On the cheapest wow gold heels of Electronic Arts' (NASDAQ:EA) successful earnings report, Activision Blizzard (NASDAQ:ATVI) reported on Wednesday that it also was able to beat earnings expectations, as well as boosting forward guidance for 2015. Making up for another quarter of declining subscribers in World of Warcraft were successes with new titles like Destiny, and Hearthstone, which combined for over 50 million players and $1 billion in revenue over their respective lifespans. Furthermore, Activision was also able to prove how online gaming, much like EA's push into mobile and digital, is a lucrative avenue for a franchise dominated by massive multiplayer titles and head to head competitive franchises that have led to the growth of the eSports business.
Here are some of the key takeaways from Activision's latest report:
Digital channel revenue sets records
This is becoming a trend that investors should get used to when looking to evaluate video game companies: digital and online revenues. Much like how EA set records for its digital revenue, Activision appears to have done them one better. According to company filings, Activision netted $538 million in non GAAP revenue from digital channels in Q1, equaling over 76% of revenues for the quarter, an all time high. Online playing communities have also been a great source of revenue, boasting a 28% increase in revenues year on year in this category. This is mainly due to the continued success of online games like Destiny and Hearthstone as well as the arrival of Call of Duty Online in China last winter in partnership with Tencent.
Also, while World of Warcraft subscriptions fell by nearly 3 million users to 7.1 million players, revenue streams were able to remain steady thanks to price increases in certain markets in exchange for greater "value added services" within the game itself. The drop off isn't much of a surprise given the run the game has had in the lead up to its 10th birthday and the downtime in between expansions, but steady revenue streams enable the game to remain Activision's golden goose and key discussion point for investors to determine whether the quarter can be deemed good or bad. The company also touted the new token system that was introduced to Warcraft to boost revenues further on April 7. Players are now able to trade $20 tokens for in game gold that can be used on their characters and to solve quests, as well as to pay subscription fees, which ensures a way for the company to make money while at the same time cracking down on the often seedy black market of gold "farming", a recurring problem in the MMORPG universe.
Destiny is still popular
Winning over 31 game awards since its release last fall, Destiny's 20 million players still record over three hours of gameplay per day per user, according to company filings. To keep up the momentum, Activision announced a new expansion to come out on May 19, allowing players new maps to explore and, more importantly for the company, increasing the amount of revenue a game can generate based on a single title. While the game received some criticisms from reviewers upon release, it hasn't hindered the addicted, cult like following the game has nurtured, and with added expansions and upgrades, that attachment to the game isn't going to go away anytime soon.
Forward guidance, future launches point to successful 2015
Thanks to over $703 million in non GAAP revenue and $1.28 billion in GAAP revenue, beats of $63 million and $140 million respectively, Activision revised its forward guidance for 2015 non GAAP revenue to $4.42 billion, with $930 million in net GAAP revenue expected for Q2. For Activision, that figure should be easy to obtain thanks to the slate of expansions and new titles that have come out, or are scheduled to come out, this quarter. Blackrock Mountain, the latest Hearthstone: Heroes of Warcraft title was released on April 2 to much acclaim, while Heroes of the Storm has recorded over 11 million beta sign ups for its fall launch. In addition, Diablo III: Reaper of Souls and Call of Duty went online in China, with Diablo touting over 1 million units sold over two offerings, taking advantage of relaxing rules for video games in the lucrative Chinese market.
Further down the road, new titles such as Overwatch, a 6 vs. 6 team shooter, will be released in the fall and may become part of Activision's growing e Sports competition lineup which was popular enough to get an ESPN prime time slot on April 27 for the collegiate Heroes of the Storm tournament.
Another anticipated title is the return of Guitar Hero, which will feature a live version as well as mobile and tablet compatibility. This would indicate a bullish trend is in the works, especially if upcoming titles can meet the expectations of its forward guidance. EA may still be the hottest video game maker to invest in, but Activision has been steadily plugging along for a little over 15 months, and is now touching new highs for share price. Investors should keep tabs on online revenue and in game DLC content from Activision franchises for signs of continued momentum, but this company looks like it can be as good with online multiplayer gaming as EA is becoming with mobile gaming.
Welcome to join Safewow Thanksgiving Gifts for every customer. Using 6% off code "GDT6" or 8% off code“GDT8”for $30+ to buy WOW GOLD US/EU on safewow from November 22 to November 30.
While safewow new member system is online,Remember to be a new member and you will get extral 1%-8% discount for buying any Products.
Safewow WOW GOLD link:https://www.safewow.com/wow-gold-us
https://www.safewow.com/...sgiving_upto8off_seo.jpg