Games News

Hard times at Activision Blizzard, shares stoop to two-year low

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Blizzard Entertainment

Activision Blizzard have been struggling lately, what with the company offering severance packages and losing two CFOs in a single week, and the stock market agrees wholeheartedly, showing that these issues are just the tip of the iceberg.

As things stand, Activision Blizzard stock dropped by 7.3 per cent yesterday, 11 February 2019, ending the day at $40.11 per share, which is the company's lowest result since 03 February 2017.

Note, however, that Activision Blizzard are barely alone in this, as the stock market hasn't been overly kind to many other major players these past few months. In fact, Sony, Take-Two and Nintendo have all seen their stock drop in the wake of their respective financial reports.

On the other hand, Activision Blizzard are yet to deliver theirs, which means that their drop is likely to end up more severe than any of the three. After all, neither company's report really seemed to justify 13-14 per cent stock drops, so it's hard to be optimistic about Activision Blizzard's chances.

Apparently, many think that these drops are due to Fortnite: Battle Royale, whose stellar profits are thought to stifle the competition through sheer force. Epic Games has been raking in ludicrous amounts of money, so it's almost instinctive to point the blame their way.

Unfortunately, these sentiments do not seem to take into account games like Red Dead Redemption 2, which broke an all-time record for entertainment products by earning Take-Two $725m in the opening weekend. Doesn't seem like Fortnite had anything to say about that, does it?

From a purely gaming standpoint, confidence in Activision Blizzard is quite likely the lowest it's been in a while, with most news either focusing on severance packages they offer their employees, CFOs leaving or Bungie's departure, for which they're getting sued by the way.

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We will soon know more, as Activision Blizzard are set to deliver their financial reports, but it's really been a while since we've heard anything positive from the company, so we're not overly optimistic. And we're not sure the fact that we all have phones can help.