# Bobby Kotick Leads Activision Blizzard Through Economic Turmoil
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-09
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Bobby Kotick Leads Activision Blizzard Through Recession
Meta Description: Explore how Bobby Kotick, Activision Blizzard CEO, leads the gaming giant through challenging times as global sales fluctuate. Discover insights on gaming
URL: https://financedigest.com/bobby-kotick-leads-activision-blizzard-through-economic-turmoilhtml

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Bobby Kotick is acutely aware that the video game industry isn’t entirely recession-proof. For the first time in years, video game sales are predicted to dip after consistently growing since 2015. The sector also experienced a significant boom during the height of the COVID-19 pandemic. However, the longtime [Activision Blizzard CEO](https://www.callofdutyendowment.org/bobby_kotick) has experience leading the company through difficult times, including the Great Recession of 2008. “There is probably more opportunity for our industry than just about any other industry I can think of other than maybe bankruptcy lawyers,” he joked in 2009.

Research from data and analytics [firm Ampere Analysis predicts that global](https://www.financedigest.com/sp-global-acquires-firm-to-bolster-capability-to-track-commodity-shipments.html "S&P Global acquires firm to bolster capability to track commodity shipments") video game sales will contract by 1.2% to $188 billion in 2002. However, the Ampere research shows that the international games and services market from 2019 to 2021 expanded by 26% and [reached $191 billion](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford litigation") in size. During a 2020 appearance on _Leadership Live With David Rubenstein_, Bobby Kotick said that the [video game](https://www.financedigest.com/ubisoft-shares-slump-20-after-french-video-game-maker-warns-on-revenue.html "Ubisoft shares slump 20% after French video game maker warns on revenue") holding company saw “an increase in play, that I think, helped keep people safe at home.”

Kotick continued, “One of the things \[the company noticed\] is there are a lot of new players. People who probably haven’t been passionate game players before, who are finding a lot of joy and satisfaction from gaming.”

**Gaming Is a Social Experience, Even in [Economically Challenging](https://www.financedigest.com/big-bank-ceos-to-sell-lawmakers-on-relief-diversity-efforts-amid-economic-regulatory-challenges.html "Big bank CEOs to sell lawmakers on relief, diversity efforts amid economic, regulatory challenges") Times**

Global lockdowns during the pandemic helped make gaming more attractive to those who wouldn’t normally gravitate toward [video](https://www.financedigest.com/video-game-maker-cd-projekts-first-half-profit-beats-expectations.html "Video game maker CD Projekt’s first-half profit beats expectations") games. [Bobby Kotick said](https://investor.activision.com/news-releases/news-release-details/letter-ceo-bobby-kotick-regarding-activision-blizzards-merger), “Gaming has become a very social experience. People have headsets and microphones, and video. They are playing games against people around the [world](https://www.financedigest.com/old-trafford-attracting-not-just-footballers-from-around-the-world-but-also-investors.html "Old Trafford attracting not just footballers from around the world, but also investors") and competing against each other around the world. So it is not just a traditional form of gaming; it is now even \[that\] much more of a social experience.”

Activision Blizzard’s largest community of players is women aged 25 to 49. “They [play games](https://www.financedigest.com/youre-a-woman-harry-brits-back-game-of-thrones-maisie-williams-to-play-potter.html "You’re a woman, Harry! Brits back Game of Thrones’ Maisie Williams to play Potter") like Candy Crush Saga,” said the CEO. And it takes a massive team effort to keep not only Candy Crush Saga, but all of the video [game company’s](https://www.financedigest.com/game-company-roblox-enabled-girls-sexual-exploitation-lawsuit-claims.html "Game company Roblox enabled girl’s sexual exploitation, lawsuit claims") popular franchises, offering fresh content.

The Santa Monica, California-based video [game company is responsible for developing and publishing some of the largest franchises in the video game industry](https://www.financedigest.com/advertys-multi-patented-and-industry-leading-in-game-viewability-technology-brainimpression-now-available-within-oracle-moat.html "Adverty’s Multi-patented and Industry-leading In-game Viewability Technology BrainImpression™ Now Available Within Oracle Moat"). The [company sees](https://www.financedigest.com/wait-and-see-u-s-companies-curb-investment-as-they-await-fed-moves.html "Wait and see: U.S. companies curb investment as they await Fed moves") those franchises as an excellent road map for a long-term future. “So if you take something like Candy Crush today, over a hundred [million people play it on a monthly](https://www.financedigest.com/whatsapp-bans-2-4-million-indian-accounts-in-july-monthly-report.html "WhatsApp bans 2.4 million Indian accounts in July – monthly report") active user basis. And we’re constantly delivering new content to those players,” said Bobby Kotick. “So there are probably 600 or 700 people in the [development team on a game](https://www.financedigest.com/sony-to-buy-mobile-game-developer-in-push-beyond-consoles.html "Sony to buy mobile game developer in push beyond consoles") like Candy Crush, but they’re constantly introducing new content. On a game like Call of Duty, 1,600 people in six studios around the world [create content](https://www.financedigest.com/veritone-launches-marvel-ai-a-complete-end-to-end-voice-as-a-service-solution-to-create-and-monetise-hyper-realistic-synthetic-voice-content-at-commercial-scale.html "Veritone Launches MARVEL.ai, a Complete End-to-End Voice-as-a-Service Solution, to Create and Monetise Hyper-Realistic Synthetic Voice Content at Commercial Scale") regularly. But there’s not really an example of a few [people on a project](https://www.financedigest.com/global-blockchain-project-fermat-announces-significant-alpha-release-for-the-internet-of-people.html "Global Blockchain Project FERMAT Announces Significant Alpha Release for the “Internet of People”") like ours. These are hundreds or thousands of people on a franchise.”

