King vs. Activision: Who Reigns Supreme in Revenue?
In recent years, the landscape of Activision Blizzard’s financial performance has been a fascinating interplay between its three major segments: Activision, Blizzard, and King. While Activision, historically known as the biggest revenue generator, has been challenged by King’s consistent performance, the answer to whether King makes more money than Activision isn’t a simple yes or no. The answer is no.
For example, in Q1 2023, King brought in $739 million, surpassing Activision’s $580 million and Blizzard’s $443 million. However, looking at overall annual revenues and long-term trends, Activision still typically leads in revenue generation, though King’s contributions are undeniably substantial and strategically important, with King being approximately 31% of Activision’s total net revenue. The dynamic shifts from quarter to quarter, dependent on game releases, seasonal trends, and the enduring appeal of each segment’s flagship titles.
Understanding the Revenue Streams
To truly understand the revenue contributions of each segment, it’s essential to look at the specifics of their respective business models and key titles.
Activision: Console and PC Powerhouse
Activision is primarily driven by its console and PC games, most notably the Call of Duty franchise. This blockbuster series has consistently generated billions of dollars in revenue through game sales, downloadable content (DLC), and in-game purchases. While the revenue from Call of Duty can fluctuate annually depending on the release schedule and reception of new titles, it remains a significant financial pillar for Activision Blizzard.
Blizzard: The PC Gaming Giant
Blizzard’s revenue comes from a diverse portfolio of PC games such as World of Warcraft, Diablo, and Overwatch. World of Warcraft’s subscription model and expansion packs provide a steady stream of income, while Diablo and Overwatch rely on game sales and in-game transactions. Like Activision, Blizzard’s financial performance is heavily influenced by the release of new content and the sustained engagement of its player base.
King: The Mobile Gaming Master
King’s primary source of revenue is its mobile game portfolio, with Candy Crush Saga being the undisputed king. The free-to-play model, coupled with in-app purchases for extra lives and boosters, generates substantial revenue from a vast and diverse player base. Unlike Activision and Blizzard, whose revenues can be more cyclical, King enjoys a relatively consistent stream of income due to the enduring popularity of its core games.
The Microsoft Acquisition: A New Chapter
The recent acquisition of Activision Blizzard by Microsoft for $69 billion marks a significant shift in the gaming industry. With gaming now central to Microsoft’s future, the performance of all three segments—Activision, Blizzard, and King—will be crucial in driving growth and innovation within the Xbox ecosystem. The combination of Activision Blizzard’s diverse portfolio and Microsoft’s resources opens up new possibilities for game development, distribution, and monetization.
How Much Does King Make Compared to Activision?
In 2022, King’s revenue reached almost $2.79 billion. By comparison, while specific annual revenue figures for Activision alone aren’t always broken out separately in Activision Blizzard’s reports, we know that the Activision segment, which develops and sells video games, is the company’s biggest revenue and profit generator.
While there are periods where King may out earn Activision, such as in Q1 2023, Activision still generates more total revenue than King.
Frequently Asked Questions (FAQs)
Here are 15 frequently asked questions to provide additional valuable information:
1. When did Activision Blizzard acquire King?
Activision Blizzard acquired King on February 23, 2016, for a deal of $5.9 billion.
2. How much did Activision Blizzard pay for King?
Activision Blizzard paid $5.9 billion to acquire King in 2016.
3. What is King’s most popular game?
Candy Crush Saga is King’s most popular and highest-grossing game.
4. Where is King headquartered?
King was founded in Sweden in 2003.
5. Who is the CEO of King?
Riccardo Zacconi has served as the CEO of King since he co-founded the company in 2003.
6. How many users does Activision Blizzard’s game network reach?
Activision Blizzard’s game network reaches around 500 million users in 196 countries.
7. Who are the top gaming companies by revenue?
In the second quarter of 2023, the top gaming companies by revenue were Tencent, Sony, Apple, Microsoft, and NetEase.
8. What is Activision’s biggest money maker?
Historically, Call of Duty has been Activision’s biggest money maker, but there are periods that King brings more money to Activision Blizzard than Call of Duty.
9. How much money has Candy Crush Saga earned?
On its 20th anniversary, King announced that Candy Crush Saga has earned $20 billion in consumer spending.
10. What are Activision Blizzard’s major business segments?
Activision Blizzard’s major business segments include Activision, Blizzard, and King.
11. How did the Microsoft acquisition affect Activision Blizzard?
Microsoft acquired Activision Blizzard for $69 billion, making gaming central to Microsoft’s future plans.
12. How much money does Call of Duty make?
Call of Duty has generated $1.5 billion in lifetime revenue.
13. Who is the highest-paid gaming CEO?
In 2023, Robert Antokol (Playtika) was the highest-paid gaming CEO at $372 million. Bobby Kotick (Activision Blizzard) was second at $154.6 million.
14. How does King make money?
King makes money primarily through in-app purchases in its free-to-play mobile games, such as Candy Crush Saga.
15. How can I learn more about the impact of games on learning?
You can learn more about the educational potential of games by visiting the Games Learning Society website at https://www.gameslearningsociety.org/.
Conclusion
While King’s financial performance is undoubtedly strong and has even, at times, surpassed Activision’s quarterly revenue, Activision’s diverse portfolio and historical dominance in the console and PC gaming markets ensure that it typically remains the larger revenue generator. The acquisition by Microsoft sets the stage for a new era, where the combined strengths of Activision, Blizzard, and King will be leveraged to drive innovation and growth in the gaming industry. The ongoing success of each segment will be vital in shaping Microsoft’s gaming future.