Prominent video game company Blizzard Entertainment has released its first-quarter 2021 financial report, and it appears that the player base is dropping. The report reveals that it has lost almost 5 million players since this time last year. While profits are still high for Activision as a whole, the dwindling number of players could bode poorly for Blizzard specifically and its future.
Blizzard's troubles began in 2019 due to a slew of incidents. That year's BlizzCon was considered subpar by fans. There were mass layoffs in many of the individual departments, leaving many without a job. Perhaps the most infamous event was the banning of Hearthstone player Blitzchung after he spoke in support of the Hong Kong protests. This resulted in a huge boycott against the company.
As the report from Activision shows, profits actually went up for the company compared to the first quarter of 2020. They ended Q1 2021 with $2.28 billion in revenue, versus Q1 2020's $1.79 billion. Their biggest financial successes were Call of Duty, World of Warcraft, and Candy Crush. All three titles saw huge player count boosts due to the COVID-19 pandemic of last year. That is only for Activision as a whole, however. Blizzard itself struggled. The report reveals that compared to the 32 million active players in Q1 of 2020, Q1 of 2021 only hosted 27 million. It may only be a 1.19% drop, but that is still 5 million players lost.
Due to the controversies that are still impacting the company, this downward trend is likely to continue. There has been another round of layoffs in the past few months. Jeff Kaplan, Vice President of the company and Game Director of Overwatch, left in April. This, alongside many quarantine restrictions being lifted worldwide, could lead to yet another spike in lost players. It's worth noting that Blizzard has been on a downward trajectory for a while. According to MassivelyOP, Blizzard has lost 11 million users since 2018. That is a substantial 5% decrease.
It is difficult to say just what this means for Blizzard. The company still has a massive player base among its core titles. World of Warcraft in particular is doing well, with the recent Shadowlands expansion drawing in players. Diablo Immortal is also set to release this year, despite mixed reactions during its reveal. More information on the upcoming Overwatch 2 could also draw in attention, especially if a release date is teased. Such an established name is unlikely to disappear overnight. Being part of the larger Activision wheelhouse should also ensure its stability. But the overall future for the Blizzard name could be in jeopardy if things don't improve soon.
Source: Activison, MassivelyOP