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Rumor: Activision Blizzard to Lay Off Hundreds Next Week - MMORPG.com News

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  • Skaar.AionSkaar.Aion Member UncommonPosts: 9

    SBFord said:





    SBFord said:


    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses. Couldn't that have better been spent to keep the folks in the trenches employed instead of lining already rich people's pockets?

    Oh wait....that's big business, isn't it? :/

    Important to keep in mind that those 15 Million aren't cash-money though.

    Bonuses like that are almost always stock/shares and are tied to certain criteria to entice the new officer to do a good job.



    It's still shitty though, that the people responsible will most likely come out of this unscathed...

    Instead of reducing management/officer salaries by 10% across the board and show responsibility that way - which would have saved a LOT of jobs - it's the lower level employees that will suffer the consequences brought by the management...


    I understand that but his base salary is in multi millions plus bonuses. It's disgusting.



    Yea, that's why I always feel that the board should just cut management / officer salaries, so that those actually responsible have to take the hit...not the low level employees, who just do what they are told to do by management...

    But that'll never happen sadly. Although it would be the right lesson...
    PalebaneGdemami
  • gervaise1gervaise1 Member EpicPosts: 6,320
    edited February 11
    NyteWytch said:
    SBFord said:
    People, this is ACTIVISION Blizzard. If there are layoffs and financial failure, it's both companies, not just one. After all, losing Bungie hurt Activision as did the relative failure of Destiny 2. 
    I still call bullshit on this from Activision. Back in Sept the articles were all patting D2 on the back for top grossing on consoles and 60% of D2 owners buying the expansion. Then later Activision states they were upset with D2 sales. Wat.  :/  Sounds like spin since the jettison of Bungie was probably already in the works by then.

    sources:
    https://www.pcgamesinsider.biz/news/67786/destiny-2s-forsaken-expansion-allegedly-tripled-the-games-player-count/

    https://www.dualshockers.com/destiny-2-spider-man-digital-sales-september-2018/


    Sad to see more people losing jobs and hopefully they find prosperous new positions. <3
    AB - and they are not alone - like to put a positive spin on things. One thing I liked about EA's recent investor discussion was that it was much more "grounded". 

    D2 was fine. Everything AB said was true. The game was a success. Bungee will have been happy! Activision though didn't make the game. They provided the money to get the game made and then sold the game. And for this they will have had a profit target in mind: maybe 10-15% for funding, + 30% for selling it (think Steam). And if they didn't get this return then - for them - it wasn't good.

    D2 good for Bungee, less so for AB.

    So on to D3. AB were down to provide money upfront to Bungee. And if - if - cash flow is an issue they may have wanted Bungee to take the risk of developing the game themselves. And Bungee are! When it came to AB still wanting their 30% cut or whatever Bungee said no way, if we (Bungee) are funding it we are going to get the big bucks. I'm guessing but its the sort of thing that happens - and makes sense here.
    Post edited by gervaise1 on
  • gervaise1gervaise1 Member EpicPosts: 6,320
    Blizzard should have remained an Indie studio
    They ceased being an indie studio decades ago - long before WoW. Perhaps: I wish Activision Blizzard was part of Vivendi?
  • azarhalazarhal Member RarePosts: 1,351
    Was Activision in the red? Nope, just a ­~13% drop year to year (that everyone had less or more) and their net incomes was up despite of that.

    This mean those layoff are just american incompetent management bullshit to magically reduce expense super fast so the shareholders believes they are competent. It's super ineffective long term because you'll ended rehiring as many people eventually and you lose lots of knowledge in the process which means the new hiring will cost you more.

    *clap, clap, clap*
    SolancerElendengelARSoulSin
  • blueturtle13blueturtle13 Member LegendaryPosts: 11,826
    gervaise1 said:
    Blizzard should have remained an Indie studio
    They ceased being an indie studio decades ago - long before WoW. Perhaps: I wish Activision Blizzard was part of Vivendi?
    Even before Diablo ;) 
    gervaise1

    거북이는 목을 내밀 때 안 움직입니다












  • gervaise1gervaise1 Member EpicPosts: 6,320
    Myria said:
    SBFord said:
    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses.

    Most of that was in future stock if certain targets were met, wasn't it? Even assuming said targets are met, I have my doubts the stock will quite so big a windfall, and if targets are met one could argue that, at least as far as Acti-Blizz is concerned, it's money well earned.

    The whole CFO mess makes for great headlines because to the average person it "feels" wrong, but I doubt that in the real world it's at all relevant to the current situation.

    Put another way, correlation, despite The Interent's general insistence to the contrary, does not equal causation and while Bad Optics may make for great headlines and lots of clicks, it's rarely nearly as explanatory as people so desperately want to believe.
    The question though: if the targets are met is that down to this one person or is it down to everyone in the company pulling together?

