Jump to content
FORUMS
Stan

Activision Blizzard Q2 2019 Earnings Call

Recommended Posts

43256-activision-blizzard-q1-2019-earnin

The Q2 2019 Earnings Call was held on August 8 and Blizzard remains at 32 million monthly active users (MAUs). WoW subscribers increased since mid-May, following the release of WoW Classic Beta and Rise of Azshara.

Q2 2019 Earnings Call Highlights

  • Hearthstone MAUs increased Q/Q following the release of the Rise of Shadows expansion and deeper, more engaging new single-player content in the quarter.
  • Overwatch MAUs were relatively stable Q/Q, with engagement increasing following the release of the Workshop.
  • World of Warcraft® subscribers increased since mid-May, following the release date announcement and beta for World of Warcraft Classic and the Rise of Azshara update.
  • At Blizzard, daily time spent per player increased Y/Y.
  • Overwatch League hours viewed continued to grow Y/Y in the two stages held during Q2. Season to date, viewership and average minute audience have grown double digits Y/Y.
  • Activision Blizzard delivered approximately $800M of in-game net bookings in Q2.
  • Revenues and operating income are down Y/Y, reflecting lower in-game revenues.
  • Operating margin fell Y/Y, with the revenue decline partially offset by lower costs.
  • They continue expanding their development teams and resources to accelerate the delivery of content in their pipeline, pursue business models, etc.

Slide Presentation

Q2 2019 ATVI Slides vF-page-001.jpgQ2 2019 ATVI Slides vF-page-002.jpgQ2 2019 ATVI Slides vF-page-003.jpgQ2 2019 ATVI Slides vF-page-004.jpgQ2 2019 ATVI Slides vF-page-005.jpgQ2 2019 ATVI Slides vF-page-006.jpgQ2 2019 ATVI Slides vF-page-007.jpgQ2 2019 ATVI Slides vF-page-008.jpgQ2 2019 ATVI Slides vF-page-009.jpgQ2 2019 ATVI Slides vF-page-010.jpgQ2 2019 ATVI Slides vF-page-011.jpgQ2 2019 ATVI Slides vF-page-012.jpgQ2 2019 ATVI Slides vF-page-013.jpg

(Source)

    Share this post


    Link to post
    Share on other sites

    If I am not mistaken they didn't include Starcraft on the "games we are currently working on" list. Heroes of the Storm I was expecting, but Starcraft? It would be a shame if we didn't get any more work done with the franchise. I guess RTSs are too hard to monetize.

    • Sad 1

    Share this post


    Link to post
    Share on other sites
    1 hour ago, lChronosl said:

    If I am not mistaken they didn't include Starcraft on the "games we are currently working on" list. Heroes of the Storm I was expecting, but Starcraft? It would be a shame if we didn't get any more work done with the franchise. I guess RTSs are too hard to monetize.

    Yeah, seems there are now no plans for another Starcraft. They can still provide balance patches, these war chests for supporting e-sports prize pool and maybe a co-op commander (although it looks like there is now one per year, also they're running out of characters). HotS has been missing from their financial reports for a while. It's hard to get stable casual audience for RTS like SC2, as it is too fast and one mistake can often decide between victory and defeat. 

    Edited by Arcling
    • Sad 1

    Share this post


    Link to post
    Share on other sites
    5 hours ago, lChronosl said:

    If I am not mistaken they didn't include Starcraft on the "games we are currently working on" list. Heroes of the Storm I was expecting, but Starcraft? It would be a shame if we didn't get any more work done with the franchise. I guess RTSs are too hard to monetize.

    Sadly, RTS is in significant decline. A 4x would probably be more of whats in store for the future of SC (Especially considering how all the commanders play, allows for quite a bit of faction filling for a 4x)

    • Like 1

    Share this post


    Link to post
    Share on other sites
    On 8/10/2019 at 5:28 PM, Frogspoison said:

    Sadly, RTS is in significant decline. A 4x would probably be more of whats in store for the future of SC (Especially considering how all the commanders play, allows for quite a bit of faction filling for a 4x)

    "RTS is in decline" really sounds to me like "Horror games are dead" did back in the early 2010s. They're in decline because there hasn't been a major, big-budget RTS release since... what, grey goo? Planetary Annihilation? Do either of those count? I don't think they meet the 'big budget' standard that Starcraft 2 did. Command and conquer rivals could be argued, but I'm not even sure I'd lump that in with traditional RTS games. The mere fact that SC 2 is still king of the RTS is partially because it's so good and so pro-oriented, and partially because no one has even tried for the throne.

