Activision Loses $1.5 billion market cap b/c of Destiny

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Nengo_Flow

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#52  Edited By Nengo_Flow
Member since 2011 • 10644 Posts

@charizard1605 said:

@Nengo_Flow said:

@ghostwarrior786 said:

hopefully the next cod game suffers as a result

doubtful... all Activision has to do is say "Hey M$ we got this thing for the new COD..."

M$ - "Whatever it is, well pay you $50 million for it to be time exclusive on XBOX."

Activision can always squeeze out money from M$.

And lets not forget that M$ will most likely pay again, to have the next Titanfall as an XBOX exclusive.

Titanfall has nothing to do with Activision :/

Its an example of how a company with a game can get a substantial amount of money in advance from M$ cuz M$ practice of buying exclusive.

I mean, Kojima or Ken Levine could do the same for what ever game he does next. Kojima can go to M$ and they'll gladly fork over a hefty amount of money in advance just to secure some type of exclusive whatever if they cant just get the whole game exclusively.

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gamecubepad

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#53  Edited By gamecubepad
Member since 2003 • 7214 Posts

They need an acti humble bundle asap and kick starter for new games.

Dead serious.

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FoxbatAlpha

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#54 FoxbatAlpha
Member since 2009 • 10669 Posts

So a few companies gambled and lost. I hate when I gamble in my pants and lose.

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R3FURBISHED

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#55 R3FURBISHED
Member since 2008 • 12408 Posts

@Evo_nine said:

Serves them right for hyping $500m in sales that they didn't actually achieve.

Biggest ever IP launch my arse.

Activision Blizzard did sell $500 million worth of the Destiny to retailers, thus Activision Blizzard made $500 million (the largest launch ever for a new IP).

Oh, and remember people that Destiny didn't cost $500 to make. Important tidbit.

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R3FURBISHED

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#56 R3FURBISHED
Member since 2008 • 12408 Posts

@bunchanumbers said:

I'm glad its failing. The AAA model isn't self sustainable without massive sales to back up all the advertising involved. There's probably more spent on trying to build a hype train than to develop it. Its bad business and the games should be able to speak for themselves.

This kind of banter doesn't make any sense to me. If the AAA model dwindles we'll be left with nothing more than indies with yearly Call of Duty and Madden and the tri-yearly Grand Theft Auto.

I'm curious, what would be a good solution in your opinion?

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KungfuKitten

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#57  Edited By KungfuKitten
Member since 2006 • 27389 Posts

@R3FURBISHED said:

@Evo_nine said:

Serves them right for hyping $500m in sales that they didn't actually achieve.

Biggest ever IP launch my arse.

Activision Blizzard did sell $500 million worth of the Destiny to retailers, thus Activision Blizzard made $500 million (the largest launch ever for a new IP).

Oh, and remember people that Destiny didn't cost $500 to make. Important tidbit.

It cost them more didn't it? They say it's the most expensive game made. And I thought retailers can return part of it if it won't sell?

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Mr_Huggles_dog

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#58  Edited By Mr_Huggles_dog
Member since 2014 • 7805 Posts

It's their own fault.

I seriously doubt Bungie needed $500 million for everything regarding Destiny. It's a good game and has sold well, but when you're in the hole $500,000,000....you're gonna have to really move some software.

I dunno if Bungie said "Hey we need this much!!!" but they should have been smart enough to say "The cost has tallied up to $300,000,000 and thats where we draw the line."

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Senor_Kami

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#59 Senor_Kami
Member since 2008 • 8529 Posts

Meh, it's stock. Stock is people who don't know what's happening and what's planned gambling on what they think will happen in the future or blindly reacting to the present. Call me when you can pull up financial documents where the company is actually losing money.

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Shewgenja

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#60 Shewgenja
Member since 2009 • 21456 Posts

Heh, after this month's NPD software sales report, shit will be different. Market psychology is fickle as all ****.

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Heil68

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#61  Edited By Heil68
Member since 2004 • 60681 Posts

@lostrib said:

...and then COD releases and it's back up to normal

Yup..lol

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deactivated-5d6bb9cb2ee20

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#62 deactivated-5d6bb9cb2ee20
Member since 2006 • 82724 Posts

@Shewgenja said:

Heh, after this month's NPD software sales report, shit will be different. Market psychology is fickle as all ****.

Which is a shame that such a mediocre game might actually end up selling.

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humanistpotato

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#63 humanistpotato
Member since 2013 • 555 Posts

too high budget yes but marketing wasnt just for one game, they tried to create a AAAA (budget) franchise. So marketing expenses werent ridicilous imo. If this game got 85+ metacritic, activision would make A LOT of profit from upcoming games including destiny in their name

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parkurtommo

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#64 parkurtommo
Member since 2009 • 28295 Posts

@GhoX said:

I hope this rings a strong enough warning bell for the entire industry, so that they may rethink their ways of excessive marketing & hype while leaving the game's actual quality in tatters.

