Popular video game manufacturers Activision Blizzard Incorporated have raised their full year forecast for 2014, because their sales have exceeded the expectations that they had going into the year. Their second quarter results have been better than they had expected, and they are also counting on the sales from the release of upcoming games like “Destiny,” and “Call of Duty: Advanced Warfare. The news increased the value of the company’s shares, making it rise by 3 percent in after hours trading, after it closed at $22.36 on Tuesday.
The company said the high digital sales of its “Call of Duty” and “World of Warcraft” franchises drove their non GAAP revenue to $658 million in the second quarter, which was higher than the $608 million they made last year. The company’s Chief Executive, Bobby Kotick said the digital revenue was 73 percent of the total they made for the quarter, which is a record for the company, which makes them enthusiastic about the products they will release in the back half of the year. He is expecting the new “Call of Duty: Advanced Warfare,” to be the most successful game of 2014.
With their sales exceeding expectations, Activision has raised its 2014 non GAAP revenue forecast to $4.7 billion, with earnings of $1.29 per share, which is higher that their earlier forecast of $4.67 billion, and earnings of $1.27 per share.
In addition to the company’s expectation of robust sales of the new “Call of Duty” game, Activision is also expecting huge sales numbers from their latest science fiction shooter game, “Destiny,” a game that the company invested $500 million into. The company released a beta version of the game, and video gamers have been responding well to it, and it already has strong pre-order numbers, so they are expecting it to do very well once it is released.
Activision is also expecting strong sales from their billion dollar “Skylanders” franchise for children; they intend to release the newest edition of the game called “Skylanders Trap Team” later in the year, which will also help them to increase their revenue in the back half of the year.
With the release of these three new games, Activision might surpass their expectations for the rest of the year, because the “Call of Duty” franchise has been their best selling game franchise to date, and will likely surpass the huge sales they made from the previous edition they released “Call of Duty: Ghosts,” which came out in November 2013, and coincided with the release of the next generation consoles, the Playstation 4 and Xbox One, which affected the sales numbers. There is a lot of buzz surrounding “Advanced Warfare,” and it is expected to break the franchise sales record, which will make a lot of people at Activision happy.