    Share this post


    Link to post
    Share on other sites
    On 8/12/2019 at 3:44 PM, LostDeep said:

    "RTS is in decline" really sounds to me like "Horror games are dead" did back in the early 2010s. They're in decline because there hasn't been a major, big-budget RTS release since... what, grey goo? Planetary Annihilation? Do either of those count? I don't think they meet the 'big budget' standard that Starcraft 2 did. Command and conquer rivals could be argued, but I'm not even sure I'd lump that in with traditional RTS games. The mere fact that SC 2 is still king of the RTS is partially because it's so good and so pro-oriented, and partially because no one has even tried for the throne.

    The problem with real-time strategy is that because it's real time, you never have the time to properly think through your decisions, or else you'll fall behind on your macro-management. You never get a chance to take a step back and assess the situation, which turns off a lot of people who enjoy strategy games. Meanwhile, there's so much multitasking to do and so much information to keep track of that your traditional fast-reflex FPS fans (i.e. the types of people who play CS:GO and Overwatch) are turned off as well.

     

    From my point of view, an RTS like Starcraft is kinda the worst of both worlds between action games and strategy games; too much information to keep track of, not enough time to process any of it. I think it'll always be a niche genre, especially in multiplayer.

    Share this post


    Link to post
    Share on other sites
    On 8/13/2019 at 5:06 PM, Monlyth said:

    The problem with real-time strategy is that because it's real time, you never have the time to properly think through your decisions, or else you'll fall behind on your macro-management. You never get a chance to take a step back and assess the situation, which turns off a lot of people who enjoy strategy games. Meanwhile, there's so much multitasking to do and so much information to keep track of that your traditional fast-reflex FPS fans (i.e. the types of people who play CS:GO and Overwatch) are turned off as well.

     

    From my point of view, an RTS like Starcraft is kinda the worst of both worlds between action games and strategy games; too much information to keep track of, not enough time to process any of it. I think it'll always be a niche genre, especially in multiplayer.

    I can see that, but it's still not as if anyone's really taken big swings at the genre. It's got flaws, by all means, but it still has an appeal and there hasn't been many people trying. I'm hopeful for the upcoming Iron Harvest, though as a Kickstarter game that's very much on a dangerous edge. I do think the 'golden age' for multiplayer RTS is done, but there's still plenty of market for single-player experiences. Market that's surprisingly untapped at times, with everyone and their dog trying to make Battle Royale or E-Sports games.

    Share this post


    Link to post
    Share on other sites
    9 hours ago, LostDeep said:

    I can see that, but it's still not as if anyone's really taken big swings at the genre. It's got flaws, by all means, but it still has an appeal and there hasn't been many people trying. I'm hopeful for the upcoming Iron Harvest, though as a Kickstarter game that's very much on a dangerous edge. I do think the 'golden age' for multiplayer RTS is done, but there's still plenty of market for single-player experiences. Market that's surprisingly untapped at times, with everyone and their dog trying to make Battle Royale or E-Sports games.

    I think that if Real-time strategy is going to make a comeback, it needs to get out of the shadow of Starcraft. It's a great series, to be sure, but the formula still has a lot of room for improvement. Like the multitasking; when there's so much multitasking that even the best players in the world frequently struggle to keep up with everything, there's a serious problem. Real-time strategy should acknowledge the limits of the human body, and the human brain.

    And I think real-time strategy needs to emphasize the strategy part of it more.  I think there needs to be more emphasis on out-thinking your opponent, instead of just having a better APM and by extension, better macro and better micro. If my chosen strategy is a great counter to my opponent's strat and I can predict almost every move he makes, but he can still easily beat me with "brute force" by just building more stuff than me or running circles around me with micro-heavy units, I think that's a little problematic.

    Specifically, I'd like to see an RTS that also puts emphasis on pre-battle preparations, like the SC2 campaign. Choosing upgrades for your units before the battle starts. I think that'd make an interesting game, if difficult to balance.

    Edited by Monlyth
    • Like 1

    Share this post


    Link to post
    Share on other sites

    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Reply to this topic...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

    Loading...

    • Recently Browsing   0 members

      No registered users viewing this page.

