According to analysts at Jefferies, Activision Blizzard is on track to experience a substantial boost in earnings, amid consumers’ growing engagement in playing games on their smartphones.
Jefferies analysts Alex Giaimo and Ken Rumph indicated that Activision's mobile gaming division is set to become a $1 billion business by 2023, adding 25 cents of incremental revenue.
A survey commissioned by Jefferies reveals that 90% (of the 1,000 smartphone owners polled) play games on their phones, while 41% reported the time spent on mobile games had increased over the past year.
Activision’s 'CoD Mobile' (Call of Duty) already garnered 100 million downloads, or four to five times annual console/PC sales, the analysts wrote. According to the Jefferies analysts, 'CoD Mobile' alone will contribute $300 million in gross bookings and 7 cents a share in earnings in 2020.