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Vivendi cashes in post-Blizzard merger

First-half revs rise despite 22.7 percent games-division earnings drop; Lich King still coming in '08.

Vivendi Games and Activision shook the industry late last year when they announced plans to join forces to become the largest third-party publisher in the world, in a deal worth $18.9 billion. After a six-month period the union finally became official on July 9.

Following the merger, French media conglomerate Vivendi revealed yesterday that it is in rude health financially. According to the company's half-year earnings report, revenue for the first six months of 2008 is up 10.2 percent from the same period last year, from €10.223 million ($14.91 million) to €11.268 million ($16.44 million).

Despite the increase in group revenue, Vivendi's games division earnings were actually down from the same period in 2007, with EBITDA (earnings before interest, tax, and amortisation) dropping 22.7 percent to €92 million ($130 million)--partly due to World of Warcraft: The Burning Crusade launching during the same period last year. Vivendi also confirmed the next WOW expansion, Wrath of the Lich King, is on track for release later this year, despite widespread rumors of a delay until Q1 2009.

Chairman of Vivendi's management board Jean-Bernard Levy said in the statement, "Vivendi's performance during the second quarter 2008 reflects the quality and dynamism of our business units in a tighter economic environment...[including] the creation of Activision Blizzard, the global leader in video games publishing, in which Vivendi holds a 54 percent stake."

47 Comments

  • neonblueshadow

    Posted Sep 12, 2008 11:58 am GMT

    whats with this all this nonsense about "go blizzard". Blizzard is only one part of Vivendi games division, and this article is about Vivendi's performance as a whole, not Blizzard's. Also, open beta for any blizzard game at this point would be counter productive. more gamers would use the opportunity to play it as a game and not test it for flaws,and tell their friends how buggy it is, and since most of the gaming population is full of unthinking and unintelligent cases, the game will just end up suffering bad press through word of mouth rather than good marketing or bug fixing. ( before someone argues the point 'beta stage' by its definition means the software/game will be buggy...)

  • Daishomei

    Posted Sep 9, 2008 7:53 am GMT

    Go Blizzard, a great company, known for 3 great series such as Warcraft, Starcraft, and Diablo.

  • SpellbinderNV

    Posted Sep 5, 2008 11:53 am GMT

    I am playing on the Beta. What is my understanding is that the beta is 1-2 months behind the internal alpha. The patches come weekly and things are looking good despite a large amount of the post level 80 content that is missing (or just not enabled to beta yet). They have recently allowed character copies of PvP geared premades sporting level 80 arena gear (S5?). Also, blizz has announced that the 3.0 content patch will go live sometime Sept-Oct. I think a pre-Christmas release of WotLK is on track.

  • lannyboy334

    Posted Sep 4, 2008 9:44 pm GMT

    Haha public beta for WotLK would be freaking crazy, might as well be the actual release.

  • quickchord

    Posted Sep 4, 2008 9:41 am GMT

    I think people are losing sight on the difference of Devs and publishers.

  • Hekynn

    Posted Sep 3, 2008 4:57 pm GMT

    Not bad but ya Blizzard needs to do some open beta's on Diablo3 and Starcraft2

  • matty23211

    Posted Sep 3, 2008 3:26 pm GMT

    yay blizzard for owning all the other compianies. but if they do delay the realease wotlk i hope they open up a public beta atleast i mean geez

  • sirkel28

    Posted Sep 3, 2008 2:57 pm GMT

    It seems though at least EA has a new attitude as far as letting the devs do their job and staying out of it. They pretty much left Mythic alone on WarHammer, and let Mythic take back their original name of Mythic Entertainment instead of EA Mythic. That is a good thing, but mergers and buyouts are always a bad thing for the rest of us.

  • RitterXplode

    Posted Sep 3, 2008 2:54 pm GMT

    They're strong but they're following EA's path.

    And quasi-monopolies NO GOOD.

    dammit.

  • sonicwhip

    Posted Sep 3, 2008 1:48 pm GMT

    i think im gonna buy WOTLK the first day it comes out even though i dont even have BC and im just a lvl 8 newb..lol

  • Gooeykat

    Posted Sep 3, 2008 11:59 am GMT

    These scumbags are worse than EA.

  • Gemquist_HF

    Posted Sep 3, 2008 11:32 am GMT

    They are definitely not going to delay on wrath of the lich king's release...
    I have a feeling it is going to beat TBC's release sales easily. It's just the cash boost they're looking for to wrap up '08

  • kretyn

    Posted Sep 3, 2008 11:15 am GMT

    To hell with WoW and Vivendi.

