Following delays to two of its most anticipated titles and ongoing changes in leadership, Activision Blizzard’s share price has dropped by more than 14%.
Activision Blizzard’s stock price started today over 14% down following delays to Overwatch 2 and Diablo IV that were announced last night, despite the company announcing a quarterly revenue of $2.07 billion.
While Overwatch 2 and Diablo IV have never been given a firm release window, both were expected to contribute to a positive 2022 for a publisher still beset by a lawsuit over its working culture and harassment accusations.
Activision Blizzard drops 14%, company acknowledges staff turnover
During the company’s earnings call, Chief Operating Officer Daniel Alegre said “while we are still planning to deliver a substantial amount of content from Blizzard next year, we are now planning for a later launch for ‘Overwatch 2’ and ‘Diablo IV’ than originally envisaged”.
“These are two of the most eagerly anticipated titles in the industry, and our teams have made great strides towards completion in recent quarters.”
Activision Blizzard remains bullish on its Q4 prospects, however, forecasting $2.02 billion in revenue for the next quarter, with a focus on Call of Duty Vanguard and its upcoming Warzone integration.
Alegre also noted that “we have seen increased competition in the market for our talent and higher voluntary turnover that has partly offset our success in hiring”, following the ongoing lawsuit.
Jen Oneal, one of two co-leaders promoted in August, stepped down earlier this week. Mike Ybarra will remain the sole leader of Blizzard.