Activision Blizzard, Inc. (NASDAQ:ATVI) stock fell 0.31% (As on Apr 26, 11:17:34 AM UTC-4, Source: Google Finance) after the company reported a 22.3% fall in first-quarter revenues, below analyst estimates of $1.80 billion. Product sales fell 42.8% to $386 million in the first quarter. Earnings from in-game subscriptions and other sources fell 13.6% to $1.38 billion year-over-year. Activision’s performance has taken a hit from lower premium sales for “Call of Duty: Vanguard” and weaker engagement in “Call of Duty: Warzone”, with a return to pre-pandemic habits pressing gamers to spend less time on their consoles. The company, which is being taken over by Microsoft Corp, has also been facing backlash over its response to allegations of internal sexual harassment and discrimination against female employees.

ATVI in the first quarter of FY 22 has reported the adjusted earnings per share of 64 cents, missing the analysts’ estimates for the adjusted earnings per share of 70 cents. Net income for the quarter ended March 31 fell to $395 million, or 50 cents per share, from $619 million, or 79 cents per share, a year earlier. For the quarter ended March 31, 2022, Activision Blizzard’s net bookings were $1.48 billion, as compared with $2.07 billion for the first quarter of 2021. In-game net bookings were $1.01 billion, as compared with $1.34 billion for the first quarter of 2021. For the quarter ended March 31, 2022, overall Activision Blizzard Monthly Active Users (MAUs) were 372 million

Moreover, Call of Duty net bookings on console and PC declined year-over-year in the first quarter, reflecting lower premium sales for Call of Duty: Vanguard versus the year ago title and lower engagement in Call of Duty: Warzone. Call of Duty Mobile net bookings were little changed year-over-year. The Call of Duty teams delivered substantial gameplay improvements for Vanguard and Warzone in the first quarter. Development on this year’s premium and Warzone experiences, led by Infinity Ward, is proceeding very well. This year’s Call of Duty is a sequel to 2019’s Modern Warfare, the most successful Call of Duty title to date, and will be the most advanced experience in franchise history. Blizzard’s first quarter financial results were lower year-over-year, primarily reflecting product cycle timing for the Warcraft franchise. Blizzard’s teams reached important milestones across its key franchises in recent months, and the second quarter represents the start of a period of planned substantial releases across Blizzard’s portfolio.