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Sales of video games increased dramatically during the virus outbreak, and it makes a lot of sense, right? People stayed home and played video games, which was already a multibillion-dollar industry, which skyrocketed every month from the virus outbreak in 2020 to record highs.
Activision Blizzard’s net profits rose by 50% between September 2020 and September 2017 compared to the previous year, according to the Wall Street Journal. Between January and August of 2020, the number of Discord users grew by nearly 70% according to the Wall Street Journal. We already know that video games were enjoying a moment.
However, what goes up must come down, they say. Because of a recent slump in the video game industry, the industry is now going in what seems to be a downward direction.

In spite of the fact that consumers have decreased their spending on games hardware and accessories over the past few months, spending is still better than it was before the pandemic. As you may know, Activision Blizzard, which is currently the subject of a Microsoft takeover, reported lower sales and net income in the second quarter of 2018.
According to Yahoo Finance, Activision Blizzard missed the target in the company’s Q2 earnings report. Call of Duty, which is produced by Activision Blizzard, had mixed results, with the company reporting that it made half its revenue from mobile Armed King, a Candy Crush clone.

You’ve almost certainly heard of it. King’s popularity hasn’t diminished, as Activision acquired it in 2016 and in the second quarter of 2018, King generated more money than PC and console games combined.

The PC and mobile sectors both had roughly one third of the revenue in 2021. Thirty-five percent of the revenue in that quarter was generated by mobile sales. Even though console and Pc sales are declining across the board, Activision’s future looks bright.
The gaming company will receive a seventy-five billion dollar payoff as a result of the Microsoft acquisition.
Call of Duty releases that will generate buzz in the near future will likely provide Activision the boost it needs to shake off this slump. Meanwhile, Electronic Arts, which makes the Sims and numerous other games, is also lagging behind. EA’s revenue forecast fell short of analyst expectations, and it’s still a substantial amount of money.

Even if the company didn’t earn as much as it hoped. EA also suffered from a subpar game release from late 2018 that was met with mediocre reviews and poor fan reception, according to Bloomberg. While Activision, Blizzard is seeking a Call of Duty to save the day. In addition, EA plans to release two big sports games later this year.

Therefore, there appears to be a glimmer of light at the end of the tunnel, fingers crossed, and all that. Industry analysts say that the number of individuals who play games will increase this year, according to the Wall Street Journal. However, to get out of their sales slumps, Activision Blizzard and Electronic Arts are counting on their next releases to be what you might call true game changers.

What do you think of those new EV? Let us know down in the comments.