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Activision/Blizzard sees sharp decline in revenue.
- Thread starter remember_spinal
- Start date
- Business Analysis
ChorizoPicozo
Member
Imagine MS's luck if after the acquisition is approved, CoD losses their throne?
SlimySnake
Flashless at the Golden Globes
Gotta love publishers seeing massive drops in revenues after getting greedy and trying to maximize revenue by targeting last gen consoles 2 years after next gen launch. It's clear no one wants to play their last gen trash. Locking Warzone 2 to last gen isnt going to help the way they think. Modern Warfare 2 and Warzone 2 should help them recoup some of their lost revenue this year but i doubt they will be setting new records despite launching two of their most anticipated releases since MW2 all the way back in 2009.
No sympathy from me. Glad to see them get their comeuppance.
James Sawyer Ford
First Sony. Now Activision. Whose next?
No sympathy from me. Glad to see them get their comeuppance.
James Sawyer Ford
First Sony. Now Activision. Whose next?
tmlDan
Member
man, this makes me sad - from Blizzard being the Golden Goose of gaming to this. (Activision has been shit for a decade and only Hit on MW2 2019)
I really hope Diablo 4 hits, it looks good so far but im skeptical as all hell.
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EverydayBeast
thinks Halo Infinite is a new graphical benchmark
Cod vanguard is a repeat from 2018’s ww2 they gave us the same game.
Post in thread 'Activision/Blizzard sees sharp decline in revenue.' https://www.neogaf.com/threads/acti...arp-decline-in-revenue.1639706/post-266431128
Yep
This is silly because most of Activision's revenue and operating profit is actually from the greedy mobile releases and MTXs. Without it Activision would have tanked way harder this quarter.
James Sawyer Ford
Gold Member
Gotta love publishers seeing massive drops in revenues after getting greedy and trying to maximize revenue by targeting last gen consoles 2 years after next gen launch. It's clear no one wants to play their last gen trash. Locking Warzone 2 to last gen isnt going to help the way they think. Modern Warfare 2 and Warzone 2 should help them recoup some of their lost revenue this year but i doubt they will be setting new records despite launching two of their most anticipated releases since MW2 all the way back in 2009.
No sympathy from me. Glad to see them get their comeuppance.
Sony’s drop is easily explained by lack of releases
DaGwaphics
Member
The day that closes is going to be fun.
Orville sales will skyrocket in preperation.
oldergamer
Member
That's dumb. They are greedy for wanting to make profit? seriously you must have a excellent business degree.Gotta love publishers seeing massive drops in revenues after getting greedy and trying to maximize revenue by targeting last gen consoles 2 years after next gen launch. It's clear no one wants to play their last gen trash. Locking Warzone 2 to last gen isnt going to help the way they think. Modern Warfare 2 and Warzone 2 should help them recoup some of their lost revenue this year but i doubt they will be setting new records despite launching two of their most anticipated releases since MW2 all the way back in 2009.
No sympathy from me. Glad to see them get their comeuppance.
I really doubt the issue was cross gen (despite my distaste for it).Gotta love publishers seeing massive drops in revenues after getting greedy and trying to maximize revenue by targeting last gen consoles 2 years after next gen launch. It's clear no one wants to play their last gen trash. Locking Warzone 2 to last gen isnt going to help the way they think. Modern Warfare 2 and Warzone 2 should help them recoup some of their lost revenue this year but i doubt they will be setting new records despite launching two of their most anticipated releases since MW2 all the way back in 2009.
No sympathy from me. Glad to see them get their comeuppance.
oldergamer
Member
what did activation release?
SlimySnake
Flashless at the Golden Globes
Profit at the expense of quality is greed, Gordon Gekko.
SlimySnake
Flashless at the Golden Globes
Nope.
John Wick
Member
Also their income is down to selling hardware at a loss and buying some studios.
Leyasu
Banned
It's almost like the worst of the Pandemic is behind us and people can go out again..
itsjustJEFF
Member
Microsoft should be able to revise that initial offer... let's take a few Billion off the top there lol
Kagey K
Banned
Not too shabby when you consider one has hardware/software/accessories/MTX/subscriptions in that total and the other only has games/MTX and a WoW subscription. Thought the discrepancy would be larger.
Sony also has a cut of every game sold on it's store.
