Analysts at Berenberg Bank provided their views on Activision Blizzard, Inc. (NASDAQ:ATVI) following the disappointment of the Call of Duty: Vanguard launch in November.

The company’s Q4/21 results were particularly disappointing, with net bookings of $2.9 billion, falling 12% short of Street estimates and adjusted EPS of $1.25 coming in 4.6% short of expectations. Given the acquisition process that is underway with Microsoft, no guidance was given for the full 2022-year.

The company’s management has taken the decision not to release a new Call of Duty in 2023 – the first year since 2005 that a new iteration of the franchise has not been released. The plan is to give this year’s planned Modern Warfare release a longer tail, driving more in-game revenue while ensuring Warzone engagement is not cannibalizing unit sales for a new release.