Activision Blizzard facing layoffs.

[Neon Ignition]

Has there been a recent update on how Black Ops 4 has done? That's got to be a big factor for any decisions at Activision as if it didn't cause an uptick it's unlikely anything will for CoD now (my gut tells me Blackout might have been the winner for them though)

[Digfox]

Has there been a recent update on how Black Ops 4 has done? That's got to be a big factor for any decisions at Activision as if it didn't cause an uptick it's unlikely anything will for CoD now (my gut tells me Blackout might have been the winner for them though)

I don't believe so, potentially suggesting it's stagnating or certainly not setting sales records albeit it might be up on WW2. Again EOY financial results published tomorrow so more will detail may emerge then.

[Team Andromeda]

Nintendo don’t do as well as they predict, board takes a pay cut out of shame.

And layoff over 300 staff

[fishbowlhead]

And layoff over 300 staff

I’m shocked!

Well not that shocked.

[Team Andromeda]

I’m shocked!

Well not that shocked.

I'm not... I've been gaming since 1984 and I've lost count of the amount of staff layoff's, studio shutdowns or selloff's even when the Parent corp is making millions/billions; Much the same for all of the entertainment industry.

What I don't like to see, is when a CEO gets a huge bonus and stupid pay rise, while the corp in question is making a massive loss, like with some of the Banks.

[Neon Ignition]

Another thing, I wonder how much bracing is going to be going on in the next 12 months? The arrival of next gen consoles was pretty hammering in some corners last time so with new machines on the horizon there could be some hedging of bets

[Asura]

Another thing, I wonder how much bracing is going to be going on in the next 12 months? The arrival of next gen consoles was pretty hammering in some corners last time so with new machines on the horizon there could be some hedging of bets

The arrival of new machines shouldn't be the big problem it was last time (though admittedly, this gets said every time).

Many more games are being made with stuff like Unreal, so it should be more straightforward to bridge the gap.

The point was between the Xbox 360 and PS4 releases, gaming computer architecture changed quite a bit. Whereas this time around, the computer I built in 2017 was basically the same as the one I built in 2012, just everything was better/faster.

[Team Andromeda]

The arrival of new machines shouldn't be the big problem it was last time (though admittedly, this gets said every time).

Agreed, I can't see it being as bad as the transition from 16 bit and 2D Gfx in the home and Arcades to 32bit and 3D. Which sadly saw so many classic gaming corps having issues with the jump in tech and sadly some even go to the wall.

Next gen should be really good for developers thanks to the use of Ryzen CPU's, it should be a huge pick up in performance over Jaguar CPU's

[Neon Ignition]

There's usually a sales tail off for a while though where new machines take a long while to get a big enough userbase to sustain them but sales of older machines taper off. I know the immediate go to there is 'backwards compatibility' but in real terms that won't translate as it's the less core audience that takes time to win over meaning those 15m sales projections start to get less frequent for a while

[fishbowlhead]

I can see next PS5 & Xbox being fully bc off the hardware and every gen going forward from now on. As the architecture is just a pc then this will become the norm like pc.

The old way of making some crazy architecture that only the 1st party in house devs can program for are dead.

[wakka]

It would be nice if they were BC. I'm at a point where I've got a launch PS4 and a One S, and I won't pick up a 4K TV till (most likely) the end of this year. By that point, it just won't be worth picking up one of the mid-gen upgrade machines (Pro or XBX), since there'll only be 12 months before they're greatly superseded.

I can see myself going for a PS5/XB4 at launch this time, because I think with the right TV, there'll be much greater value in cross gen releases than there was in the jump from PS3 to PS4. I didn't buy a PS4 till 18 months in since prior to that there was so little in the way of games that weren't also on PS3, and the cross gen 'boost' felt limited.

If the PS5 was also BC, so I could instantly have access to all my disc games and PS+ games on what was effectively a PS4 Pro Plus, that would be a real sweetener for me, and could be a bit of a deal sealer at launch.

[Digfox]

Early suggestions are 8% reduction in Acti's just under 10,000 workforce.

Zhuge (ResetEra) has the following snapshot from the currently underway EOY Financial call.

https://twitter.com/ZhugeEX/status/1095440576797962240

- 2019 revenue expected to be down -13% YoY
- Focus on COD with new game launching in Q4 2019.
- COD coming to mobile with Tencent developed game
- Sekiro + Crash Team Racing to support Acti pipeline
- Blizzard segment driving lower forecast.

Probably the key slide on upcoming year:

https://twitter.com/ZhugeEX/status/1095439356318441474



So sounds like 2019 is a transition year, but they have stated an increase in development resources, and back office/marketing roles are amongst those going.

[Digfox]

Not too much new in this article but a good summary:

Activision-Blizzard sees "record year," plans to decrease net headcount by 8% - Company prepares for "transition year" as it refocuses on development of core franchises, cuts back on admin and under-performing initiatives [GI.biz]

During today's Q4 and full-year earnings call for Activision-Blizzard, it was announced that despite a "record year" of profit, the company would be reducing its headcount by a net total of 8% in 2019 - approximately 800 people based on the headcount as of last summer.

"Over the last few years, many of our non-development teams expanded to support various needs," the letter reads. "Currently staffing levels on some teams are out of proportion with our current release slate. This means we need to scale down some areas of our organization. I'm sorry to share that we will be parting ways with some of our colleagues in the U.S. today. In our regional offices, we anticipate similar evaluations, subject to local requirements."

CEO Bobby Kotick offered further context for the layoffs, saying that they were part of a larger plan to restructure the company and focus on core franchises while removing unnecessary spending in other areas.

The dramatic restructuring at the company somewhat flies in the face of Activision-Blizzard's record year and solid Q4.

[MartyG]

Highest ever profits. Lays off staff.

Once again proving that trickle down economics is a load of BS.

[Cassius_Smoke]

Gotta keep those dividends flowing!
I really don't know whats going on in the gaming industry at the moment, but it feels like Satan himself is running the show.
Hollywood doesn't even feel this greedy, unless they hide it better. It would appear as if they don't even care that we all know they're money grabbing gits.
It has all the hallmarks of an under regulated money train, like the banking industry in the 1980s. Dwarfs, strippers and buttered pigs running riot in the offices!