Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

Thursday, August 4, 2011

How's Blizzard Doing At the Bank?

Pork bellies and Activision Blizzard are on the rise
Activision Blizzard held it's 2nd Quarter earnings call the other day and announced that they lost another 300,000 subscribers between April and June of this year. Add that to the 600,000 lost in the first quarter, and that's around a 7% subscriber loss this year.

Before continuing forth, we should review Blizzard's Parent Company structure, just so that the rest of this article maintains context.  The company that makes and develops WoW is called "Blizzard Entertainment."  The company that publishes WoW is called Activision Blizzard. The company that owns Activision Blizzard is a French super-conglomerate called Vivendi. Vivendi is traded on one public stock exchange or another.

Is Blizzard in trouble?  Emphatically: No.

At the same time subscribers are down, the revenues from "properties such as WoW" hit a new record, showing a 27% increase from the same quarter a year ago.  Opening up Cataclysm in China this year has certainly been a part of that growth. Next quarter, we can look forward to hearing about WoW's recent expansion into Portuguese in Brazil has upped the bottom line as well.