Activision Blizzard’s stock price started to fall on today, and it’s down by more than 14% on the New York Stock Exchange following the company’s latest earnings report. Tuesday, November 2nd Activision Blizzard announced Overwatch 2 and Diablo IV had been indefinitely delayed, which startled investors.
Activision Blizzard posted revenue of $2.07 billion for the quarter ending September 30th and a profit of $639 million. Both numbers represent year-over-year gains. However, the downturn in the stock price is most likely related to Blizzard’s announcement of the delays for these two major games, which were expected to launch in 2022.
Another factor that may have scared investors was Activision Blizzard’s acknowledgement that it is seeing ” increased competition in the market for our talent and higher voluntary turnover” in the aftermath of the lawsuits and investigations against the company over sexual harassment and discrimination against women. CEO Bobby Kotick added that Activision Blizzard will “continue to face challenging and negative media attention.”
While the company’s stock price fell significantly this week, Activision Blizzard’s share value is up by more than 60% over the last five years.
Blizzard suffered another blow this week with co-leader Jen Oneal announcing she is leaving the company three months after taking on this new role.