  • nuclearbomb2000

    Posted Sep 3, 2008 10:23 am GMT

    bet they are gonna rush the release of the lich king

  • CommandZer01

    Posted Sep 3, 2008 7:55 am GMT

    sooner or later the whole gaming industry is just going to become one big monopoly since everyone is buying out everyone else. I miss old school gaming, and whatever happened to Wing Commander, Mech Warrior. Anyway, I think if vivendi is smart, they will keep everyone in blizzard in the company and let them do their own thing to bail them out of the debt.

  • division_9

    Posted Sep 3, 2008 2:50 am GMT

    The end of EA would be a dramatic historical event in gaming industry because so many franchises would just die. I can just imagine "Today EA has filed for bunkrupcy meaning the following games & franchises are officially cancelled.

    Sports

    NBA game series
    MLB game series
    NHL game series
    Madden series
    Fifa series

    Racing


    Nascar game series
    Burnout Series
    Need for speed series


    Action

    Medal of Honor series
    Command and Conquer series
    Godfather series
    Battlefield series"

  • ea_goodandy

    Posted Sep 2, 2008 9:06 pm GMT

    Sounds like a war. But that's fine. Wars usually introduce new and very useful technology. So hopefully we'll see a bunch of good games come out of this, instead of lazy developers.

  • PandaBear86

    Posted Sep 2, 2008 8:57 pm GMT

    One day it will just be EA vs Activision... all other publishers will either be acquaired or out of business. I miss all the old-school companies like Origin, Bullfrog, Acclaim, GT interactive, etc

  • Pete5506

    Posted Sep 2, 2008 8:09 pm GMT

    Don't worry blizzard is there

  • Ychi

    Posted Sep 2, 2008 7:08 pm GMT

    I agree. I fail to see the win for the customers here. Only making the fat cats more money and squeezing the blood out of any diversity in the market place. We have seen EA's handy work at driving their money machine all over the market, now these guys. Brilliant.

    Its like that scene in the Idiocracy movie "I like money" "Wow I like money too, we have a lot in common".

    I guess our only option for gaming evolution/revolution in development is direct to download demo's like the old days when ID first started.

  • Dirk13

    Posted Sep 2, 2008 6:56 pm GMT

    I dunno, without Blizzard (well as of many recent years just WOW) does Vivendi really honestly have a quality games division? isnt this why in spiteo f raking in all the profit (again, from WOW) that they are constantly incurring losses?

  • greedom

    Posted Sep 2, 2008 6:31 pm GMT

    It's not going to be too pleasant when it's down to two companies battling it out.

  • ctg867

    Posted Sep 2, 2008 6:22 pm GMT

    Well that's great. And while you cash in, gamers all get screwed because in Activision's greed and lazy publishing they let go more then a handful of games that could turn out to be great. I absolutely hate this merger, and wish it never happened.

    As long as EA doesn't screw us all by taking over Take-Two, then they're my new favorite mega company. Otherwise, I guess I'm settling for.... wait a second, who the hell else is there? Activision bought Vivendi. If EA buys Take-Two they're both out of the picture. Jeez, at this point it's either the first parties or it's the Japanese publishers, and I don't think anybody but Sony is particularly fantastic out of those groups.

  • ZOnikJJ

    Posted Sep 2, 2008 5:15 pm GMT

    Blizzard is a money tree!

  • themyth01

    Posted Sep 2, 2008 5:06 pm GMT

    Good thing they have Blizzard to bail them out now.

  • tupac-makaveli

    Posted Sep 2, 2008 4:21 pm GMT

    key word: "cash-in"
    ...bastards

  • invictuslemming

    Posted Sep 2, 2008 4:11 pm GMT

    I still have 3 friends who play WoW, they could care less about WAR it seems. Looks like there's more than enough of those people to go around that Blizzard won't have to worry about losing a large amount of its subscriber base.

    Sure they'll lose some, but they have more than enough to support the game, and if WAR does some how manage to screw up, the WotLK expansion will draw the defectors back again.

  • GrimGravy

    Posted Sep 2, 2008 2:48 pm GMT

    i am looking forward to WAR but i don't see my self on it to much when wrath comes out personally

  • Holdwick

    Posted Sep 2, 2008 2:39 pm GMT

    This is an EPIC merger! EA now has some monopoly competition!!! WHA HA HA HA!!!

    P.S. I hate big companies, they don't seem to have the same heart as the little ones!