It's not the quality that's in question, it's purely the hype. The hype that Destiny got was really the main reason why it got the reviews it got.

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AM-Gamer

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#65  Edited By AM-Gamer
Member since 2012 • 8116 Posts

I've enjoyed it, it does alot of things well but it's mission structure is terribly repetitive. The ending was half assed to. I'd give it a 7.5 or 8.

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R3FURBISHED

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#66 R3FURBISHED
Member since 2008 • 12408 Posts

@KungfuKitten said:

@R3FURBISHED said:

@Evo_nine said:

Serves them right for hyping $500m in sales that they didn't actually achieve.

Biggest ever IP launch my arse.

Activision Blizzard did sell $500 million worth of the Destiny to retailers, thus Activision Blizzard made $500 million (the largest launch ever for a new IP).

Oh, and remember people that Destiny didn't cost $500 to make. Important tidbit.

It cost them more didn't it? They say it's the most expensive game made. And I thought retailers can return part of it if it won't sell?

“We’re pouring everything it takes into Destiny to ensure it meets our fans' expectations, and our own,” Osborne added. “Activision is, too. But the budget for Destiny, including associated marketing costs and pizza Wednesdays, is nowhere near 500 million dollars.”

http://www.gamespot.com/articles/destiny-budget-nowhere-near-500-million-bungie-says/1100-6420802/

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RoboCopISJesus

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#67 RoboCopISJesus
Member since 2004 • 2225 Posts

@speak_low said:

investing their faith in an multi-year, open world MMO that's an FPS)

Planetside2 is a mmofps. Destiny isn't.

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jsmoke03

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#68 jsmoke03
Member since 2004 • 13717 Posts

@charizard1605 said:

@Thunderdrone said:

@charizard1605 said:

On September 9th, Destiny launched bringing the valuation of Activision Blizzard's stock, ATVI, to 23.73$ at its closing, close to an All-time high of 24.18$.

The past few days however, it seems investors are singing a different tune due to Destiny lukewarm reviews and disappointing sell-through - over 500 million $ worth of shipments were sent out to retailers - nonetheless only 325 million $ sold-through thus far effectively leaving 175 million $ worth of inventory on store shelves.

Only 325 million?! Holy crap everyone else would kill for a third of that. And 175 million worth of inventory means shit when many are holding back till the holiday season at this point.

Everything needs to be viewed in context, especially this game. Activision shipped out $500 million worth of inventory, after spending $500 million on this game. They made only $325 million in revenue, which is not only 65% of what they had expected, but also not the final sum that they get to keep, considering that revenue has to be split with all parties involved in the process. In fact, there is right now a very real possibility that this game doesn't make a return on investment for Activision. Which is sort of shocking, but also something I began to suspect once I realized Activision hasn't actually shared the sales numbers with us even once yet.

context is that $325 mil in less than a week with holidays coming up. people are panicking based on one weeks sale? those investors need to at least ride it through the holiday. Highest selling new ip scores $325mil and is viewed as a disappointment? what!?!?! its like tomb raider selling 5 million copies and underperforming...

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Thunderdrone

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#69 Thunderdrone
Member since 2009 • 7154 Posts

This game is gonna make a lot of money, move a lot of units and will keep on selling as new content is added and Activision makes sure people are aware of the support it will continuously be having in the long run.

This is Diablo 3 all over again, with gamers taking the piss at vanilla D3 and calling it a failure only to come back in droves as the expansions and tweaks deliver on what they originally wanted.

If this is a failure then gaming as a high production entertainment business might as well close up shop.

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SoftwareGeek

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#70 SoftwareGeek
Member since 2014 • 573 Posts

@CroidX said:

That what happens when you make a mediocre game

yup.

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PapaTrop

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#71 PapaTrop
Member since 2014 • 1792 Posts

Biggest launch of the new gen.

Sad that this is what consoles are about nowadays, but it won't change anytime soon. People are too easily bought through advertising and hype nowadays. It doesn't matter what market.

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PurpleMan5000

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#72 PurpleMan5000
Member since 2011 • 10531 Posts

The traditional AAA model really needs to crash at this point. The sooner it happens, the less painful it will be.

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StormyJoe

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#73 StormyJoe
Member since 2011 • 7806 Posts

@charizard1605: Wow.

I actually created a post about Destiny possibly having a poor sell-through because of the reviews. I was hoping I was wrong...

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Bread_or_Decide

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#74  Edited By Bread_or_Decide
Member since 2007 • 29761 Posts

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Bread_or_Decide

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#75  Edited By Bread_or_Decide
Member since 2007 • 29761 Posts

Sonmi-451: That AAA game model... must be destroyed.

Hae-Joo Chang: Yes.

Sonmi-451: The systems that built Destiny must be turned down.

Hae-Joo Chang: Yes.

Sonmi-451: No matter if we're 60fps or 1080p, we are all gamers.

Hae-Joo Chang: Yes.

Sonmi-451: We must all fight and, if necessary, ruin Bungie and Activision to teach people the truth.

