In recent years, game spending has shifted from traditional retail to digital purchases and stores, and Activision is one of the companies capitalizing on this.
During the company’s second quarter, which ended June 30, the company generated 9 million in revenues. Of that total, 1 million came from digital channels. That means that the publisher made more than 80 percent of its total sales from these online means. This shows the power that digital and connected games have, and Activision is definitely one of the game makers that knows how to deliver content for that audience.
In its quarterly report, Activision pointed out games like Hearthstone: Heroes of Warcraft, Heroes of the Storm, and Destiny that have attracted players and spending. Combined, they have more than 70 million registered players and have generated over .25 billion in total spending. While some of that comes from the physical Destiny disc, a lot also comes from the 100 percent digital in-game purchases for Hearthstone and Heroes of the Storm as well as Destiny’s expansions.
But it’s not just those newer Activision and Blizzard properties that are performing well in digital. The publisher also notes that Call of Duty’s year-over-year Q2 earnings saw a significant increase.
“Season pass, downloadable content, and microtransaction offerings have helped drive increased engagement and monetization [for Call of Duty],” reads the Activision quarterly report. ”
Activision Publishing boss Eric Hirshberg specifically noted Call of Duty: Advanced Warfare’s Supply Drops, which players can buy and use to get perks and killstreak rewards during matches. These items have helped Activision give a boost to its average revenue per player.
And looking forward, the publisher should have no trouble continuing its digital success. In September, Activision and Bungie will release The Taken King expansion for Destiny. This “mega expansion,” as the company is styling it, will go on sale for and most people will buy it digitally. Activision will likely also continue offering up more microtransactions in Call of Duty: Black Ops III when it debuts in November.
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