Selected Business Highlights:
- Activision Publishing had its highest ever third quarter non-GAAP operating income, driven by strong engagement and digital revenue, with Q3 monthly active users (MAUs)B up 17% year-over-year, and the largest Q3 and year-to-date digital revenues in its history. Activision Publishing continues to have 3 of the top 5 games on next-generation consoles life-to-date.2
- Activision Publishing's Call of Duty® franchise year-to-date non-GAAP revenues increased by a double-digit percentage year-over-year due to strong catalog sales of Call of Duty: Black Ops, Call of Duty: Black Ops II, and Call of Duty: Advanced Warfare, both for full game and Supply Drops. Call of Duty: Advanced Warfare remains the No. 1 game on next-generation consoles life-to-date, as it has been since its launch a year ago.2
- On September 15, 2015, Activision Publishing and Bungie released The Taken King, the largest update to the Destiny universe yet, which was enthusiastically received by fans and critics alike. Day-one downloads broke PlayStation records, day-one engagement saw the highest number of active players in Destiny's history, daily player engagement is now well above 3 hours per day and the Destiny community has climbed to over 25 million registered players. Since its launch, Destiny has become the most watched console game on Twitch.
- On September 20, 2015, Activision Publishing released Skylanders® SuperChargers, the next installment in the franchise with all new vehicles, action figures and exclusive Nintendo characters. Even with increased competition, SuperChargers is one of Skylanders' highest-rated entries to date and has strong engagement, with more toys per player than last year.
- Blizzard Entertainment's third quarter MAUsB were up 50% year-over-year, reflecting strong engagement with the online player community.
- World of Warcraft® subscriptions remained relatively stable, ending the quarter at 5.5 million subscribersC. Players are excited about the upcoming expansion, Legion™, which will feature a new class, customizable Artifact weapons, class order halls, and much more. World of Warcraft remains the No. 1 subscription‐based MMORPG in the world.
- On August 24, 2015, Blizzard Entertainment launched The Grand Tournament™, the second expansion for Hearthstone®: Heroes of Warcraft™, with over 130 new cards. As a result of this new content, continued strength on mobile, and continued strength across geographies, key engagement metrics grew 77% year-over-year and set a new quarterly revenue record for the franchise.
- Blizzard Entertainment brought new players into Heroes of the Storm™ with the release of The Eternal Conflict, a series of content and hero additions based on the Diablo® universe. Blizzard also held the Heroes of the Storm regional championships as part of its Road to BlizzCon® esports series, including the Americas Championship in Las Vegas and the Europe Championship in Prague.
- Blizzard Entertainment's Diablo III continued to bring in new players in Q3, and in China, the game passed the 2-million-unit milestone.
- Blizzard Entertainment began closed beta testing for Overwatch™ on October 27, 2015, with over 7 million players signed-up to participate, not including China.
CJ_Parker wrote on Nov 4, 2015, 09:42:Slick wrote on Nov 3, 2015, 22:13:
then I guess... enjoy your $5.9B purchase of CandyCrush! everytime you've given Acti-Bliz a dollar, you've basically been funding this deal. that's where your dollars go.
If you can't understand the difference between spending money on your own studios, developing new IPs, and generally trying to push gaming forward... and paying $5.9B for fucking candy crush, then you might just be too far gone for help.
You vote with your dollars, and you're obviously okay with a company taking zero chances, pushing out a watered down lowest-common-denominator rehash every 3 years. Oh and the billions they'll make off this garbage? You can rest assured that it will be well spent.![]()
I'd rather give my income to publishers who A) take risks, B) employ thousands of developers, and not the publishers who A) never take a risk, and B) employ as few actual artists as they can financially get away with.
and to wash your hands of what's actually going on as "all companies only care about their bottom line" is irresponsible. Obviously they exist to make money, HOW they go about doing that is what's under scrutiny here, not the WHY. Elon Musk makes billions making electric cars, meanwhile BP makes billions from raping the planet and spitting carbon into the air... they both just want to make money! *washes hands* lol. get a clue.
