They lost Destiny, which was roughly 10% of the revenue, Destiny would still be included in the earningscall meaning that the sales of Destiny and the publishingrights are a greater part of the record revenue. As the record revenue is a one-off that will fall by more than 10% in the upcoming years, reducing the biggest cost driver, personnel, is a given. During the Q&A part of the call they did confirm that roughly 8% would be let go and that majority would come from SG&A. It's always sad when things like this happen but it is inevitable. Companies need to change up their organisational structure from time to time to get back to efficient structures. We can all agree that something has had to be done for 6 months, internally it has probably been brewing even longer. Lack of communication is just a symptom and not the sickness.These changes are putting Activision Blizzard in a better position to release games and puts focus back into the game, it is no secret that Blizzard has had multiple binned projects which would lead other, less financially strong companies, into bankruptcy. This is a rough time but I'm sure Activision Blizzard will come out stronger in the long run, hopefully with some of the laid off people back at other positions.
Blizzard profit only for the very top of ActiBlizz.For shame.
Is Diablo immortal not coming out this year?
Come on Riot, give me that LoL MMO, I know it is coming!
Perculia, here's a few words from a corporate wageslave, who ran the internal control dept that built the case on who gets "downsized".Results for 2018 were Blizzard "riding the wave" of Legion success, which literally sold BfA... and that was further reinforced by the 6-mth-for-ship-mount promotion, which prevented people from leaving when they realized just how bad BfA is.To be honest, I don't understand just how after Legion, which was all kinds of innovative and awesome, and everything I touched played in a pleasant, fun way, we get this complete nightmare of an expac were everything feels like wading neck-deep through a bog. The only team that completely outdid itself is the art team. It just adds insult to injury, when the zones look the best they ever did, everything is just stunningly pretty, but plays so incredibly bad.It's mind-boggling. Particularly that some concepts, like islands, certainly did hold a promise, but were implemented in a really bad way.Back to finances... The revenue from that promo and from expac sales are not gonna be there in 2019... and they know it. So now, put yourself in the CEO chair. You have to make cuts - and any cuts to dev team means you're literally killing your business, any chance of making a comeback included. Yet, something HAS to go. What do you choose? That's where we are.I can also tell you what's coming, because everyone and their mother is doing it like that, instead of trying to inhouse plushies and similar paraphernalia. It's called licensing... if there's enough demand for pepe plushies, someone's bound to get a license (cool, cold cash straight to the bottom line for Blizz) and make them. If there's not... you're in for some DIY if you want one.
@Thoorin, your whole reply-post made sense up until the end. I do agree with riding on the tail of Legion success. But...
The whole American Corporate Mentality is ... well .... mental.They go for continuous growth and if there is no growth then they are failing and damn the facts - the only thing in nature that grows continuously is cancer.You don't start chopping away at the foundations of your income because your stocks are going down.You cut those executive bonuses that can keep operations going for YEARS while you retool and give your clients something the other guys don't or in this case, won't.Executives don't actually make anything and if it's their bonehead decisions that are messing with future income then punish them, not the little people that actually keep the company going.Unfortunately everything is short term and forward thinking goes as far as the next quarter and maybe a bit further. Otherwise they don't care because they get their millions no matter how much they screw up the operation as long as the stock goes up next quarter. Then they run away to another company to do the same thing all over again or in Activions case, eat another established game company and bleed it dry.
If I could make a million dollars and find a bank that would give me 2% annual interest I could live my entire life without working another day. I have zero sympathy for any C-E-Anything and their self-preservation woes.