Activision-Blizzard and their financial future
by Mike Schramm 
Aug 31st 2009 at 6:00PM
Barron's has a long article up about Blizzard's corporate overlords at Activision-Blizzard, and as is usual with most pieces of Activision news, people will probably see in it what they want to see. Those who think Bobby Kotick is just a money-grubbing exploiter will find more fuel for their firey fanboy rage: apparently he's a follower of Las Vegas casino entrepreneur Steve Wynn, and is modeling some of Activision-Blizzard's business plan off of that guy, Shareholders, however, will probably be thrilled. In terms of a purely financial sense, Activision-Blizzard is apparently one of the shinest futures around, with Kotick bragging that videogames will eclipse film and TV in terms of moneymaking in just a few years.From our perspective, as longtime fans and players of Blizzard's games, the most interesting thing I see here is that Barron's makes no distinction at all between Activision and Blizzard any more -- the Activision-Blizzard company, according to the article, is equally responsible for both the Starcraft and Transformers franchises. Obviously, as gamers, we see a huge distinction between those two: one is a classic, storied, much-loved videogame series, and the other is a cash-in on a license that's panned everywhere but the box office. But for the financial guys, they're just both properties of Activision-Blizzard. That's not to say that our Blizzard is entirely lost (anyone who was at BlizzCon last week knows that's not true), but it is a sign that the merger is no longer news. From an outsider perspective, Guitar Hero and World of Warcraft are just two cash cows from the same company.
Filed under: Analysis / Opinion, Blizzard, News items, Economy, NPCs
Reader Comments (Page 1 of 3)
Galilyse Aug 31st 2009 6:09PM
Let me be the first to say "UGH". The merger name sounds terrible....I don't want to play a game with the Activision name tacked onto the box. They best keep their grubby mitts of World of Warcraft.
Jamie Aug 31st 2009 6:17PM
I choose you, Actizzard!
Okay, Blizzivision, you're up next!
Nope you're totally right Activision-Blizzard is a terrible name.
Chukie Aug 31st 2009 6:26PM
Actiblizzardvision imo
Chukie Aug 31st 2009 6:28PM
And they better keep their grubby mitts off all of blizzard IP I mean it starcraft warcraft diablo and the new one in development. Activision exists to provide marketing and publishing the game for blizz nothing more.
Sorta like a book publishing company. They dont touch the authors shit.
percinho Aug 31st 2009 6:31PM
I just don't understand this. Surely you buy/play a game based on whether it's any good or not, not on what the publisher's name on the box is? If you stop enjoying WoW, stop playing it. If you keep enjoying it, keep playing it. Surely it's as simple as that?
SIRIUS Aug 31st 2009 6:57PM
-Percinho
Its more of a "The game that I loved was changed into something horrible because another company started messing arount with it" thing. Its like if a cook makes you a meal that you eat regularly but, a new cook joins up with the regular cook and adds his own recipies and flavours to the meal. You may not enjoy it and just wish you could have had the regular meal once more.
People dont want a good thing to be ruined by a company who's known for ... well, nothing special.
Dreadskull Aug 31st 2009 10:18PM
They need to just call it "Blizzard and Activision" -_-
It's kind of freaky to think about how Blizz/Activ are together like that... because they're practically opposites.
Activision, while it does have a handful of quality games, is now known more for trying to beat sequels upon sequels out of its "dead horse" franchises (*cough*SpyroandGuitarHero*cough*). Kotick pretty much seems to be in it for the money, and... seems to think making a billion sequels of various games/making crappy games off of movie licenses (the only good one that I've played so far (mainly because it originally wasn't tied in with the movie) was X-Men Origins: Wolverine) is more important than making original, quality-packed games.
Blizzard on the other hand is all about the quality, hence why we haven't seen Starcraft Tennis or Diablo 10 or World of Warcraft: Let's Go Kick Sargeras's Ass As Level 999s. All of Blizz's games are memorable, and they all have a large amount of lasting fun. Blizzard earns their money because they make horribly addicting games, not because they get super lucky with a few games and then make a bazillion sequels/spin offs. Plus, it's obvious they care about the customer first, since... it seems like a good majority of Blizzard's employees play the games they work on, and they obviously take time and care into making high quality and highly addictive games so they can enjoy playing them alongside all of us.
Oh well, Activision Blizzard is just a name for the share holders and whatnot to use. Any real gamer can easily tell what's purely made by Blizzard and what falls out of Activision's dumpster of sequels/spin offs (with, like I said, a handful of really good quality games). As long as Kotick doesn't try to poke his head into Blizzcon to try and gloat about how much money the WoW players are feeding the company,
At least Activision's sequels aren't as bad as Sega's recent (since... 2004 or so? Whenever they started making crap like Sonic Heroes and Shadow the Hedgehog) mass of Sonic games that have made Sonic the Hedgehog the laughing stock of video game characters.
PeeWee Sep 1st 2009 6:39AM
"Sorta like a book publishing company. They dont touch the authors shit."
*giggle* You've never had a book published, I see.
ayalafatalis Aug 31st 2009 6:14PM
This article demands the picture of the hunter named 'Activision' with the cat named "Blizzard' as thier pet.
R. Aug 31st 2009 6:28PM
So what does Barrons chat sound like?
"I say, Old Boy...Chuck Norris has more Money than you"
Hailene Aug 31st 2009 6:34PM
/thread
uncaringbear Aug 31st 2009 7:37PM
lolz, the forecast for your mom's equities and assets calls for continued growth.
Plastic Rat Sep 1st 2009 1:28AM
Grats, you took me from thoughts of punching Bobby Kotick in the face repeatedly to laughing out loud in a few seconds.
R. wins thread.
buddyrandom Sep 4th 2009 4:55PM
transformers battle mechesque is the next blizzard mmo? nice
Langis Langley Aug 31st 2009 6:34PM
Every single one of Blizzard's properties is a cash cow. Make no mistake.
Galilyse Aug 31st 2009 6:38PM
WTF?! Someone downgraded my post?
*sigh* whatever....
And no I buy nothing with the Activision name on the front of it. The company has a terrible track record in Europe with video games. I've been putting my pocket money into the Blizzard franchise since the days of Warcraft 2, so yeah Activision better well keep it's bloody paws off.
percinho Aug 31st 2009 6:42PM
I base my game-buying choices on how good the game is. Each to their own I guess...
Chukie Aug 31st 2009 6:51PM
And you know how good a game is on release day how? Surely not the hype and game trailers... those both had AoC and War as the games to end all games.
I have bought every blizzard game with out fail within days of its release since starcraft and
own every blizz pc game ever made. Not once in 15 years have I been disappointed with a purchase from blizzard.
So yes on name alone I will buy a blizzard game. I trust that name to make a outstanding product time and time again. I don't have to wait for reviews and wonder if the game will be good.
dAnixx Sep 1st 2009 12:58PM
Just because you hate the publisher you shouldn't hate the game. Oh, and Call of Duty Modern Warfare 2 looks BADASS
cmichaelcooper Aug 31st 2009 6:38PM
ActiBlizzion. Duh.
Welcome to corporate financial structuring and strategy. As long as WoW, and other Blizzard properties continue to do as well as they do, the money-hoarders at ActiBlizzion won't step in. But as soon as there is a significant fall off, you can bet the suits will step in, discard any regard they once gave to actual game designers, and think they can save the franchise with some nonsense pandering to what they think will bring the money back. If the money doesn't come back, then it was obviously a mistake of the game designers because they don't know what players really want, and they will be thrown out. Pretty standard fare in corporate America, no matter what the consumers actually want.