Hae-Joo Chang: This is what we have been waiting for.

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I_Return

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#76 I_Return
Member since 2014 • 873 Posts

LOL charizard thread

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SambaLele

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#77  Edited By SambaLele
Member since 2004 • 5552 Posts

This is an honest question: why did they invest so much in this game and where did that money go? There are plenty of games that haven't such a high budget that have great gameplay, graphics, story, soundtrack, etc. Is there a chance they overspend on advertising and marketing, going further than what would be an optimum point? If not, then what explains that?

Depending on the answer I think hype actually hurt in this one ocasion. If they had spent less, and hyped the game less, it'd be a lucrative product. There's a reason we say in my country that satisfaction = delivered quality/expectation (or hype).

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ReadingRainbow4

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#78 ReadingRainbow4
Member since 2012 • 18733 Posts

It's about time.

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TigerSuperman

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#79  Edited By TigerSuperman
Member since 2013 • 4331 Posts

@Shewgenja: NPD won't make their money back. investors most likely already know the sales.

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Bread_or_Decide

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#80 Bread_or_Decide
Member since 2007 • 29761 Posts

@SambaLele said:

This is an honest question: why did they invest so much in this game and where did that money go? There are plenty of games that haven't such a high budget that have great gameplay, graphics, story, soundtrack, etc. Is there a chance they overspend on advertising and marketing, going further than what would be an optimum point? If not, then what explains that?

Depending on the answer I think hype actually hurt in this one ocasion. If they had spent less, and hyped the game less, it'd be a lucrative product. There's a reason we say in my country that satisfaction = delivered quality/expectation (or hype).

ALL THAT MONEY and you can't even fly your ship to the planet on your own. Load screen, load screen, load screen. Little touches like this would have made DESTINY feel way more epic. Instead you're just picking the planet, LOAD, then drop down then leave, LOAD.

Oh look there's my ship...damn wish I could actually fly the damn thing.

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kuu2

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#81 kuu2
Member since 2005 • 12056 Posts

There is nothing wrong with AAA games, there is a problem with making AAA crap games which Mediocrity is.

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leandrro

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#83 leandrro
Member since 2007 • 1644 Posts

@charizard1605 said:

On September 9th, Destiny launched bringing the valuation of Activision Blizzard's stock, ATVI, to 23.73$ at its closing, close to an All-time high of 24.18$.

The past few days however, it seems investors are singing a different tune due to Destiny lukewarm reviews and disappointing sell-through - over 500 million $ worth of shipments were sent out to retailers - nonetheless only 325 million $ sold-through thus far effectively leaving 175 million $ worth of inventory on store shelves.

As such, ever since the launch of Destiny, the stock has now rapidly declined, losing over 10% of its valuation to where it stands currently 21.60$ ish - 1.5 billion $ erased from ATVI's market cap in just a few days.

Thanks to NeoGAF for collating this information.

Bad reviews and lower than expected sales due to bad word of mouth have caused an immense, real loss to Bungie (over $2.5 million in expected bonuses), and Activision a staggering $1.5 billion in market cap.

It's a warning, if there ever was one, that the traditional AAA model may be on the verge of collapsing.

activision thought it had gamers on their hands with past gen visuals in a nerdy fps game lol

gamers still want next gen visuals and immersive realistic fps games (like what battlefield should be)

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leandrro

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#84 leandrro
Member since 2007 • 1644 Posts

@bunchanumbers said:

I'm glad its failing. The AAA model isn't self sustainable without massive sales to back up all the advertising involved. There's probably more spent on trying to build a hype train than to develop it. Its bad business and the games should be able to speak for themselves.

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Shewgenja

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#85 Shewgenja
Member since 2009 • 21456 Posts

@TigerSuperman said:

@Shewgenja: NPD won't make their money back. investors most likely already know the sales.

Assuming investors use any wisdom at all. This is a bunch of people who don't know anything about gaming using a tenuous rating system to make a knee-jerk reaction. I'm not trying to say everything is fine in Destiny Land, but the evidence suggests that this is an over-sell.

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dakan45

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#86 dakan45
Member since 2009 • 18819 Posts

Wait so you telling me activision stock is bigger than sony?

lol

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carljohnson3456

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#87 carljohnson3456
Member since 2007 • 12489 Posts

Game is good. Solid shooter. Had this game been made by an unknown publisher everyone would be praising how underrated it is. But because it was made by the creators of Halo.... it gets hate for not being Halo.

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hatecalledlove

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#88  Edited By hatecalledlove
Member since 2004 • 1383 Posts

The destiny game itself didn't cost 500 million, the whole series plus marketing will cost 500 million. 10 years of staggered releases with expansion packs, comets and direct sequels that tie into an overall arc. Activision and Destiny have already made money off this game at this point. So the rest of the above will release as scheduled.

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santoron

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#89 santoron
Member since 2006 • 8584 Posts

Kudos to those SWers rightfully pointing out that almost nothing about Destiny is reflective of the "traditional AAA model."