^ biggest LOL ever when this is coming from a guy who is defending Star Wars Battlefront like a slobbering dripping wet little fangurl.
EA is just as guilty of every single thing you (rightfully) accuse ActiBlizz of, dude.
siapnar wrote on Nov 3, 2015, 11:34:
This is going to bite them in the ass. There's no way that Candy Crush will continue to rake in the kind of money it has been.
The ROI on this seems poor.
Also, more faith lost in the human race. That game is probably the most annoying piece of "entertainment" on the planet
Slick wrote on Nov 3, 2015, 22:13:
then I guess... enjoy your $5.9B purchase of CandyCrush! everytime you've given Acti-Bliz a dollar, you've basically been funding this deal. that's where your dollars go.
If you can't understand the difference between spending money on your own studios, developing new IPs, and generally trying to push gaming forward... and paying $5.9B for fucking candy crush, then you might just be too far gone for help.
You vote with your dollars, and you're obviously okay with a company taking zero chances, pushing out a watered down lowest-common-denominator rehash every 3 years. Oh and the billions they'll make off this garbage? You can rest assured that it will be well spent.![]()
I'd rather give my income to publishers who A) take risks, B) employ thousands of developers, and not the publishers who A) never take a risk, and B) employ as few actual artists as they can financially get away with.
and to wash your hands of what's actually going on as "all companies only care about their bottom line" is irresponsible. Obviously they exist to make money, HOW they go about doing that is what's under scrutiny here, not the WHY. Elon Musk makes billions making electric cars, meanwhile BP makes billions from raping the planet and spitting carbon into the air... they both just want to make money! *washes hands* lol. get a clue.
Slick wrote on Nov 3, 2015, 22:13:
then I guess... enjoy your $5.9B purchase of CandyCrush! everytime you've given Acti-Bliz a dollar, you've basically been funding this deal. that's where your dollars go.
If you can't understand the difference between spending money on your own studios, developing new IPs, and generally trying to push gaming forward... and paying $5.9B for fucking candy crush, then you might just be too far gone for help.
You vote with your dollars, and you're obviously okay with a company taking zero chances, pushing out a watered down lowest-common-denominator rehash every 3 years. Oh and the billions they'll make off this garbage? You can rest assured that it will be well spent.![]()
I'd rather give my income to publishers who A) take risks, B) employ thousands of developers, and not the publishers who A) never take a risk, and B) employ as few actual artists as they can financially get away with.
and to wash your hands of what's actually going on as "all companies only care about their bottom line" is irresponsible. Obviously they exist to make money, HOW they go about doing that is what's under scrutiny here, not the WHY. Elon Musk makes billions making electric cars, meanwhile BP makes billions from raping the planet and spitting carbon into the air... they both just want to make money! *washes hands* lol. get a clue.
InBlack wrote on Nov 4, 2015, 03:04:
Why are you people even engaging Slick. Everyone knows that he shills for EA like he was on their fucking payroll. The sad thing is: He isn't.
Slick wrote on Nov 3, 2015, 20:19:
Where does your money go?
When you buy a card pack in Hearthstone, or renew a sub in WoW? You probably think that you're supporting game developers to continue to make content for your favorite game. NOPE. It went to buy candy crush.
Where does the money go when Valve makes a flat %30 on essentially the entire PC gaming industry? You think they re-invest it back into studios? nope! They pocket it. That where your money goes every time you buy from them.
last I counted in the past 20 years, Valve and Bliz have each put out 5 IPs. fucking five. And yet EA and Ubi are the bad guys, the big evil corporations... you know, the ones who employ over 5000+ employees each. Who make games.
So keep giving your money to people who openly give you the finger, who are essentially spending your good will on crack. And then be sure to attack the other guys who put food on the table for literally thousands of families, and bring many times more games, and new IPs (yes and old recycled IPs too) into the culture of gaming.
