news/EA/2023.02.06/'Call of Duty' steers Activision sales in tough quarter for game makers.txt

Feb 6 (Reuters) - Videogame publisher Activision
Blizzard beat Wall Street estimates for fourth-quarter
adjusted sales on Monday, thanks to the success of the latest
game in its "Call of Duty" franchise.A string of launches in October and November, including
"Call of Duty: Modern Warfare II", "Warzone 2.0" and "World of
Warcraft: Dragonflight" from the fantastical world of "Azeroth",
helped the company hold the attention of the gaming community.Activision's results are a bright spot as some of its
industry peers including Electronics Arts, Take-Two
Interactive Software and Xbox maker Microsoft
have reported drab results.The video-gaming industry is feeling the squeeze of
inflation as American households tighten their budgets. However,
Activision has managed to largely avoid the issues plaguing the
wider industry and keep the buzz around its news launches
through its focus on building strong gaming franchises."Modern Warfare II" delivered the highest
opening-quarter sell-through in the franchise's history and
crossed the $1 billion mark within 10 days of its late-October
launch, the company said."Our specialists have highlighted a flight to quality by
gamers and that is what Activision Blizzard is experiencing,"
said Nicholas Cauley, an analyst at global research firm Third
Bridge.Activision expects its full-year adjusted sales to grow at
least in high-single digits, bolstered by the launch of games
including "Diablo IV."Adjusted sales in the quarter ended Dec. 31 came in at $3.57
billion, compared with analysts' estimate of $3.16 billion,
according to Refinitiv data.Activision's $69-billion takeover by Microsoft is being
challenged by the U.S. Federal Trade Commission and being
investigated by EU authorities.  Activision said the companies
are continuing to engage with regulators reviewing the
transaction.Fourth quarter net income fell to $403 million, or 51 cents
per share, from $564 million, or 72 cents per share, a year
earlier.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil
D'Silva)