    Would the targets have been met if they had promoted the deputy finance guy and only offered them a package worth $5M say? I

    When are multi-million salaries - that are often paid regardless of how well a company is doing - to much? Should there be a link to the "average salaries" of the company employees? 
    MadFrenchieThupli
  • SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
    Dude still makes $1M a year + bonuses.

    Dennis Durkin, Activision Blizzard’s new chief financial officer, is getting a bonus worth $15 million for taking the job. The award consists of $11.3 million of stock and an additional $3.75 million in funds. That's in addition to a $900,000 salary and a $1.35 million target bonus.


    gervaise1MisterZebubinfomatz


    ¯\_(ツ)_/¯ 


  • zaberfangxzaberfangx Member UncommonPosts: 1,795

    Galadourn said:

    Are you kidding? Classic is their last chance to turn the game...



    Classic still long ways off. I don't think Classic to turn the game for Blizzard. Classic is doing old content over again, and people will find it fun until endless grind to gear up going turn to many people away.
  • blueturtle13blueturtle13 Member LegendaryPosts: 11,826
    The real problem that they have is lack of new IPs. The entire company is dependent on older franchises. They need fresh ideas. The new IPs they do have coming out need to hit big to really help them. Like Sekiro. Rehashing and rereleasing Spyro, Call of Duty and Crash is not going to do it. 
    Aeandergervaise1DMKanoScotThaharwingoodinfomatz

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  • ScorchienScorchien Member LegendaryPosts: 6,874
            Not Blinking , everything will be fine ..   check back in 8/19
    blueturtle13
  • blueturtle13blueturtle13 Member LegendaryPosts: 11,826
    Scorchien said:
            Not Blinking , everything will be fine ..   check back in 8/19
    Agreed, financially I am not worried for my stock. I consider this trimming the fat more than anything. It is an unfortunate series of events for those laid off and I can personally sympathize, yet it is in part to the developer bloat that many companies experience with success. Once things turn a bit the bloat is trimmed. There are a few things upcoming that will produce for them over the next few quarters. Plus rumor has it that Blizzard has a 'plan' for something different going into 2020.  
    Scorchien

    거북이는 목을 내밀 때 안 움직입니다












  • parrotpholkparrotpholk Member EpicPosts: 4,602
    This is a company who obviously is not used to this type of failure.  From unrealistic and undeserved bonus to the new CFO to all the media reactions to its various announcements the last few months.  Destiny 2 may have "underperformed" but it was still very profitable so losing Bungie hurt as well I am sure.

    Outside of the latest lamest yearly COD offering I am struggling to think of what ATVI has releasing this year that should give it some light at end of the tunnel.  With all the BR offerings I also do not see people getting hyped for the new COD either since they killed the campaign.

    With all the cost cutting I wonder if they will have a Blizzcon this year after last years disaster.  In theory this years Blizzcon should be packed with big announcements like D4 and the WOW expansion that will get things back on track but who knows.

    Hate it for those losing their jobs.
    Gdemami
  • gervaise1gervaise1 Member EpicPosts: 6,320
    The real problem that they have is lack of new IPs. The entire company is dependent on older franchises. They need fresh ideas. The new IPs they do have coming out need to hit big to really help them. Like Sekiro. Rehashing and rereleasing Spyro, Call of Duty and Crash is not going to do it. 
    Same problem with the King leg of the company: Candy Crush etc. A concern analysts had when AB bought King - had AB overpaid etc.
    blueturtle13
  • MisterZebubMisterZebub Member LegendaryPosts: 3,584
    SBFord said:
    Dude still makes $1M a year + bonuses.

    Dennis Durkin, Activision Blizzard’s new chief financial officer, is getting a bonus worth $15 million for taking the job. The award consists of $11.3 million of stock and an additional $3.75 million in funds. That's in addition to a $900,000 salary and a $1.35 million target bonus.


    Including his salary and bonuses, Morhaime was paid $12.3 million in 2017. Activision Blizzard CEO Robert Kotick's total pay for last year $28.7 million, while CFO Spencer Neumann took home $9.5 million. Chief Corporate Officer Dennis Durkin made $5.8 million, while Activision Publishing boss Collister Johnson earned $11.2 million, with King CEO Riccardo Zacconi taking home $14.8 million.

    "You have kept me at your beck and call for fifteen years. I shall never again do what you demand of me. By every rule of single combat, from this moment your life belongs to me. Is that not correct? Then I shall simply declare you dead. In all of your dealings with me, you'll do me the courtesy to conduct yourself as a dead man. I have submitted to your notions of honor long enough. You will now submit to mine."

