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Forums - Gaming - Activision stock is Down 17% in less than a Month, mainly due to Destiny and weak outlook

Leadified on 08 October 2014
Mr_No said:
I'm really doubting whether to get the game on PS4. It's not the gamer hate that leaves me undecided, but the general outlook. It's an incomplete game at launch with a lackluster story and poor looting/farming elements, and no amount of DLC's can fix it. The worst thing is that despite of the stock lowering 17%, they already made their millions and will attempt to do this in the future since it filled their pockets.


I am waiting for the price to go down and release a GOTY edition which has the most essential DLC but knowing Activision (Black Ops II is still full price on Steam), I'm not getting my hopes up.



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Baalzamon on 08 October 2014

I don't think the issue is Destiny not making money. It will certainly do that. The issue is Destiny needed to replace the WoW revenue source, which investors are now realizing is not going to happen. So something really needs to be done relatively quickly or Activision is going to have some major financial issues.



Money can't buy happiness. Just video games, which make me happy.

Nettles on 08 October 2014

Yeah, dunno if this has been mentioned but Blizzard canned their new MMO Titan which had been in dev for 7 years.Likely a bigger reason why ACTIBlizz stock has collapsed.



CosmicSex on 08 October 2014
Baalzamon said:
I don't think the issue is Destiny not making money. It will certainly do that. The issue is Destiny needed to replace the WoW revenue source, which investors are now realizing is not going to happen. So something really needs to be done relatively quickly or Activision is going to have some major financial issues.


WOW has been on the decline for a while now (probably some of the finest legs in gaming) but look at all of the reports about low COD  preorders.  Preorders give an indication of expected profits and usually COD is a lot higher.  So I believe that this is the real issue. 



Sharu on 08 October 2014
CosmicSex said:
Baalzamon said:
I don't think the issue is Destiny not making money. It will certainly do that. The issue is Destiny needed to replace the WoW revenue source, which investors are now realizing is not going to happen. So something really needs to be done relatively quickly or Activision is going to have some major financial issues.


WOW has been on the decline for a while now (probably some of the finest legs in gaming) but look at all of the reports about low COD  preorders.  Preorders give an indication of expected profits and usually COD is a lot higher.  So I believe that this is the real issue. 

+1. COD decline is the main issue here.



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Barenziah on 08 October 2014

when is the PC release fro destiny,it is getting one right



  

I smell like the dark forest of Dwemereth in the morning mist                                                   fanboy til i'm bankrupt

bananaking21 on 08 October 2014

Well, that was a shitty article



kumagawa on 08 October 2014

Activision's stock price for the past 5 years hmm looks way better than last year.

http://finance.yahoo.com/echarts?s=ATVI+Interactive#symbol=ATVI;range=5y

Also stock always goes down before the release of earnings report.



Baalzamon on 08 October 2014

I really don't think CoD is the issue at all. We are on a new console cycle, so as an investor, you really can't expect the same kind of sales for this iteration. I'd be more inclined to look at attachment rate for the preorders relative to the new consoles. I'm sure they are perfectly fine.



Money can't buy happiness. Just video games, which make me happy.

Dunban67 on 08 October 2014
kappie1977 said:
kowenicki said:
kupomogli said:

So this guy is trying to spin Destiny as a failure by saying the sales have went down week over week? How many games sales haven't went down week over week? 0.01% of them?

If Activision lost money, it's not on Destiny.  They've already stated they've made more back than they put into it.


Can you link me to that.  I find it hard to believe given the nature of the deal with Bungie. 

OT

To be fair the stock is still up 24% in the last year.  Could just be profit taking from slightly nervous investors.

http://www.blackenterprise.com/lifestyle/bungies-destiny-earns-500m-in-first-day-in-stores/

http://www.cnet.com/news/destiny-hits-500-million-in-sales-marking-largest-ever-launch-of-a-new-game-franchise/

And from what I understood, the  $ 500M cost of the game is for 10 years(so for new games, DLC's etc) so in that terms it made them enough money for now.


I think your last point is the reason, that investors just reacted on some news and wanted to sell their stock!

The $500 million number must have been shipped not sold - Activisions website says they sold $325+- million after 5 days