**Bobby Kotick’s Led the [Company Through Difficult Times](https://www.financedigest.com/oxford-bus-company-outsources-for-the-first-time.html "Oxford Bus Company Outsources for the First Time") Before**

Activision Blizzard has six business units. “One business unit is headquartered in Santa Monica, one in Irvine \[California\], one in London, and then a few different places, but I’m based in Santa Monica,” Kotick said. During the pandemic, the company [adapted to working from home](https://www.financedigest.com/how-the-uk-adapted-to-working-from-home.html "How The UK Adapted to Working from Home") without missing a beat.

Kotick recalled that the company started to [see signs](https://www.financedigest.com/adecco-sees-signs-of-a-hiring-slowdown-at-start-of-2023.html "Adecco sees signs of a hiring slowdown at start of 2023") of COVID in its offices in China. “And so we had an early indication of what might happen, and with our partners, like Tencent and NetEase, we had a pretty good sense of how they were going to [shift to work from home,” explained the CEO](https://www.financedigest.com/cellnexs-ceo-tobias-martinez-steps-down-amid-strategy-shift.html "Cellnex’s CEO Tobias Martinez steps down amid strategy shift"). “We were in a pretty good position to [provide equipment and technology](https://www.financedigest.com/is-your-technology-provider-holding-you-back.html "Is your technology provider holding you back?") to all of our employees. We also collaborate across the world. So we have studios in Sweden, Spain, and the U.K. Also, in places like Albany, New York, and Madison, Wisconsin. And so those studios had already been [collaborating with each other in those remote](https://www.financedigest.com/ensuring-remote-teams-efficiency-with-digital-collaboration.html "Ensuring remote teams’ efficiency with digital collaboration") locations. And it was an adjustment, but one that we were able to manage pretty quickly.”

Interaction with gamers is another thing that gives Activision Blizzard an edge. Kotick said that the [company spends “a lot of time](https://www.financedigest.com/how-can-financial-services-companies-compete-more-effectively-in-times-of-uncertainty.html "How can Financial Services Companies compete more effectively in times of uncertainty?") up front with \[its\] audiences, and in big quantities and with a very thoughtful process, to [really try and draw out from them what it is that they would like to play.” That gives](https://www.financedigest.com/community-giving-an-investment-that-really-matters.html "Community Giving: An Investment That Really Matters") the company a sense of the expectations of the audience. “And if we disappoint that expectation, I think \[the company is\] a very good learning organization, really digging deep into understanding why it didn’t work,” he added.

**Expect Cost-of-Living Challenges To** [Change Spending Habits](https://www.financedigest.com/how-brands-can-adapt-marketing-tactics-to-better-suit-customers-changing-shopping-habits.html "How brands can adapt marketing tactics to better suit customers’ changing shopping habits")

Piers Harding-Rolls is the Ampere research director. “After two years of a huge expansion, the games [market is poised to hand back](https://www.financedigest.com/analysis-bond-traders-get-their-swagger-back-in-rate-obsessed-markets.html "Analysis-Bond traders get their swagger back in rate-obsessed markets") a bit of that growth in 2022 as multiple factors combine to undermine performance,” he stated. “Even so, the year will [end well](https://www.financedigest.com/tennis-panic-attack-ends-tsurenkos-indian-wells-as-raducanu-marches-on.html "Tennis-Panic attack ends Tsurenko’s Indian wells, as Raducanu marches on") ahead of the pre-pandemic performance, and the outlook for the sector as a whole remains positive, with growth forecast to return in 2023.”

However, it’s [full speed ahead](https://www.financedigest.com/go-full-steam-ahead-for-northern-line-tunnel-extension-at-the-residence.html "Go Full Steam Ahead For Northern Line Tunnel Extension At The Residence") for Activision Blizzard and CEO Bobby Kotick, “We have a lot of rich library content that we can create. And then every year we are creating new from the ground up potential franchises as well,” he stated. “I’m generally thinking in about 10- or 20-year increments of time.”


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