  • ScorchienScorchien Member LegendaryPosts: 6,874
    Scorchien said:
            Not Blinking , everything will be fine ..   check back in 8/19
    Agreed, financially I am not worried for my stock. I consider this trimming the fat more than anything. It is an unfortunate series of events for those laid off and I can personally sympathize, yet it is in part to the developer bloat that many companies experience with success. Once things turn a bit the bloat is trimmed. There are a few things upcoming that will produce for them over the next few quarters. Plus rumor has it that Blizzard has a 'plan' for something different going into 2020.  
    Good points , and the entire industry is in flux , and we knew this was bound to happen at some point , as it became bloated .. It will settle back down into a good place in the near future
  • ElidienElidien Member RarePosts: 1,385
    Let's call it a correction. You are never on top forever and neither side of the company has had a major hit in the last 12 months at least, possibly longer. Mediocre sales on some major titles, the lackluster announcements, lack of a D4 announcement and combine that with BfA tanking like it did, it cannot be good. Investors and boards are going to be running scared. And let's not forget investors want to see Blizzard's battle royale entry as well. :)
  • gervaise1gervaise1 Member EpicPosts: 6,320
    Scorchien said:
            Not Blinking , everything will be fine ..   check back in 8/19
    Oh I am sure things will be "fine". Fine enough for the board to be paid their bonuses anyway. Now if only shareholders would use their votes.
  • necrolocknecrolock Member UncommonPosts: 40

    SBFord said:

    It's surprising and not surprising at the same time. All game companies are struggling and ATVI's missteps at the end of the year are indicative of this happening, long predicted by @DMKano.


    The Irish customer service workers who took the year's pay and voluntarily left a few months ago are darned lucky.


    I'm so sorry for those who'll lose their jobs. Let's see what Tuesday brings.



    Luck of the irish. ;)
  • DMKanoDMKano Member LegendaryPosts: 21,215


    Blizzard should have remained an Indie studio



    As far as creative innovation and agility - 100% agree.

    The problem is financial success drives growth and as companies get bigger this often equates to bloat. Inevitably this stifles creativity and innovation - and for a game studios that thrive on open creativity this is terrible.
    TyranusPrimeScotty787wingoodinfomatz
  • ElidienElidien Member RarePosts: 1,385
    DMKano said:


    Blizzard should have remained an Indie studio



    As far as creative innovation and agility - 100% agree.

    The problem is financial success drives growth and as companies get bigger this often equates to bloat. Inevitably this stifles creativity and innovation - and for a game studios that thrive on open creativity this is terrible.

  • ElidienElidien Member RarePosts: 1,385
    Okay not sure what happened there but I meant to ask @DMKano....

    IS a lot of this because of the success of Fortnite? In all seriousness, I know we joke about it and BR games but its almost a half the market says you need to have a BR game and the over half is like "wait and see" for Fortnite's success to decline.

    IS the market running scared or is that just part of it? I have not seen this much uncertainty since a couple years after WOW launched and everyone seemed to be "What to do now?".
  • DMKanoDMKano Member LegendaryPosts: 21,215
    Elidien said:
    Okay not sure what happened there but I meant to ask @DMKano....

    IS a lot of this because of the success of Fortnite? In all seriousness, I know we joke about it and BR games but its almost a half the market says you need to have a BR game and the over half is like "wait and see" for Fortnite's success to decline.

    IS the market running scared or is that just part of it? I have not seen this much uncertainty since a couple years after WOW launched and everyone seemed to be "What to do now?".

    It is a direct result of Fortnites massive success.

    Read this article ok Bloomberg - it explains it decently 

    https://www.bloomberg.com/news/articles/2019-02-07/video-game-titans-suffer-deepening-slump-as-flops-pile-up
    Elidienwingoodinfomatz
  • RegnorRegnor Member UncommonPosts: 108
    Looks to me like just another big company getting milked by investors turned management, at the expense of the product side of the house. It can happen at the biggest financial institutions in the world, and it can certainly happen to a "game company". The bigger the company, the bigger the fall. It's a natural cycle driven by the mighty forces of greed and the ease of corporate raiding.

    VisiCorp owned the world when they published VisiCalc, which fell to Lotus, who owned the world when they published Lotus 1-2-3, which fell to Microsoft, who owned the world when they published Windows-based MS Excel, and so on. 
    SovrathNyctelios

    Men do not stop playing because they grow old. They grow old because they stop playing. -- Oliver Wendell Holmes

  • RemyVorenderRemyVorender Member RarePosts: 3,822
    F2P is the root cause of the gaming industry's current struggle. That bubble was bound to burst eventually. 
    Palebane

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  • ScotScot Member LegendaryPosts: 11,786
    SBFord said:
    I think what makes me the saddest in all this is that they offered the new CFO up to $15 MILLION in bonuses. Couldn't that have better been spent to keep the folks in the trenches employed instead of lining already rich people's pockets?

    Oh wait....that's big business, isn't it? :/
    It is modern big business, up to the nineties in the UK anyway such remuneration had to be agreed by shareholders. Just like politicians, once company directors could set their own pay enough is never enough. 

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