 2023, the period ending 30 June 2023 – and it appears that despite merger-related turmoil, the company is doing incredibly well. Per details included in its latest report, Activision Blizzard just had a record financial quarter, driven by the popularity of Diablo 4, and strong performance in its mobile games division.

As a result of this performance, the company has recorded 50% overall year-on-year growth. Net revenue has risen from USD $1.64 billion in 2022 to USD $2.21 billion in 2023.

Diablo 4 contributed strongly to Blizzard Entertainment’s first USD $1 billion net bookings quarter, becoming Blizzard’s fastest-selling game in the process. Over 10 million players reportedly ‘experienced’ Diablo 4 in June, with players spending 700 million hours in the game.

Blizzard revenue reportedly grew 160% year-on-year as a result of this release, and the ongoing popularity of mobile game, Diablo Immortal.

Read: Diablo 4 Review – Heaven in Hell

The company’s impressive quarter was also aided by the success of King, which set records with ‘strong execution across Candy Crush live operations and user acquisition’.

Activision revenue likewise grew year-on-year, by around 17%. This growth was aided by continuing support for Call of Duty: Modern Warfare 2, and ‘premium Call of Duty sales’. The company expects Activision growth to continue in the coming months, particularly with the impending launch of a ‘major new instalments in the franchise slated for the fourth quarter’. Note the plural in that statement – it’s likely Activision is working on multiple new Call of Duty titles.

Going forward, Activision Blizzard anticipates steady growth, as its franchises continue to experience success and mainstream popularity. That said, the company’s next quarter is likely to appear very different, as it’s expected the Microsoft deal to acquire the company will be closer to fruition or completed by the next reporting period.

Within these newly-released results, the terms of the recent agreement between Microsoft and Activision Blizzard to push back the deadline for their planned merger were revealed. As stated, the terms now include an increased termination fee, should the deal not go ahead by 18 October 2023, and select amendments to the commercial Xbox arrangements with Microsoft reportedly ‘valued at up USD $250 million for each of fiscal years 2023 and 2024’.

In light of ongoing merger discussions, Activision Blizzard has announced it will not be hosting further conference calls, earnings presentations, or detailed financial guidance to accompany its latest financial report. Stay tuned to see what the company’s next steps are, as its relationship with Microsoft evolves.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.