    • Similar Content

      • By Stan
        From November 26 through December 2, you can save up to 50% on Blizzard and Activision digital games and bundles, including the Virtual Ticket which comes with in-game rewards and is still available for purchase.
        Blizzard (Source)
        Black Friday is on the horizon, and that means discounts to help kickstart your holiday shopping! At the Blizzard Shop, we’re offering up to 50% off Blizzard and Activision digital games, bundles, upgrades, and more. The Blizzard Gear Store is also getting into the holiday spirit, with sales taking place on Black Friday, Cyber Monday, and through until the end of the year.
        Whether you’re getting into the season of giving for your friends and family—or simply want to treat yourself to something fun—you won’t want to miss out on these deals.
        Blizzard Shop Black Friday Sale
        From November 26 through December 2, treat yourself to something new from World of Warcraft®, Overwatch®, StarCraft®, Hearthstone®, Diablo® III, Heroes of the Storm® or Call of Duty®.
        World of Warcraft®
        Get 50% off the following for adventurers of all kinds:
        Battle for Azeroth® (Standard Edition, Digital Deluxe Edition, or Digital Deluxe Upgrade) Battle for Azeroth Digital Deluxe Items Legion® Digital Deluxe Items Warlords of Draenor® Digital Deluxe Items New to World of Warcraft?* As an extra bonus, from now through January 6, 2020, new players can save 50% on the first month of a new World of Warcraft subscription. A subscription includes access to both World of Warcraft and World of Warcraft Classic.
        To check these out, head over to the Blizzard Shop—and if you’re buying for a friend or loved one, consider pairing it with the Recruit A Friend program!

