. A subsequent article by The Wall Street Journal reported the company’s toxic internal culture extended beyond the Blizzard unit initially targeted in the California lawsuit., with subpar critic scores at launch and later data indicating poor sales.
In a note Tuesday morning, Jefferies analyst Andrew Uerkwitz predicted a “very rare miss” from Activision for its fourth-quarter results, due Feb. 3. Citing game issues and the company’s internal strife, Mr. Uerkwitz added, “We suspect many gamers have chosen to take a break from Call of Duty.” The combination of issues has had a deleterious effect on Activision’s market value, thus providing a rare opportunity for Microsoft to “propel our new forms of distribution and monetization,” as the company’s gaming chief Phil Spencer put it on a call Tuesday.Microsoft now has a subscription-based game business called Game Pass and is developing a cloud gaming service. The former is doing well, with more than 25 million subscribers to date, while the latter is still a work in progress.
That is assuming the property isn’t permanently damaged. And the deal also assumes Microsoft can oversee fixes to Activision’s culture enough to retain the necessary talent to keep producing blockbuster games with blockbuster budgets.more than three dozen employees as part of its internal cleanup effort, The Wall Street Journal reported over the weekend. But more work remains, even with embattled Activision CEO Bobby Kotick expected to depart after the deal closes, according to the Journal.
With nearly $84 billion in net cash, Microsoft is one of the few with the means to make such a major bet and still maintain its share buyback and other cash-return goals. But it will still take some deft handling to keep Activision’s self-inflicted wounds from festering on its soon-to-be owner.Ms. Wu, a target of the GamerGate scandal, says Activision Blizzard’s CEO led a culture of non-accountability, during an interview at WSJ’s Women In: The Tech Industry event.
heard omarkassamUS
heard This deal says a lot about the growth rate of gaming vs that of Microsoft’s core software business. We’re at the point in the cycle now when deals like these occur to perpetuate high expected growth rates that support excessive valuations.
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Microsoft buys Activision in a nearly $70 billion dealInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. Hi, I am a structural engineer from Iran who have many ideas. I have summarized some of my ideas on my twitter(I suggest look at the idea of generating electricity by gravity). I want to work with companies and investors. Do you want to cooperate? 微软正在以近700亿美元的价格收购《使命召唤》出版商Activision
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