I'm not sure what you're showing me. All I see is that a massive revenue decline was offset by King's Candy Crush Saga and massive MAU decline was offset by Diablo Immortal. ie the greedy mobile games full of mtxs are what's doing well for them.
supernova8
Banned
In other words they did really well last year so this year's numbers were always going to look bad in comparison.
I appreciate clickbaiters gotta hustle but a more apt title would be "overall earnings boosted by pandemic come back down to earth"
I appreciate clickbaiters gotta hustle but a more apt title would be "overall earnings boosted by pandemic come back down to earth"
SlimySnake
Flashless at the Golden Globes
I read your post wrong.
If the mobile MTX is helping them, fine. Couldnt care less. They had the losses because of shitty products they put out in the console space.
John Wick
Member
Yes as one has hardware being sold at a loss and the costs of R&D for PSVR2 and buying studios. Not too shabby at all.
BLizzard also made a couple of purchases btw Bungie wasn't in the Sony reports.
But yeah, HW is a margin killer for everyone
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Kagey K
Banned
I don't believe that hardware is being sold at a loss, and haven't seen any proof of that since the PS3 days.
SlimySnake
Flashless at the Golden Globes
They had plenty of quarters last year with a total of zero releases. Jan-March, July to September, and no big holiday releases from October to December. Still sold way better than just 6.4 million units.
If anything, the lack of competition shouldve allowed Horizon FW and GT7 to have better legs. I mean Ratchet sold just 1 million that quarter and Returnal only 500k. So 1.5 out of the 10.5 million units were their "new" games. They had no releases in Jan-March 2021 but they still sold 9.0 million older first party titles during April-June. Thats down to just 6.4 million, and again HFW was bundled with every single PS5 starting from around May and Sony is counting that. Sony sold 2.4 million PS5 units last quarter Even MLB the Show launching on Switch this year didnt help offset any losses.
The drop is far steeper than July-September last year when they had to rely on Ratchet and Returnal's legs, and had a much smaller userbase. 6.4 million with bundled sales, switch sales, PC sales, and HFW & GT7 in just their 2nd and 3rd month is atrocious.
The industry sales are down. NPD reported a 13% drop in spending. Again, this is typically the time where sales ramp up as more and more people have next gen consoles and start to buy newer games. This of course isnt on Sony alone as Microsoft, Activision, EA and Ubisoft have all phoned in this year, but the fact that their first party sales have poor legs is proof that people just arent that excited about their games anymore. Sony was one of the few publishers last gen that was pushing next gen experiences. They kind of just stopped after Ratchet and Returnal.
Jaybe
Member
Sad thing is next quarter is probably going to be potentially even more dismal than this past one for the industry’s major players. No big, hyped third-party games, FH5 Hot Wheels will probably sell okay (not sure how accounting works for the premium editions sold at launch though) and I wager TLOU1 will be middling sales-wise (<2million first month) and be a hard consumer message to Sony. Looking further on, only Sony and ABK will be saved by their huge holiday releases (GOWR, COD). EDIT: forgot PC Spider-man release this month, maybe Sony will manage flat YoY with that addition.
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oldergamer
Member
not what is happening however.
cinnamonandgravy
Member
still completely wild that WoW got away with two decades of charging players monthly fees.
as an investor: bowing down.
as a gamer: embarrassing.
as an investor: bowing down.
as a gamer: embarrassing.
oldergamer
Member
Fanboys are pathetic and I've been an activision hater for years. hated bobby kotic since the early 2000's, and activision was the only company I ever considered take a dump on a game they published for PC and mail it back to them ( I seriously considered it!). However, there is no question how successful they have been. Anyone saying other wise is a pure fanboy.We get it guys, Activision Blizzard is now a failing company with sub par IPs so who cares if MS buys them /s. People don't have to keep releasing these articles, the check has already cleared the FTC board so the acquisition will be finalized regardless
I'm glad MS bought them so they wouldn't be stuck under corrupt leadership of kotic forever. Will be interesting to see what that company can do going forward. Also be good to see Blizzard get a chance to get back to where they were before activision messed them up.
Unknown?
Member
People have hated Activision for decades now. They're up there with EA for most crappy company. Stripping them of the Spider-Man license was the best thing to happen.We get it guys, Activision Blizzard is now a failing company with sub par IPs so who cares if MS buys them /s
Next Tony Hawk should revoke his rights to them.
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