Games News

Blizzard's stock value drops following Diablo Immortal fiasco

Blizzard
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Blizzard Entertainment

Blizzard's daily dose of bad news comes from the New York Stock Exchange where Acitivision Blizzard Inc. stock value has crashed by almost seven per cent following the last week reveal of Diablo Immortal for mobile on Blizzcon 2018.

Diablo Immortal has been nothing but a headache for Blizzard since its reveal at Blizzcon 2018 last week. The list of problems just got bigger as Activision Blizzard Inc. shares were hammered by almost seven per cent after the first day of trading closed on the New York Stock Exchange. The shares currently got to $64.43 which is down from the previous day's close at $68.99 and are on track for its lowest close since January 2018.

However, some analysts are still confident that Diablo Immortal should be a success for Blizzard despite the stock crash. They suggest Diablo Immortal could attract more than 200 million monthly active users, generate annual revenue of up to $300 million and that it should further expand the franchise's audience. 

Analyst Timothy O'Shea claims mobile games like Diablo Immortal are likely to attract larger and harder core mobile audiences in Asia, with Diablo franchise being already popular all over the world.

The general feeling coming from Blizzcon was a negative one, which explains the stock drop and investors snag. Research firm Cowen and Company mentioned that "Blizzard could have avoided the drop by showing players a glimpse of the next core Diablo title," adding that "Blizzard aren't in touch with their players as they maybe should be."

Mark Kern, a former employee of Blizzard has said something similar in his response to Blizzcon controversy and suggested that the company should apologize to fans by releasing a Diablo 4 trailer.

Blizzardpicture showing a demon with diablo immortal titleDiablo Immortal

For comparison purposes, EA's stock prices dropped by 10 per cent back in August when the publisher announced Battlefield V delays. The game has been followed by multiple controversies resulting in low pre-order numbers, so it will be interesting to see if Blizzard's Diablo Immortal fiasco brings a similar problems with sales or user numbers since we are yet see the game's exact business model.

The partnership with NetEase, a company known for free-to-play games could throw some light on that mystery though.