Diablo 4 helps Blizzard smash $1bn barrier in latest financial quarter

Activision Blizzard's latest financial earnings report has arrived, and while it's good news for the company as a whole, Blizzard in particular has had a stellar quarter, surpassing $1bn in net bookings for the first time ever thanks to the launch of Diablo 4.

In its second quarter earnings report for the latest financial year, Activision Blizzard announced 50 percent year-over-year growth in net bookings, with the company amassing $2.46bn compared to the $1.64bn it reported in the second quarter of 2022.

That's down to a mix of increased "player investment in live operations content" across games such as Call of Duty, which rose by 17 percent, and "another quarterly net bookings record at King". The big applause, though, is reserved for Diablo 4, which, as of the end of Blizzard's record-breaking second quarter - which saw the studio's segment revenue grow by 160 percent year-over-year and its operating revenue more than triple - has "sold-through more units than any other Blizzard title at an equivalent stage of release."

Activision expects that initial success to continue reaping rewards, noting the imminent release of Diablo 4's first live-service season, and "strong progress on expansions that will deliver major new features and continue the game’s acclaimed narrative for many years to come."

Interestingly, Diablo 4's success also appears to have had a knock-on effect for Blizzard's divisive free-to-play mobile game Diablo: Immortal, which saw a significant boost in monthly net bookings shortly after Diablo 4's release in June.

Elsewhere, Activision Blizzard has reported a decline in player engagement and investment for Overwatch 2, which may go some way to explaining its imminent jump to Steam. And as for World of Warcraft, there's little in the way of major trumpeting, but Activision does say the release of last year's Dragonflight expansion has helped the MMO's subscriber retention in the West remain "higher than at the equivalent stage of recent Modern expansions."

Activision Blizzard's earnings note also reiterates its recent mutual agreement with Microsoft to extend the parties' acquisition deadline from 18th July to 18th October. If the deal still hasn't gone through by then, Microsoft will be required to pay Activision $4.5bn in termination fees.