Massive Corporations like Acti-Bliz and Valve aren't concerned with making games, they're concerned with sucking up every penny of disposable income from gamers while contributing nothing to the industry.
Stanly Manly wrote on Nov 3, 2015, 18:53:
What's all this talk about making games? This is about making money. You think CEO's give a shit about anything but making shareholders happy and seeing profit?
jacobvandy wrote on Nov 3, 2015, 16:39:fujiJuice wrote on Nov 3, 2015, 14:37:
They are buying the userbase, just like Microsoft did.
I think you're spot on. It's not billions of dollars just to own the games and earn back that much money or more, they're putting their name on them so that hundreds of millions of people -- many of which would be hearing about them for the first time -- might begin to associate Activision with the kind of freemium crap they like. Then maybe when they see an ad for Call of Duty or whatever else, they might give that a try, too. It's simple advertising, and that figure probably looks like peanuts compared to how much they're spending on all their other marketing every year, targeting a much smaller segment of people in the world.
fujiJuice wrote on Nov 3, 2015, 14:37:
They are buying the userbase, just like Microsoft did.
Slick wrote on Nov 3, 2015, 10:59:Parallax Abstraction wrote on Nov 3, 2015, 10:13:
This is like a nexus of evil management.
Goddamn, can you fucking believe 5.9B for candy crush????
just imagine for a moment, if they spent that on new IPs, you could pay 5900 developers $100k a year EACH for 10 years. I'm pretty sure you could build something more impressive than candy crush with that army. But when has Acti-Bliz gambled on anything that doesn't have a proven multi-billion dollar revenue stream lately?
Just like Valve, who literally haven't had an original thought since the original Half-Life (count em: CounterStrike, Team Fortress, Portal, Left4Dead, Dota2, ALL based off of mods which Valve bought out).
The lesson here is clear: don't take chances. Companies who actually employ developers like EA and Ubisoft take chances, and lots of their games are shit. But the public has spoken, they'd rather have a money-grubbing corp like Valve or Acti-Bliz spoon-feed them dumbed-down test-audience-approved, over-marketed, lowest-common-denominator pieces of shovelware.
Slick wrote on Nov 3, 2015, 10:59:Parallax Abstraction wrote on Nov 3, 2015, 10:13:Just like Valve, who literally haven't had an original thought since the original Half-Life (count em: CounterStrike, Team Fortress, Portal, Left4Dead, Dota2, ALL based off of mods which Valve bought out).
This is like a nexus of evil management.
killer_roach wrote on Nov 3, 2015, 11:37:PacoTaco wrote on Nov 3, 2015, 11:18:
Can anyone do the math on how much Candy needs to be sold to break even on this deal? Must be 1000 clones of Candy Crush at this point and done mostly by terrible devs.
Last I had heard, King was estimated to be making $250 million a year in profit off of their titles. Assuming flat revenue growth, that means Activision bought them at a forward P/E of about 24 - which is actually on the low side for software companies. Makes me think there's a considerable (possibly massive) risk premium built into this purchase.
Mind you, it'd make sense to take as much of a risk premium on this company as possible - King doesn't really have the same sort of network infrastructure that even Activision has, much less Ubisoft or EA, and they don't have any significant software tech assets like engines, APIs, or patents. What Activision bought was a franchise built on some aging IP, and paid dearly for it. This makes Microsoft's purchase of Mojang seem sane in comparison - the only rival in terms of a ballsy acquisition in online/mobile gaming that I can think of was the rumors of Microsoft buying Zynga before they ran away from that potential buyout screaming in terror.
InBlack wrote on Nov 3, 2015, 09:49:
All hail the new Kings of Casual!
All Hail Diablo Poop Crush!
All Hail Heroes of Warcraft Sugar Candy Mountain!
All Hail Heart of Stone Mega Kerrigan Crush Saga!
All Hail! Hail! Hail!