Activision/Blizzard reports reduced revenues and MAU

[Deleted member 13]

Yea, I was just taking a look at this on seekingalpha.

Oh well, It's obvious we've had a rough year as far as gaming releases go. Development has slowed a lot. Many games being pushed back.

 

[Swift_Star]

Called it.

 

[Remember_Spinal]

Btw, I assume you wrote “MAU halved” in the title thinking it was down 47% YoY.

But it wasn’t. It’s down 47 million, not percent, which is 12% YoY. Not halved, or even close.

Nope I was literally copying the Twitter post in the op. MAU was not halved

 

[kyliethicc]

Nope I was literally copying the Twitter post in the op. MAU was not halved

Read your title. You literally wrote “halved”

 

[Remember_Spinal]

Read your title. You literally wrote “halved”

Yes we agree

 

[Yurinka]

Wow, revenue down 46% and profit down 65% is a big hit.

Of course I saw it.. calling profit being down 37% a "solid year" is pretty ridiculous.

They are in the middle of selling loads of expensive hardware that nobody like ABK is selling, it makes the revenue go up but unless game sales increase or stay the same profit goes down.. and game sales went down.. a LOT year over year. Like 25% less games...

Profit down was for a quarter, not a year. Revenue was pretty much flat. The profit decrease was due to lack of major releases this quarter compared to the previous one in both 1st and 3rd party and cost of acquisitions.

Sony will have many major 1st and 3rd party releases during 2022, but just not this quarter. When looking at the 2022, it will be great specially adding Bungie acquisition and the new PS+. The Bungie acquisition will hurt the profit of a handful of quarters, but in 5-10 years they'll recoup that investment and start profiting from it.

But their business does include hardware... they are a platform holder.

Xbox was down a lot on hardware too, so it matters in that context. IMO

Not being completely dependent on software is good IMO.

Yes. But when including hardware, since a few months before the launch of this gen they have been hit hard by the chips thing so if hardware goes more or less up or down depends on chips availability.

 

[kyliethicc]

Yes we agree

Do you know what halved means?

And nowhere in the tweets you posted does he say MAU were halved.

You incorrectly wrote that.

It’s their revenue that’s down 46%. MAU was 12%.

 

[Remember_Spinal]

Do you know what halved means?

I’ve already said i incorrectly wrote it as MAU halved

 

[Dr Bass]

Yeah I think you don't quite get how the wording is a bit of an insult as saying someone "looks smart" makes it seem like they only appear to be smart.

Anyways I believe that you didn't mean to insult.

I just don't get why you are so laser focused on revenue... having to downgrade your yearly profit forecast a significant amount is not a good thing, it's about the worst thing that can happen to a business.

edit: I also don't like being told I'm spinning a "narrative".. that implies I am not being genuine.. I am.. I genuinely believe your profit going down 37% is not a "solid quarter" for any business YoY.

No way. They are still profitable. Reinvesting profits is hardly “the worst thing” that can happen to a business. Sony is in a great position right now.

Actually losing money is far worse. Which plenty of companies do.

 

[Gediminas]

Yeah I think you don't quite get how the wording is a bit of an insult as saying someone "looks smart" makes it seem like they only appear to be smart.

Anyways I believe that you didn't mean to insult.

I just don't get why you are so laser focused on revenue... having to downgrade your yearly profit forecast a significant amount is not a good thing, it's about the worst thing that can happen to a business.

edit: I also don't like being told I'm spinning a "narrative".. that implies I am not being genuine.. I am.. I genuinely believe your profit going down 37% is not a "solid quarter" for any business YoY.

Can you denied that sony didn't use those profits into Bungie deal? So sony invested back to their expansion is not solid business?
If I got salary 10000, monthly cost was 5000 and I am left with 5000 'profit' and invested 2000 into some business which generates 100 money. So while i went down 2000 in profits that month, I still keep my worth at 5000 and every month from investment I get 100 profits more. So I get richer. Solid investment.

So yeah, spinning negative narrative like those Twitter war bots which you don't like.

 

[BloodMod]

The title was not entirely accurate, so it was edited. Carry on, chaps.

 

[Darth Vader]

Of course I saw it.. calling profit being down 37% a "solid year" is pretty ridiculous.

