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Activision Blizzard misses on earnings, sees user decline in Q4

Feb. 03, 2022 4:30 PM ETActivision Blizzard, Inc. (ATVI), MSFTBy: Jason Aycock, SA News Editor31 Comments

Gwyneth Paltrow And Tracy Anderson At Licensing Expo 2013

David Becker/Getty Images Entertainment

Activision Blizzard (NASDAQ:ATVI) is just making penny moves after hours following its fourth-quarter earnings report - a print whose importance has faded a bit in the context of Microsoft's (NASDAQ:MSFT) huge deal to

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Comments (31)

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omdguy profile picture
I didn't read their ER, but the user numbers being lower would make sense since many people take the latter part of December off and are gaming (if they are gamers of course). I know I was online gaming much less I'm Jan than I was in December....
Et20 profile picture
Lower subscriber figures and yet on other articles we have discussions over anti trust.
With all the sh!t that was going on at ATVI, and it had been
like this for quite a while, i think that the creativity and enthousiasm
levels of the employees was next to nonexistent .

But with a good "cleanup" and the backing and guidance of MSFT,
things will go from bad to great , it's just a question of time.
r Negoro profile picture
I tried diablo 2 res, it had a lot of issues bro.
1 glaring issue was the lack of inventory space. Which is totally noob of such a huge company.
omdguy profile picture
@r Negoro

Sorry, can you elaborate on your poat? Not sure what 'laxk of inventory space' is referring to..
Shouldn’t this be down 25% just Iike Facebook? 🤠
auto44 profile picture
@thatswhatshesaid Not with MSFT offer on the table. When the bed broke.Haha.
riddix profile picture
Looking forward to Diablo4 and Overwatch 2!
careful investor 1 profile picture
Last year everyone was home hiding. It's unfair to compare earnings.
You have to understand Microsoft is also paying for the IP. Imagine Warcraft tv series, starcraft tv series, and diablo movies etc. This is a solid deal and I don't think MSFT is holding the bag. If you're an ATVI investor you get 3 Billion for a breakup fee. Doesn't sound like a bad deal considering how much ATVI can do with 3 Billion cash.
ContyC profile picture
@ChiefKings The TV series inspired from Warcraft or Starcraft could be awesome. They could slso resurrect the Warcraft movie with more sequels.

However, I doubt any of this will happen. Blizzard has been neglected at Activision, and I don’t think Microsoft will care more about it.
Orangejulius profile picture
Definitely weak results with Vanguard being viewed negatively in general. Both EA's Battlefield 2042 and ATVI's CoD Vanguard missed the mark last year.

Besides Diablo 2 Res, there hasn't been a big Blizzard release.

Obviously all that matters now is the acquisition goes through. If not, the 3B breakoff fee makes all this worth it. Either way, Kotick needs to go.
Not too surprising. Some of their franchises are very stagnant at this point.
1GMD profile picture
03 Feb. 2022
The deal will get done.
RonAFGreve profile picture
Since the shares are now pegged to 95 for a bit over a year it doesn't matter (my long term options were bust anyway :-( ).
ya too much competition lol....games are the big money maker but there are so many apps, many competition.
polymath ryan profile picture
call if duty has been plagued with bugs and cheaters. they need to resolve these issues to bring those gamers back and make everyone happy.
@polymath ryan Your right, its ashame COD was a great game
early on, but now with the cheaters and the bugs , i simply stopped
playing and uninstalled from my PC, im playing Destiny 2 and having
a blast !!!
This is get woke go broke mixed with supply chain. This earnings is a statement on Call of Duty Vanguard. It did not drum up the same excitement as prior releases. In addition, supply chain has hindered console sales which has probably cut into new game buyers as well.
MDavid profile picture
I think most analysts were forecasting some weakness, but none this bad that I can tell.
I know there’s a $3B breakup fee if MSFT bails on the buyout, but does anyone know if they still get the $3B if the FTC shuts the deal down?
@MDavid a weak earnings statement would actually help the deal go through. if a business is softening that would undermine the idea its a monopoly of any kind.
MDavid profile picture
@marcoyolo I agree. I’m just trying to understand the worst-case scenario, which will help me determine my position size. ATVI getting the $3B if the FTC destroys the deal is a nicer outcome than them getting nothing.
@MDavid Is a $3B question that I can only speculate... Who else would be entitled to it besides ATVI? Conversely, Attorney's are Extremely Competent and they probably covered this completely to save the Money if things outside of either party's Control occurs.
GR Value profile picture
Their games are so-so, and there's too much competition out there. MSFT will probably be able to utilize and improve them, but still... would probably be bad for consumers to let MSFT acquire anything else at this point. They've been a growing monopoly since the 80s. There has to be a balance between our core interest in the US (exports etc) and also monopolistic behavior.
RonAFGreve profile picture
@GR Value I don't know, there are so many game studios, if $MSFT raises prices the smaller ones have a higher chance of succeeding and if they lower them it is better for their customers. Either way the consumer wins, capitalism just works.
Scotts Miracle-Gro Sucks profile picture
time to add while we wait
Scotts Miracle-Gro Sucks profile picture
cash money!
Nice Balance Sheet.
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