America Accounts For 40%, 50% Or 60% of Activision Blizzard’s Total Sales?

December 3rd, 2019 by Trefis Team
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ATVI: Activision Blizzard logo
ATVI
Activision Blizzard

Activision Blizzard (NASDAQ:ATVI) generates its revenue from sales of video games and in-game purchases across the globe. North America as a region accounted for 52% of the company’s total revenues in 2018, followed by Europe, Middle East & Africa (EMEA) at 35%, and Asia Pacific at 13%. In this note we focus on the region-wise breakup of Activision Blizzard’s revenues, its business model, and revenue trajectory. You can look at our interactive dashboard analysis ~ ATVI Revenues: How Big Is America Market For Activision Blizzard? ~ for more details.

Activision Blizzard Generates Its Revenue From Sales of Video Games And In-Game Purchases Across The Globe. Americas (North America) As A Region Accounts For More Than Half of The Company’s Total Revenues.

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Activision Blizzard’s Business Model

  • What Need Does Activision Blizzard Serve?
    • Activision Blizzard is engaged primarily in developing and distributing games for video game consoles, personal computers, mobile phones, and the Internet.
    • It creates popular sports games such as Call of Duty, World of Warcraft, and Candy Crush.
  • Who Pays To Activision Blizzard?
    • Hardcore as well as casual gamers pay for the games and in-game purchases to Activision Blizzard.
  • What Do Customers Care About?
    • Price
    • Gameplay
    • Graphics
    • Story line
  • Who Are Activision Blizzard’s Competitors?
    • Other gaming publishers such as Electronic Arts, Zynga, Take-Two Interactive, and Nintendo.

Activision Blizzard’s Total Revenue Has Grown At A CAGR of 18% Between 2015 And 2018, But It Is Expected To Decline In High Single-Digits On Average Between 2018 And 2020, Amid Timing of Releases.

The Americas Contribution To Total Sales Will Likely Remain In Line With Historical Range

  • America’s contribution to Activision Blizzard’s total sales has remained in the range of 51.4% to 51.8% in the recent years.
  • We estimate it to remain in the same range going forward, given that North America continues to be the second largest gaming market in terms of revenue (after Asia Pacific), and the U.S. is set to become the largest gaming market in 2019. Also, Activision Blizzard’s content, including Call of Duty, is comparatively more appealing to the gamers in North America.

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