Tuesday , July 5 2022

Activision Blizzard Stock Falls Down to Diablo Drama at BlizzCon


During the weekend in BlizzCon, Blizzard announced the brand new Diablo for mobile devices, Diablo Immortal. The revelation met with a certain degree of resistance, as part of the fanbase hoped that instead of another Diablo core would be announced. On Monday, when the New York Stock Exchange opened for the first time this week, Activision Blizzard stocks fell dramatically.

The company's value declined by nearly 7 percent on Monday (via Sarah Needleman of WSJ). Shares closed at $ 64.34, down from a previous day to $ 68.99.

In a note to investors, Cowen & Company said: "Blizzard has seriously misinterpreted how their fans would react, suggesting they are not in contact with their players, perhaps they should be."

Blizzard has not yet announced whether Diablo Immortal will be a free or paid title, although Blizzard could develop a title with NetEase vet who could play for free. Cowen & Company said that no matter what model the business model uses, it can be difficult for the game to make money on the Western market, as the expectation of further payments is different than in other parts of the world, such as China. The report also mentioned that the game management system may be faint for the western audience, but it is totally normal in China.

The general sentiment stemming from BlizzCon, which surrounds Diablo Immortal, was negative, and theoretically it poses a problem with optics and probably explains why investors were terrible. The game is likely to create buckets of money, but the fall in stock prices suggests that the way games are presented and sent is more important than anyone could trust.

Cowen & Company mentioned that he had avoided Blizzard giving the players the impression he would change direction to focus on mobile games by offering nuclear fans teasing or seeing another core of the Diablo title. According to Kotak, Diablo 4 is under development and Blizzard recorded a video where co-founder Allen Adham talks about new Diablo projects. Whether this video is planned for BlizzCon, it's a question, but Blizzard said in his statement that "he has not issued any announcements since BlizzCon this year, or is planning further announcements."

About two weeks before BlizzCon stated that Blizzard had issued a statement that did not expect fans to expect no significant announcement of Diablo during the show.

Diablo Immortal major game designer Wyatt Cheng told GameSpot in BlizzCon that the skeptic is absolutely fair and reasonable, but hopes that people will remain open minded for Diablo Immortal.

"I think that in today's world, in our modern world, it makes sense to be a little skeptical," he said. "But then for the people who play it if they can go out and say:" No, no, no, really, guys, I was at BlizzCon, I was playing a demo. Let's hope the word comes from the mouth. "

Adham, co-founder of Blizzard, told Kotaku that the company expects a certain amount of reaction around Diablo Immortal, but not to the extent that it actually happened. If you do not know the name of Adhama, it could be because Blizzard left in 2004 and only returned in 2016. Another founder of Blizzard, Mike Morhaime, left the company in October.

GameSpot played Diablo Immortal on BlizzCon and you can read our initial impressions of mobile games here. The date of publication was not announced but Cowen & Company, in its announcement to investors, said it expects this title to be released in 2020.

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