Activision Shareholders Get Jittery Over Starcraft 2

[Andy Chalk]

Activision Shareholders Get Jittery Over Starcraft 2

StarCraft 2 [http://www.activisionblizzard.com/] is going to be delayed.

The publishing giant has already pushed Brean Murray [http://www.singularity-game.com/] analyst Jess Lubert says that prospect now looks highly unlikely. "The beta testing for StarCraft hasn't started yet," he said. "If it starts in August and takes 5-6 months, then launching the game this year is next to impossible."

Todd Greenwald of Signal Hill [http://www.signalhill.com/] echoed those comments, saying, "While it is not inevitable that StarCraft 2 is delayed, the speculation is running rampant that this is the case."

Activision still has one of the industry's strongest lineups of holiday releases, however, and one game in particular that could mitigate the impact if StarCraft 2 slips: Cowen & Co. [http://modernwarfare2.infinityward.com/] predicts the game could move 8.5 million units while Greenwald says it could surpass ten million. "Depending on mix, Modern Warfare 2 strength should mitigate any StarCraft 2 delay, and then some," he said.

And while uncertainty about the holiday schedule, coupled with slowing North American game sales and difficulties getting World of Warcraft relaunched [http://www.escapistmagazine.com/news/view/93334-WoW-to-Partially-Relaunch-in-China] in China, have taken a toll on the company, Lubert said that a confirmed release date for StarCraft 2, regardless of whether or not it makes the holiday window, would take a lot of the pressure off the company. "Even without StarCraft, I think Activision should be able to get to their current guidance for the year. But without StarCraft, getting an upside to that number might be challenging," Lubert said. "I just think investors need that certainty of when it will ship, and it will remove this overhang."

Source: Marketwatch [http://www.marketwatch.com/story/activision-pressured-on-worries-about-game-delay-2009-07-28?siteid=yhoof]


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[HardRockSamurai]

My my. Is it just me, or has Activision been in the news a lot lately?

Plus, if Starcraft 2 gets delayed any further, some Koreans are going to start committing mass suicide..........I wish I was joking..........

 

[Fat Hippo]

Activision just better not try to rush Blizzard into bringing it out sooner. If they do, they're gonna find my boot (and probably that of a million south koreans) up their ass.

 

[Low Key]

Activision certainly seems like they are spreading themselves far too thin. Making commitments when there is no possible way to live up to them is a bad way to go about business. Coupled with Kotick talking about a price increase, it makes me and many others wonder why Activision deserves our hard earned money. I hope that scares the living bejeezus out of the shareholders. At least that is something Kotick might notice and want to rectify.

 

[Toty54]

I believe it's called Karma

 

[Radeonx]

Since it is Activision, I am not surprised at all.
I hope that Starcraft is good, though, especially since I'm going to end up paying for 3 separate games.

 

[Aac18]

I believe it's called Karma

So true.

 

[Credge]

This really doesn't bother me in the slightest. The worst thing to happen to Blizzard was to add Activision to the front of it.

 

[gibboss28]

Its always good to see Activision having faith.

 

[Pendragon9]

Again with Activision wanting more than what's reasonable. Will they ever stop?

Yeesh, I mean let Blizzard finish Starcraft 2 already. And don't be so antsy on the release date. You want a crappy rushed product or a finished masterpiece? I'm waiting diligently for it to come out. Activision should too.

 

[Xanadu84]

Chill Activision. Unless your getting evicted from your apartment and need cash now, SC2 will make you bazillions of dollars. The only thing that's going to hurt your sales is if you mess with Blizzards system.

 

[sheic99]

I believe it's called Karma

I believe it's not, Karma doesn't impact a person until after they die.

 

[oliveira8]

So what happened to Modern Warfare 2 that will sell 14 million units or whatever number they pulled out of their asses?

 

[FightThePower]

That thing in the picture isn't anything to do with Starcraft 2 actually, it's Activision's CEO.

 

[LaBambaMan]

How have they not even started Beta yet? What have they been doing for the last several years, playing with their dicks?

 

[RebelRising]

How have they not even started Beta yet? What have they been doing for the last several years, playing with their dicks?

No, they've been designing and developing this game, probably with a lot of playtesting and reworking involved.

 

[Alone Disciple]

Hey as far as I'm concerned, let the stock plummet. When it's dirt cheap, I'll buy as much as I possibly can and then LMAO when SC2 goes gold and breaks yet more sales records. When it does release, Blizzard may jsut as well open a wing at Fort Knox.

Silly impatient investors.

 

[AliMck]

I just want to say that I and my brother called it!

We were right that since the merger between activision and blizzard that Blizzard needed to show the shareholders of activision that the merger was profitable. This means that Blizzard is now being pressured by the publisher model to release video games instead of their method of "The game is ready when it is ready" model. Currently since the merger Blizzard hasn't released a single game that affected their quarterly reports. While Blizzard has made money for activision via subscriptions the proof to show that merging with Blizzard as a good idea is not there because without a product selling there is no need to be merged with a company.

This is going to be a make or break moment for Blizzard and Activision and their shareholders to see if the merger will last. We will see if the shareholders will want to pressure activision to break off the merger if Blizzard doesn't produce a game. Or will Blizzard give in and follow the activision model and give dates to creating their games.

For those dissenters saying WOTLK. That was done before the merger between the two companies so aside from the monthly subscriptions like I mentioned that made activision hand over fist in cash; Blizzard still has yet to release a product to merit the merger for sharesholders.

Wasn't the merger Vivendi and Activision, but Blizzards name was used as they are the big name . I'm certain there is info somewhere that points out the publisher only gets the money from the box sales and not from the subs, but as I cannot find it atm I'll have to get back on that one. Anyways WoW earns blizzard enough money regardless and they are that high profile a developer that they can effectively ignore activisions pressuring. As Alone Disciple said SC2 and blizzard will net activision a LOT of money over the next few years, all they have to do is sit on their hands and leave them well alone.

Edit: Digging around a bit I was able to find that Activision is not blizzards publisher, Blizzard is its OWN publisher, which means that beyond financial support for workers etc and money upfront for developing new games. And going back to my previous post about the amount of money that blizzard earns from WoW, then they must be in the enviable position for a developer of being able to finance their own games.

 

[Lord Thodin]

Hey if they push it and fuck it up, sucks to be them. Good job on missing out on a shit load of American buyers and some Korean political officials pushing to get that game into the olympics