Activision Blizzard Inc.'s shares were up by more than 2% in midday trading Oct. 4 after the video game company said its new Call of Duty: Mobile game passed 35 million downloads since its Oct. 1 launch.
Developed by Tencent Holdings Ltd.'s TiMi Studios unit, the free-to-play shooter game's downloads grew faster than any other mobile first-person or third-person action games on both Apple Inc.'s App Store Google LLC's Google Play. The game also hit the No. 1 app ranking on the App Store based on downloads in more than 100 countries since launch.
Call of Duty: Mobile |
"While it's too early to gauge the longevity of any contribution, the early results are a positive indication of consumer willingness to engage with the game and spend money," wrote Jefferies internet and gaming analyst Alex Giaimo.
Activision is set to launch another game in the franchise, Call of Duty: Modern Warfare, for Sony Corp.'s PlayStation 4, Microsoft Corp. and PCs on Oct. 25. Giaimo noted that the early traction of the mobile game provides additional cushion to Activision's fourth-quarter guidance by helping to mitigate reliance on Modern Warfare.
Earlier this year, Activision restructured its business by slashing 8% of its workforce and repositioning focus on its key titles, including Call of Duty. The restructuring included transferring the rights to the online gaming franchise Destiny back to original developer Bungie Inc.
"Activision is headed into its first holiday quarter without revenue from Bungie's Destiny series, and Call of Duty: Mobile could go a long way in filling that gap," said Neil Barbour, an associate analyst focusing on gaming with Kagan, a media market research group within S&P Global Market Intelligence.
Both Activision and its chief rival Electronic Arts Inc. plan to keep expanding their key franchises to mobile, which continues to be a key revenue driver for most major multiplatform game publishers. According to a recent research report by Nielsen Holdings PLC's SuperData research unit, mobile gaming revenue grew 14% in July, offsetting declines in PC and console digital revenue, which led to a 5% year-over-year increase in worldwide spending on digital games to $9.02 billion.- Author
- Anser Haider

Call of Duty: Mobile