Activision Blizzard, Inc. (NASDAQ:ATVI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 04:30 pm ET


Activision Blizzard, Inc. (NASDAQ:ATVI) Q3 2019 Earnings Conference Call - Final Transcript


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Q & A

Thank you. [Operator Instructions] Our first question today will come from Michael Ng with Goldman Sachs.

Michael Ng

Hi. Thank you very much for the question. Just on Modern Warfare with the absence of a season pass and with implementation of the new in-game system, could you talk about what that means for in-game spending growth next year versus Black Ops 4? Thank you very much.

Robert Kostich

Yeah. Thanks for the question, Mike. It's Rob. I think it's really important to first talk about our overarching principles and what we're trying to do. We're focused on bringing the community together, building one big community and keeping a plan together through great content and features. The changes that we've been making are certainly in service of those principles and we believe they are not -- not only great for our players, but also for growing and sustaining long term engagement, which of course is critical to our long-term success. And I do want to talk about some of the things you mentioned in some of those changes.

We did eliminate the season pass and instead we will be focused on dropping free content to the community, so everyone can enjoy it together. Tomorrow is actually going to be the first free content drop for Modern Warfare and we're excited about that and the much bigger things that are yet to come for the community. And we also implemented cross plays for the first time in the franchise to keep friends plan together, no matter what platform they are on. And I think this was actually really important and I'm seeing it and how friends groups are connecting already. Players who haven't played Call of Duty together in years are doing so and we think that's really great for the community overall.

Now, we're also implementing a new Battle Path system, which you mentioned and it's going to launch later this quarter. We feel it's the right thing to do for the game and how it's designed. And more importantly, we think it's the right thing to do for our players, that launch is still ahead of us. But we've been really encouraged by the early response from the community to the change that we're making there. So in terms of growth, we do feel good both about our long-term engagement potential as well as the new system that we're implementing.

Now I'll let Dennis speak to how we think about in-game revenue kind of this quarter and beyond, but on the content side, we have plans for seasons and events that we believe we will keep the community playing together for the long haul. Modern Warfare is really a great game. It's a deep experience, and we believe it's just scratching the surface of what it can do. We keep saying in many places that the launch of Modern Warfare is just the beginning and it truly is, there is a ton more to look forward to hear. Dennis, is there anything else you'd add?