Activision-Blizzard said they have been investing in their key franchises, and those investments would pay off in the second half of the year, they didn’t.
Activision-Blizzard reported a continued drop in numbers and performance in its third fiscal quarter. This could come as a surprise only if you somehow didn’t notice that their actions managed to piss off everyone.
The plan was to during the second quarter invest in existing franchises and then expect those investments to start paying off in the third quarter, but the numbers show that nothing is paying off for now.
The net revenues for Activision Blizzard dropped an incredible 15% to $1.28 billion and net bookings were down 27% to 1.21 billion, for the quarter that ended September 30. It’s not all bad news for investors though, a profit of $0.26 was made per share, although, that is 24% less than last year in the same period.
There are two things that can explain the numbers. First being that things just didn’t go exactly as planned and that the return on investments will simply happen in the last quarter and the beginning of the next year.
The other option is that besides sponsors, they also managed to turn away a huge number of fans after the incident involving the pro Hearthstone player from Hong Kong. In case it is the fan reaction, it will be interesting to see what will happen with the many games announced at BlizzCon.
How do you feel about the company? Are you still boycotting them or did they win you over with Diablo IV?