I'm not sure if you read the actual report or are just throwing numbers, but half of the profit delta is actually not due to loss of revenue, it's due to increased costs for game development. I dropped a post on this.

Sony Q1 FY2022 Results (2.4m PS5,

They're at 41m and been growing since then. We'll see what happens once they reach 50m. U mean 25 million

icon-era.com

So in reality, when you exclude game development, they are down on their profit less than 20%, and still had one of their best months EVER. Overall the results are not bad at all.

 

[Shmunter]

MS will be joining Sony trying to nix the deal. Likely overpaid harder than Elon nearly for Twitter

Call of Duty fans switch off in their millions
Activision users dip below 100m for first time in several years.

Call of Duty fans switch off in their millions

Call of Duty fans are switching off from the franchise, Activision's latest user figures suggest.

www.eurogamer.net

 

[Hezekiah]

$70bn on Activision which was well above market value even at the start of the year.

I wonder what they would pay now.

Luckily for them, MS has a lot of money to waste. But I wonder what shareholders think of the value of the deal.

 

[Bo_Hazem]

 

[Bodycount611]

MS will be joining Sony trying to nix the deal. Likely overpaid harder than Elon nearly for Twitter

Call of Duty fans switch off in their millions
Activision users dip below 100m for first time in several years.

Call of Duty fans switch off in their millions

Call of Duty fans are switching off from the franchise, Activision's latest user figures suggest.

www.eurogamer.net

this is great news, and i'm in that statistic. I don't plan to come back for MW2 either, so the numbers may not rebound as much as some are hoping.

what happened in this timeframe

-Activision outed as a toxic company that harbors rapists
-Call of duty Vanguard was absolutely a must skip, atrocious looking (and received) title
-The past 2 COD's now in fact have been must-skip, broken, garbage games
-MS acquires Activision and starts fear mongering PS users with its in-the-air exclusivity status
-Pandemic boost ends
-Warzone is officially passe, long-in-the-tooth

A lot to consider. But COD's future isn't looking very bright IMO.

Dead franchise walking.

 

[Vertigo]

Realistically Microsoft could’ve waited a few more years for Activision to implode further.

I sorta expect this downward trend for them to continue until the deal is final and MS guts them to pieces (I find this necessary btw)

 

[IntentionalPun]

I'm not sure if you read the actual report or are just throwing numbers, but half of the profit delta is actually not due to loss of revenue, it's due to increased costs for game development. I dropped a post on this.

Yes it was posted like 50 times, along with me posting they sold 25% less games YoY 50 times. 35 billion yen less games.

That's.. concerning.. so that's why Sony showed so much.. concern.. and lowered their overall outlook. If Playstation had a stock ticker their price would have gone down pretty handily.

I'm well aware there were other factors for why their profit went down... increasing costs at existing studios isn't some amazing thing either, so I don't know why people keep acting like it's all "investing." Sony didn't say that, they are talking about inflation and increased labor costs. Outside of their hands? Yes.. but again, this all lowered their profit and future outlook.

I've also said ignoring the stock market/investing stuff Playstation is still a healthy business doing well. But we are talking financial reports, and all the finance world cares about is growth and for a quarterly report you hit or beat your outlook. You set an outlook, wall street reacts based on their confidence you'll hit it.. you miss that outlook by 37%... again, not a solid quarter.

I find it really bizarre there's like zero people here who seem to be able to comprehend selling 25% less games YoY unexpectedly isn't a good thing for a company who sells games.

I'm not sure you actually read the report or if you are just ignoring numbers

 

[Yossarian]

Call of Duty franchise loses over 50 million players in a year

Call of Duty has had record player count losses, losing over 50 million since last year. The Activision Blizzard franchise is set to pause development on a 2023 CoD after the release of Modern Warfare II and Warzone 2.

www.truetrophies.com

 

[ethomaz]

Realistically Microsoft could’ve waited a few more years for Activision to implode further.

I sorta expect this downward trend for them to continue until the deal is final and MS guts them to pieces (I find this necessary btw)

Microsoft pretty much used the situation to buy Activision… if they were in good shape MS should have failed or not even tried to buy them.

The situation created the opportunity to MS.