Activision Blizzard Profits Cut in Half, World of Warcraft Loses 800,000 Subscribers - News

by William D'Angelo, posted on 06 August 2014 / 6,260 Views

Activision Blizzard has released its quarterly report, for the quarter ending June 30, 2014. Non-GAAP revenue increased 10 percent to $658 million, while non-GAAP profits dropped 50 percent to $45 million. GAAP sales dropped eight percent to $970 million, while GAAP profits dropped 37 percent.

World of Warcraft continues to decline as it lost 800,000 subscribers and is now down to 6.8 million players. Activision Blizzard has stated that the next expansion, Warlords of Draenor, will help push up the total number of subscribers.

Digital revenue made up 73 percent of the $658 million in non-GAAP revenue. The strong digital sales is due to Blizzard's games, World of Warcraft, Hearthstone, and Diablo III, as well as digital sales from the Call of Duty franchise.

Activision Blizzard has increased its forecast for the full 2014 calendar year. GAAP revenue forecast has increased from $4.22 billion to $4.24 billion.

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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com.