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Activision: 'Candy Crush Jelly Saga' Is Outperforming 'Hearthstone' Mobile

Summary

The $5.9 billion acquisition of King Digital was judicious.

Activision Blizzard is now a leader of the fast-rising mobile games industry.

Revenue from mobile games is estimated to hit $41.5 billion this year.

King Digital’s latest game, Candy Crush Jelly Saga had estimated March net global sales of $15.4 million.

Hearthstone: Heroes of Warcraft mobile’s monthly sales is threatened by Supercell’s Clash Royale.

Activision Blizzard (NASDAQ:ATVI) has completed its $5.9 billion takeover of King Digital last February. This acquisition propelled Activision in becoming the world's 3rd top-grossing mobile publisher.

King Digital's 318 million unique Monthly Active Users is helping Activision profit from the $41.5 billion/year gold mine of mobile games. Getting a bigger slice of that pie requires publishers to have the most number of active loyal players.

However, user acquisition cost is a big burden to any games publisher. As per Fiksu's estimates, the Cost Per Loyal User acquisition on the iOS platform is $3.50. The CPI (Cost Per Install) of new Android/iOS games also runs between $1.8 and $2.5.

Without the games portfolio and user base of King Digital, Activision would still be a bench player in mobile. It would have taken years (and billions of dollars in development/marketing) before Activision could build a platform as large as King Digital has.

Taking over King Digital gave Activision instant access to a massive pool of loyal players.

Candy Crush Games Are Strong

King Digital's Candy Crush franchise...


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