Activision Blizzard is a fragile company
Activision Blizzard, Inc. is the American holding company for Activision and Blizzard Entertainment. In 2009 Activision Blizzard was the world's second-largest gaming company by revenue after Nintendo Activision Blizzard is known as one of the leading video game publisher and successful video game franchises of all time. The company has published top name games which include Call of Duty Series, Skylanders, Halo, and World of War craft etc. It has been a decade since Activision Blizzard and its stocks has turned into a profitable company as the operating margin of the company was 30% in 2013 which is all because of the successful games the company has published over the years. However in recent times, the company took risks over the years which might result costly against them.
One of the most popular and successful games of the company, World of War craft is losing its subscribers in recent times. World of war craft is the company's decade old online game which is still the most popular role playing game on the basis of subscription in its genre despite of losing subscribers. As the game is about 10 years old, it is a matter of time that some other game comes along in the near future and takes it place such as The Elder Scrolls Online. The revenues have also decreased which tell that there will come a time when gamers will have over played this game.
Not only this but the huge risk and gamble prior to the release of the most awaited game of this year, Destiny, might turn out to be costly for the company as well. However, the reports are strong that this game will become the best game of this year as well as one of the best games every played, but there is a possibility that it might not live up to the expectations as well. The company has invested heavily, $500 million, on this game which is said to be the next Halo plus the next Call of Duty. The company officials say "Destiny is by far the most expensive video game ever made, dwarfing the $260 million spent to develop and market Grand Theft Auto V. Of course, if Destiny sells tens of millions of copies and spawns successful sequels, the $500 million price tag will be well worth it."
Hence in a nutshell, to reach the top and sustain its position, the company took some risks that might prove to be costly for them but it has planned to go all in.
One of the most popular and successful games of the company, World of War craft is losing its subscribers in recent times. World of war craft is the company's decade old online game which is still the most popular role playing game on the basis of subscription in its genre despite of losing subscribers. As the game is about 10 years old, it is a matter of time that some other game comes along in the near future and takes it place such as The Elder Scrolls Online. The revenues have also decreased which tell that there will come a time when gamers will have over played this game.
Not only this but the huge risk and gamble prior to the release of the most awaited game of this year, Destiny, might turn out to be costly for the company as well. However, the reports are strong that this game will become the best game of this year as well as one of the best games every played, but there is a possibility that it might not live up to the expectations as well. The company has invested heavily, $500 million, on this game which is said to be the next Halo plus the next Call of Duty. The company officials say "Destiny is by far the most expensive video game ever made, dwarfing the $260 million spent to develop and market Grand Theft Auto V. Of course, if Destiny sells tens of millions of copies and spawns successful sequels, the $500 million price tag will be well worth it."
Hence in a nutshell, to reach the top and sustain its position, the company took some risks that might prove to be costly for them but it has planned to go all in.
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