Threat of Mobile Gaming Looms as Activision Revenue Drops by $1 Billion

One year after laying off nearly 800 staff members in a bid to cut costs, Activision Blizzard Inc. is struggling to regain its footing in a shifting industry. The Santa Monica-based game developer saw revenue drop by $1 billion in 2019, its first dip since 2015, and entered 2020 with several challenges, including competition from other mobile gaming firms and the need to revitalize aging franchises. Activision Chief Financial Officer Dennis Durkin said during Activision’s earnings call last month that the company’s revenue, totaling $6.5 billion, was down approximately 13% from the previous year. Increased competition from free-to-play and mobile gaming, such as “Fortnite,” combined with fewer game releases than usual last year drove Activision’s revenue southwards. Also Read: Activision Blizzard Cuts Nearly 800 Jobs Despite 'Best' Financial Year Activision previously projected it would earn $6 billion in 2019, following extensive layoffs. Activision Chief Executive Bobby Kotick acknowledged in the company’s earnings call that the company was falling short of its financial goals. “While we did have record financial results in 2018, we didn’t achieve the reach, engagement and player investment goals we set for ourselves,” Kotick said in an earnings call. “In an industry with great growth prospects, our...

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