Please ensure Javascript is enabled for purposes of website accessibility

'Call of Duty: Warzone' Has Gained 60 Million Players Since Launch

By Demitri Kalogeropoulos - May 6, 2020 at 1:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's free to play, but still boosting Activision Blizzard's bottom line.

Activision Blizzard's (ATVI -0.51%) venerable Call of Duty franchise isn't too old to learn some new tricks. On Tuesday, the video game developer announced surprisingly strong first-quarter sales growth, in part because players flocked to many of its core titles as stay-at-home time surged.

Revenue landed at $1.8 billion compared to the company's $1.6 billion forecast. Management credited the new Warzone release, the franchise's first big move into the battle royale genre, for helping lift results. "The launch of Warzone really took the franchise to new highs," executives said in a conference call with investors while revealing 60 million players had engaged with the game since its March 10 launch.

A young couple plays video games together.

Image source: Getty Images.

Warzone is free to play but offers in-game transactions, and that spending helped push profitability far higher for the company. The popularity of the title also lifted other content in the franchise, including the premium installment from 2019, Modern Warfare.

Activision Blizzard took the opportunity to raise its 2020 outlook since surging engagement metrics have continued into the start of the fiscal second quarter.

While warning that major, unpredictable risks remain, including the potential for a sustained unemployment spike and disruptions in the supply chain, executives suggested that the second half of the year could be strong. "There is a potential for overperformance," CFO Dennis Durkin said, "if these risks do not materialize."

Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool owns shares of and recommends Activision Blizzard. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Activision Blizzard, Inc. Stock Quote
Activision Blizzard, Inc.
ATVI
$80.59 (-0.51%) $0.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
379%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.