Tuesday , June 15 2021

Activision Blizzard will report earnings amid the news of the dismissals, a drop in shares



<p class = "canvas-atom canvas-text Mb (1.0e) Mb (0) – sm Mt (0.8em) – content" Activision BlizzardATVI), the game publisher behind game franchises such as Call of Duty and Overwatch will report fourth quarter earnings on Tuesday after markets close. The profit of this quarter will be a sign of how the company resists the landscape of video games that is being disturbed by changes in the traditional business model and the success of free games like Fortnite. Activision Blizzard (ATVI), the game publisher of game franchises such as Call of Duty and Overwatch, will report fourth quarter earnings on Tuesday after the markets close. the company is interrupting the video game landscape that is being disturbed by changes in the traditional business model and the success of free games such as Fortnite.

Analysts expect Activision Blizzard to report adjusted earnings per share of $ 1.28 – up 37% from the same period of the previous year – with $ 3.04 billion in revenue, backed by solid digital game sales such as Call of Duty: Black Ops 4. higher World of Warcraft subscription revenue and in-game purchases from some of his casual games such as Candy Crush Friends Saga. Indeed, investors will be looking for whether a company based in Santa Monica, California, has posted strong digital revenue. and rising earnings margins after months of decline in stocks.

Activision Blizzard shares fell nearly 50 percent since early October.

<p class = "canvas-atom canvas-text Mb (1.0m) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Bloomberg & nbsp;reported at the end of last week& nbsp; the company plans to fire hundreds of employees for flat or declining sales growth for some games, including Overwatch and Hearthstone. on Monday, although it is unclear how widespread the redundancies are at that time. Bloomberg announced late last week that the company plans to cut hundreds of employees due to flat or declining sales growth for some games Two sources familiar with the matter tell Yahoo Finance that Activision Blizzard has begun staff cuts at headquarters of Santa Monica on Monday, although it is unclear how widespread the redundancies are at the moment.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " including the executive director of Activision Publishing Eric Hirschberg, Blizzard president and co-founder Mike Morhaime, and Blizzard Finance Director Amrita Ahuia who joined Square (SQIn January of this year as Chief Financial Officer. "The company has also seen several executives leave during the past year, including Activision Publishing Executive Director Eric Hirschberg, Blizzard President and co-founder Mike Morhaime, and Blizzard Chief Financial Officer Amrita Ahuia who joined to Square (SQ) in January as CFO.

<h2 class = "canvas-atom canvas-text Mb (1.0e) Mb (0) – sm Mt (0.8em)Maintain low revenue expectations"data-reactid =" 27 ">Maintain low revenue expectations

Activision Blizzard interrupted the 10-year partnership with the Bungie studio after disappointing sales of Destiny 2: Forsaken last September – a move that could raise up to $ 400 million in Activision Blizzard's annual earnings, says Piper Jaffray analyst Michael Olson.

"We are looking at the potential savings in operating costs as a long-term positive," Colin Sebastian, Senior Research Analyst at Robert W. Baird & Co.

Activision Blizzard's problems can be related to the larger gaming landscape. According to the London research team, Pelham Smithers, video game revenues may drop 1 percent to $ 136.5 billion this year, the first drop in the industry since 1995, due to transforming titles such as Fortnite, a relative lack of large console hits and China's tougher approach to gaming approval.

Epic Games' Fortnite is a thorn in the country of Activision Blizzard. Since debuting the free multiplayer game play in 2017, "Fortnite" is almost transformed into gaming: it is easy to learn and learn, but on a very wide range of devices from the computer, Xbox One and PlayStation 4 to the Nintendo Switch and iPhone – a relatively rare phenomenon in gaming. (Players can buy locked items or features in the game, including weapons and clothing.)

This is in sharp contrast to the Activision Blizzard model, which, except for some more casual games like Candy Crush Saga, asks players to pocket up to $ 60 to buy a game in advance, and also to pay for additional content later. As a result, Activision Blizzard reported that its audience's game volume has decreased from 352 million in the second quarter of last year to 345 million in the third quarter, marking the fourth consecutive quarter of consumer downturns.

Investors will be looking for their management on Tuesday afternoon for their plans to revive this basic audience and increase their engagement with consumers.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em)Note: The author has previously worked for Activision Blizzard."data-reactid =" 34 ">Note: The author has previously worked for Activision Blizzard.

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