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Activision-Blizzard Beats Q4 2017 Estimates as Part of an Overall Banner Year - MMORPG.com News

SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126
edited February 2018 in News & Features Discussion

imageActivision-Blizzard Beats Q4 2017 Estimates as Part of an Overall Banner Year - MMORPG.com News

Activision-Blizzard has released its Q4 2017 earnings report that shows the company beat its own projected earnings. ATVI was projected to earn $1.7 billion in Q4 but came in just over $2 billion. Year over year, the company went from $6.6 billion in 2016 to $7.0 billion in 2017.

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Comments

  • DauzqulDauzqul Member RarePosts: 1,980
    edited February 2018
    I can't wait to read what all you pro-economist posters have to say!
  • TorvalTorval Member LegendaryPosts: 19,934
    Activision and Bungie's Destiny 2 was the second-highest-grossing console game in North America for the year1, had the largest PC launch in Activision history based on units, and had a higher attach rate on its first expansion than Destiny 1.

    Hahaha, this is total gold.

    I didn't realize CoD was the top franchise for so many years running and that it set a Sony record for current gen consoles. I know my son loves it and thinks it's one of the best CoD releases ever.
    Fedora - A modern, free, and open source Operating System. https://getfedora.org/

    traveller, interloper, anomaly, iteration


  • ScorchienScorchien Member LegendaryPosts: 7,311
    as a Blizzard(ATVI) investor for over 12 years, i am pleased again :)
    SBFordBillMurphymgilbrtsn
  • AlbatroesAlbatroes Member LegendaryPosts: 7,153
    They can partly thank EA for taking most of heat even though Activision was doing the same thing. Its just EA was defending what they were doing which drew more attention.
    DauzqulkillerqueerAlomar
  • josko9josko9 Member RarePosts: 577
    edited February 2018
    So basically income is down by 100mil compared to 2016, and while revenue is up, so are their liabilities too, going up to a whooping 9,3 billion. All in all, I'd say they performed a little worse than in 2016, even though their top guns (Destiny and Call of Duty) definitively showed up. They'll be probably a little bit more worried in 2018.

    What I'm wondering the most is, why are they bragging about King? It's revenue was at 2,3 billion in 2014 (before Activision Blizzard bought it for 6 billion), and in 2016 it was already down to 1,5 billion. Not to mention 290mil players in a quarter is the worst it has ever been (down from 550mil in 2014). King is in a serious decline, and at this rate Activision Blizzard will need 15yrs to make a return on their 6bil investment off King. One of the worst investment I've ever seen. Next time they should really turn to Tencent for an advice.

    As for Blizzard, I'm surprised they only have 40mil of players across all games, especially if most of them are F2P Hearthstone players. Seems like WoW's numbers are very low.

    If Activision keeps this up, I wonder how long till they completely overtake Blizzard. It's clear to me they are the ones making the majority of the money between the two, even if the new CoD was nothing special either. 
    Post edited by josko9 on
    metareal
  • OldKingLogOldKingLog Member UncommonPosts: 46
    Newsflash! Activison-Blizzard makes avalanches of money! Some people still inexplicably surprised!
    cjmarshScottJeslis
  • cjmarshcjmarsh Member UncommonPosts: 299
    I am never not impressed when I see Blizzard taking their amazing success and turning it into even more success.
  • gervaise1gervaise1 Member EpicPosts: 6,919
    edited February 2018

    cjmarsh said:

    I am never not impressed when I see Blizzard taking their amazing success and turning it into even more success.



    No evidence 2 years on that buying King was a success.

    2 of the top 10 games ..... when they bought king it was 3 of the 10.
    Average player engagement & revenue up - tends to happen when more casual players leave and only the more hardcore remain. And numbers are still declining.

    Maybe it will all work out. One can only speculate what heights AB would be scaling if they hadn't taken on all that debt to buy King.

    Edit: Just in case anyone reads the comment "King returns to growth". The metric AB won't want to you to check is Operating Margin. Whilst revenue in 2017 Q4 did increase - to $162M compared to $156M in 2016 Q4 - margin went from 36% to 31%. So they sold more but made less (gross) profit - $6M less.
    Post edited by gervaise1 on
  • CryolitycalCryolitycal Member UncommonPosts: 205
    Just underlines how big the rift between users and investors/corporations. They can afford to present Destiny 2 as a huge success, when the game is pretty much deceased at this point after it was the laughing matter of the whole gaming Internetz for months.
    But hey they manage to sell a lot of it! Not that hard I guess with all that hype, who cares about the game itself, they're probably already working on Destiny 3.
    Alomar
  • josko9josko9 Member RarePosts: 577
    Just underlines how big the rift between users and investors/corporations. They can afford to present Destiny 2 as a huge success, when the game is pretty much deceased at this point after it was the laughing matter of the whole gaming Internetz for months.
    But hey they manage to sell a lot of it! Not that hard I guess with all that hype, who cares about the game itself, they're probably already working on Destiny 3.
    Nowadays games rarely sell based on quality alone, which is a damn shame. If you spend enough money on marketing, you can be sure it will sell no matter if it's garbage. And nobody spends as much on marketing as Activision and Blizzard, you'd think they have infinite marketing budget. If only gaming companies spent half of it on the actual development, we'd have much more advanced games today.
    Cryolitycal
  • gervaise1gervaise1 Member EpicPosts: 6,919
    josko9 said:

    As for Blizzard, I'm surprised they only have 40mil of players across all games, especially if most of them are F2P Hearthstone players. Seems like WoW's numbers are very low.

    Something is low. Operating Margin for Blizzard:
    2016 average     41%
    2016 Q4             39%
    2017 average     33%
    2017 Q4             27%
    A steady decline. Same pattern for revenue and operating income as well; the latter well down.
    josko9Cryolitycal
  • Loke666Loke666 Member EpicPosts: 21,441
    I am not surprised, 2017 was a good economical year over all and people have money to spend.

    I would like a peak at Wows economy though, for us MMOers that would be more interesting then general numbers for a huge publisher.
  • MensurMensur Member RarePosts: 899

    Dauzqul said:

    I can't wait to read what all you pro-economist posters have to say!



    As a pro- I would like to say: The numbers are looking good..lol

    Proud MMORPG.com member since 2009! 




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