Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
October 31, 2014
arrowPress Releases
October 31, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Activision Blizzard Reports Boost In Q4 Revenue, Lays Off 500
Activision Blizzard Reports Boost In Q4 Revenue, Lays Off 500
February 9, 2011 | By Tom Curtis

February 9, 2011 | By Tom Curtis
Comments
    9 comments
More: Console/PC



Publisher Activision Blizzard on Wednesday announced increased revenues for the Xmas 2010 quarter, but revealed weaker than expected forecasts and plans to lay off 500 employees.

The publisher said it generated non-GAAP revenues of $2.55 billion for the quarter, compared to $2.50 billion in Q4 of last year. For the calendar year 2010, revenue reached $4.80 billion, up from $4.79 billion in 2009.

On an adjusted basis, profit for the quarter expressed in earnings per share was 53 cents a share, -- above analysts' average estimates of 51 cents a share, according to Reuters.

As reported elsewhere on Gamasutra, Activision Blizzard also announced it has disbanded the Guitar Hero business unit, and has canceled its upcoming Guitar Hero title for 2011. Activision also ceased development of the open-world title True Crime: Hong Kong.

Despite ending development on its popular Guitar Hero franchise, Activision Blizzard announced it was the number one publisher in North America and Europe in 2010.

In addition, the publisher's revenues from digital sales exceeded $470 million, up more than 40 percent from last year.

"Our revenues from digital channels, which now account for over 30 percent of our overall revenues, were driven by increased sales of Activision Publishing’s Call of Duty map packs and value-added services for Blizzard Entertainment’s World of Warcraft," said Activision CEO Bobby Kotick.

Kotick also noted that the most recent Call of Duty map pack, released February 1, broke Xbox Live sales records with over 1.4 million downloads in just 24 hours.

For the calendar year 2011, Activision Blizzard said it hopes to see revenues of $3.9 billion; analysts had predicted revenues of $4.69 billion, reports CNBC.

The company confirmed some new titles alongside its financial announcements, including a fresh iteration in the Spider-Man franchise and new TV-licensed games including Family Guy and Wipeout-based titles.

[UPDATE: In a SEC filing, Activision announced that it had "approved a restructuring plan involving a focus on the development and publication of a reduced slate of titles on a going-forward basis, including the discontinuation of the development of all music-based games and the closure of the related business unit and the cancellation of other titles then in production, and a related reduction in studio headcount and corporate overhead."

Due to a refocusing and "anticipation of a continuing weak environment for casual and music-based games", the plan will result in the layoff of approximately 500 employees, resulting in "a net pre-tax charge in the first two quarters of 2011, which is expected to total between $35 and $50 million, comprised of severance costs, the costs of other separation benefits and other exit costs."]


Related Jobs

Activision Publishing
Activision Publishing — Santa Monica, California, United States
[10.31.14]

Tools Programmer-Central Team
Vicarious Visions / Activision
Vicarious Visions / Activision — Albany, New York, United States
[10.31.14]

VFX Artist-Vicarious Visions
Magic Leap, Inc.
Magic Leap, Inc. — Wellington, New Zealand
[10.30.14]

Level Designer
Magic Leap, Inc.
Magic Leap, Inc. — Wellington, New Zealand
[10.30.14]

Lead Game Designer










Comments


Paul Lazenby
profile image
I'm surprised about True Crime, seems like they had been working on that for quite awhile.

Hopefully that team will land on their feet on another project. Does anyone know if they were internal or just hired for True Crime?

Carlo Delallana
profile image
I have never seen a genre rise and decline to oblivion this fast.

Steven An
profile image
It's a little sad that the music genre is plateauing, but I guess I'm not surprised. I don't really play them anymore. FPS's, on the other hand, seem to be incredibly resilient. The genre hasn't let up since Wolfenstein 3D, and it's showing no signs of slowing down! It has managed to transform itself over the years, keeping things fresh and fun.

Carlo Delallana
profile image
@Steven - the sheer number of FPS developers are probably the reason why. The design evolves rapidly as more teams compete in the genre with their own take on the category.

steve roger
profile image
I think one of the reasons that the music based games failed is because developers and publishers just didn't try to roll out a steady stream of high quality and relatively new songs for there games. They gave us way too many B sides and made us wait ridiculously long periods of time for new music and most of the time they didn't even bother. Instead we got the Beatles when wanted Lady Ga Ga hits along with Pink hits.

Aaron Casillas
profile image
I thought they would get into multi lingual markets with dlc, like norteno, mariachi etc...

Maurice Lefebvre
profile image
I wouldn't say that the music genre failed. Its just going to reduce to a more normal level for a niche genre. It's its original ballooning that was surprising.



All that is needed now is that at least one or two good music publisher survive the change and I'll bet the genre will endure (albeit at a diminished level) for a long time.

Luis Guimaraes
profile image
At the right frame in this same webpage: "Activision is Hiring for its Call of Duty franchise".

Lo Pan
profile image
I wonder with all the 'smart' executive minds at ATVI this disaster happened. I haven't heard of any Executive level departures as a result of this fiasco. That speaks volumes to the management style there.


none
 
Comment: