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| [Aug 02, 2012, 8:17 pm ET] - Share - Viewing Comments |
Activision Blizzard's Quarterly Financial Results beat analyst projections due to strong performance of the new installments in the Diablo and Skylanders series. The company is raising its outlook for the full year, in spite of word that World of Warcraft has shed another 1.1 million subscribers since their last report, leaving the MMORPG with only about nine million more paying subscribers than the typical such game: "Second-quarter sales, excluding changes in deferred revenue, rose 51 percent to $1.05 billion and beat the $837 million average of 19 analysts’ estimates compiled by Bloomberg. Total revenue fell 6.2 percent to $1.08 billion. The company’s “World of Warcraft” multiplayer online game lost 1.1 million subscribers in the period, finishing at 9.1 million."
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| 38. |
Re: Activision Blizzard Financial: WoW Subs Drop to 9.1M |
Aug 3, 2012, 09:44 |
HorrorScope |
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Cram wrote on Aug 3, 2012, 00:49:
Dades wrote on Aug 3, 2012, 00:34:
HorrorScope wrote on Aug 2, 2012, 23:30:
9.1 million is nothing to sneeze at. Pretty amazing that people can stick to something for so long like that.
Yeah but at the same time losing 10% of that in a quarter is nothing to scoff at either, that's a crazy churn rate with the kind of instability that drives investors crazy. Expansions bring people back but they don't stick around long.
This. If I were an investor, you know...the people that publically own this shit, I would be temporarily pleased with the Diablo 3 stuff, but horrified with WoW. Their investments were in part based on WOW having well over 10 million subscribers (seriously believing this would last, cause most of them don't really know anything), and that isn't happening.
The next time around, it'll be a lot quicker subscription loss then it was with Cata. They'll bring a million back for one quarter for when the expansion is released, and lose 2-3+ million within the next 1-2 quarter conference calls afterwards. Probably more with GW2 (no sub) coming on top of the other issues discussed in this thread.
Well if I were an investor I would have to be wise enough to know that this is bound to happen and prepare for it one way or another. I would have speculated a much larger drop quite a while back. Now if the business is all based on Wall Street, then well that is their problem, if you can have 9 mil. subs but not make it work at the end of the day, oh my what webs we weave. |
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