Activision Blizzard (ATVI) on Monday reported a dip in third-quarter revenue but still beat expectations due to mobile games and new titles.

The Los Angeles-based company posted third-quarter revenue of $1.83 billion, falling short of the $1.88 billion for the third quarter of 2021. But revenue was above the $1.7 billion average that Bloomberg analysts had forecasted with the adjusted earnings per share 18 cents more than the estimated 50 cents.

Mobile platform bookings grew 20% due to Activision's jump into the Chinese gaming market in June with a new title. Licensing for some Blizzard titles in China expire in January 2023 and Activision has said that it is "in discussions regarding the renewal of these agreements, but a mutually-satisfactory deal may not be reached." These agreements brought in about 3% of 2021's net revenue. "Diablo Immortal" is covered by a different long-term contract.

The biggest release for the first half of the year was "Diablo Immortal," which ranked among China's Top 10 highest-grossing mobile games. The title was made in partnership with the Chinese developer NetEase Inc. and turned the popular "Diablo" series into mobile game with over 20 million downloads since it was launched. Activision is set to release another mobile title sometime in 2023, this time taking "Call of Duty" to the app stores.

The current quarter is full of new releases, including the widely successful "Call of Duty: Modern Warfare 2" with over $1 billion in sales in the first 10 days of the title's release. "Overwatch 2" was also released in October and boasted 35 million players in the month. Two more games are slated for release in 2022, "Call of Duty: Warzone 2.0" as a free-to-play title and the next "World of Warcraft" expansion, "Dragonflight."

"Overwatch 2" is also set for a new mode in 2023 and the long-awaited "Diablo 4" is expected to be released next year, as well.

On Tuesday, shares of Activision closed at $72.00, up $0.90, or 1.27%.

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