        * Subscription to World of Warcraft does not include the most recent playable expansion, which is sold separately.
        Overwatch®
        The world could always use more heroes, and those heroes might as well be your mates!
        Overwatch Standard Edition (PC only): 25% off Overwatch Legendary Edition (PC only): 50% off If you haven’t yet begun your watch, we’ll be running a Free Trial between November 26 and December 4, available on PC, PlayStation® 4 and Xbox One®. To learn how to jump in, head to tryoverwatch.com.
        StarCraft®
        Save up to 50% on a wide variety of StarCraft II campaigns and announcers—check out the Blizzard Shop to see all of the options on sale.
        StarCraft: Remastered is also getting the Black Friday treatment, with 50% off the game, 40% off the StarCraft: Remastered and StarCraft: Cartooned bundle, 25% off the Cartooned upgrade, and up to 30% off announcers.
        Hearthstone®
        Don’t miss your chance to play as more of your favorite Hearthstone Heroes and dominate in style. Through December 9, seize your chance to add Magni, Alleria, and Medivh to your collection for just $6.99 each!
        Complete with epic emotes, voice lines, special entrance and Hero Power animations, and their own card back, recruit these champions of Azeroth before they rotate out of the shop at the end of this offer.  
        Diablo® III
        The price of becoming a demon-slayer has been temporarily slashed at the Blizzard Shop.
        Diablo III: Up to 50% off Reaper of Souls™: Up to 50% off Battle Chest: Up to 33% off Rise of the Necromancer™: Up to 33% off Eternal Collection: Up to 25% off Heroes of the Storm™
        Join the legendary heroes and villains of the Nexus and get ready for Deathwing to warm you up this holiday season!
        Welcome to the Nexus Bundle: Up to 30% off Heroic Reinforcements Bundle: Up to 30% off 360-day Stim Pack: 33% off (available in-game only) Call of Duty®
        Answer the call with the following sales:
        Modern Warfare Standard Edition: 17% off* Modern Warfare Operator Edition: 20% off Modern Warfare Operator Enhanced Edition: 20% off Black Ops 4: 60% off Black Ops 4 Digital Deluxe: 50% off Black Ops 4 Battle Edition: 50% off Black Ops 4 Black Ops Pass: 60% off * Sale on Modern Warfare Standard Edition runs from November 27, 4pm PST to December 3, 10am PST.
        Blizzard Gear Store
        From now until the end of the year, Fanatics will be offering a range of holiday savings. Look out for up to 25% off individual items, up to 30% off your overall order, and more! Check out the Blizzard Gear Store, load up your cart, and check back throughout the holiday sale period to see how you can save! (Product exclusions apply.)
        BlizzCon 2019 Virtual Ticket
        If you missed out on the panels, Q&As and entertainment from BlizzCon this year, never fear! For a limited time, the BlizzCon 2019 Virtual Ticket will be on sale for a special promotional price, granting access to all Virtual Ticket content, the in-game digital extras, and access to the Warcraft III: Reforged beta. Head to the Virtual Ticket page to purchase!
      • By Starym
        We have some fun Diablo stuff today, with two videos showcasing the amazing work the community has been doing, in part hyped up by the Diablo 4 announcement. We have the third old-school cinematic improved through machine learning AI, with the Diablo 2 intro getting the treatment by youtube channel Upscale!
        And then we have some more creative work, with RandomPolishGuy putting in a lot of effort and making his own lore video in the style of the Diablo 3 animated cutscenes, featuring Inarius, Lilith and the creation of Sanctuary:
        Source: r/diablo.
      • By Stan
        Inven Global talked to a former Blizzard employee about HGC's cancellation and the game in general.
        Before the Storm
        Whereas other franchises have big patches once every three months, the Heroes dev team was constantly working overtime to put up with Hero releases, events, balance updates, and pretty much everything.
        Former Blizzard employees said there was a disconnect between departments; the esports departments knew something was going on with HGC, but they didn't tell anyone about it.
        Members of the public relations department weren't able to communicate effectively with players and organizations, because they themselves weren't told anything.
        Another source said they thought we'd see at least one more year of HGC.
        The Death Sentence for Competitive HotS
        Unbeknownst to many Blizzard employees and the community, J. Allen Brack and Ray Gresko came with a statement on HGC's cancellation and the future of the game in December 2018.
        Apparently, Blizzard employees learned about the cuts to the game and esports scene via email at the same time as the rest of the world, shortly before the blog post went live.
        Unsustainable Workload
        Prior to the the announcement, the Heroes dev team was one of the largest on campus. With community wanting more content to prevent the game from becoming stale, the developers were often pushed to their limits, which is why some were slightly relieved when they learned about the future of the game.
        Diablo: Immortal and Diablo IV Development
        Following the not so successful announcement of Diablo: Immortal at last year's BlizzCon, the developers at the company felt the urge to make things right and they simply had to reveal Diablo IV at this year's BlizzCon, so they ramped up the production of the game, grabbing the resources from the Heroes of the Storm team.
        Check out the full post on Inven Global article for more information!
      • By Starym
        While we all expected the Diablo 2 remaster to be announced at this year's BlizzCon and some rumors even pointed to it, it seems we may not ever get the updated version of the game. According to Erich and Max Schaefer, two of the original creators of both Diablo 1 and 2, the remaster is very unlikely, as a little while before launch of D2, the entire backup of the source code and assets was lost.
        Talking at ExileCon 2019, the series creators were reminiscing about the beginnings of the franchise (and genre), and this particular story stood out:
        This isn't the first time Blizzard has had troubles with the source code of their games, as Classic WoW is also not based on the full Vanilla code, as parts of it were lost over the years and the update process with new expansions.
        This all comes from a Gamespot article covering the talks at ExileCon and also features a great story about the original Diablo's creation, before Blizzard bought Condor, the original developers, and how they were completely broke and wouldn't have been able to ship the game (and might have even gone to jail for tax evasion) if Blizzard hadn't shown up with their offer. Also, they were only expecting around 20,000 copies to be sold for the game to be a success and fund a sequel, which really gives you some perspective as to how things have changed, with Diablo 3 having sold over 30 million copies, and D2 clocking in at around 17 million.
        In any case, you should definitely head on over to Gamespot and read the full article with many more quotes from the fathers of the Diablo franchise.
      • By Starym
        We have modernized blast from the past, courtesy of the Upscale youtube channel, as they've taken the first Diablo 2 trailer and the intro cinematic from Lord of Destruction and, as their name suggests, recently upscaled them!
        First off it's a slightly less familiar E3 teaser for Diablo 2 from 1998, enhanced to 4K!
        And then it's on to one that we've all seen, from the Lord of Destruction expansion, and it seems Bhaal got a better deal, as he got remastered to 8k!
        While the cinematics still look dated, they look a hell of a lot better than the originals, as you can see in the side-by-side comparisons. You should check out the channel, as they also did some work on the Diablo 4 intro cinematic, as well as a whole lot of other games.
        And here's the original D2 intro cinematic, upscaled with machine learning earlier this year as a bonus in case you missed it.
    ×
    ×
    • Create New...