Why Activision Blizzard Can’t Release “Overwatch 2” Soon Enough

Activision Blizzard's (NASDAQ: ATVI) Overwatch has sold 50 million copies over the last four years, but despite high player engagement in the first quarter, the franchise wasn't credited for the strong revenue growth in the Blizzard segment. The segment grew revenue by 31% year over year in the first quarter, but the company attributed that primarily to World of Warcraft. Call of Duty, the other marquee shooter for the company, drove a similar performance on the Activision side of the business.

Overwatch has seen its player base decline over the last few years, which is concerning given the investment in esports with Overwatch League and efforts to grow the brand beyond gaming with licensed consumer products.

Blizzard is currently working on Overwatch 2, which was announced at BlizzCon in November and should drive healthy sales for the franchise when it's released. That release can't come soon enough, as the contrast in performance between Call of Duty and Overwatch in the first quarter makes it clear that Overwatch needs an overhaul to contribute more revenue to the company.

Source Fool.com