  • muffinmanjedi

    Posted Sep 2, 2008 2:26 pm GMT

    Enough of when WoW is coming out, when is Diablo III coming out is the real question

  • Lach0121

    Posted Sep 2, 2008 2:15 pm GMT

    wow was not the first mmo, it was infact the mmo that brought mmo gaming to a mainstream....

  • halo2_addict

    Posted Sep 2, 2008 1:20 pm GMT

    What dozer said.

  • AncientDozer

    Posted Sep 2, 2008 1:16 pm GMT

    I agree to an extent, Virtua. There are a number of elements playing against it. First off, I suppose what you can call it is fanboyism although the word is far too potent and far too general For many WoW is their first and you can never forget your first. Also, it's easy to come out with the mistaken belief that WoW is the first MMO and that games like WAR are copying it (when in reality WoW took its best qualities from other MMO games like the Everquest Franchise and Star Wars online and that Warhammer Fantasy had that aesthetic and artistic design long before WoW). It won't be easy for them to admit that there might be something here in WAR when they've only had one experience which, as a whole, has been pretty pleasant.

    There are other misconceptions being perpetuated, too, which people need to get over for the betterment of this game. WAR is not a "hardcore" game. It is a game for "hardcore" and "casual" gamers alike to both enjoy. It is NOT a PvP game. It is an RvR game. The emphasis may be more on PvP but PvE also makes up a large part of RvR. There is plenty of PvE endgame content.

    Also, Dark Night, what you speak of isn't a strategy. They simply couldn't do it. Those classes were considered pretty bad by the designers and the testers and they just couldn't improve them by release which, by that time, had already been decided.

    But I don't see it as a major hinderance. They're striving for quality over quantity and I can get behind that.

  • Tremblay343

    Posted Sep 2, 2008 1:12 pm GMT

    Can't wait for WotLk.

  • buzzguy

    Posted Sep 2, 2008 1:07 pm GMT

    Man, what are they gonna do when WoW finally kicks the bucket?

  • yah00w360

    Posted Sep 2, 2008 12:51 pm GMT

    Wtf... theyre gonna delay it to Q1.. .Damn!

  • VirtuaCast

    Posted Sep 2, 2008 12:33 pm GMT

    I think WOW is the first casual MMORPG. I know thats not easy to say with monthly fee but they do have a lot of them. I don't think WAR will get the casuals or the numbers at first, it will take time. WAR certaily has potential though.

  • IDarkNight posted Sep 2, 2008 12:32 pm GMT (does not meet display criteria. sign in to show)

    IDarkNight

    Posted Sep 2, 2008 12:32 pm GMT (hide)

    The strategy of remove 4 classes in WAR is the worst strategy i have seen. 'Cause the people will wait for see it but when this classes arrive. The expansion of WoW will be here and the people will pass of WAR for play WoW.

  • bigelf72

    Posted Sep 2, 2008 10:44 am GMT

    With so many people leaving WAR:BETA already and reactivating their AOC accounts. AOC seems to be WOTLK's only competition, yet it doesn't even some close in players.

  • ColdfireTrilogy

    Posted Sep 2, 2008 9:38 am GMT

    Pieter, remember that lvling 1-60 was the same as doing 61-70 in terms of time. One new area ... A VERY BIG area with massive zones remember its not ONE zone. Professions arent that important nor ever were, they are just an addition. There is a TON of new content for WotLK

  • Pieter101

    Posted Sep 2, 2008 9:33 am GMT

    Wow is Nice But its a Pit Expensive
    Wotlk Is nice But Not manny new things
    1 more class
    1 more Place
    1 more Professional
    +10 lvl cap
    Wath will be the Nexst Expension Of Wow?

  • Kvain

    Posted Sep 2, 2008 7:50 am GMT

    Gotta agree with Draaagoon (nice vowel usage, btw) and Huffle. Although other MMOs will draw some player interest away from WoW, it won't be enough to make a difference--at least, not this time.

  • Draaagoon

    Posted Sep 2, 2008 5:41 am GMT

    I have to agree with Huffle on this one. Many people thought that AOC would draw many WOW subscribers but there is simply too many people playing WOW for AOC or WAR to make that much of a difference.

  • HufflePuff-TLH

    Posted Sep 2, 2008 5:20 am GMT

    I dont think that WAR will pull to many ppl away from WOW, with the expansion hitting lot's will try both and many stay.

  • Hettie13

    Posted Sep 2, 2008 5:14 am GMT

    Thats so many people..

  • bropie

    Posted Sep 2, 2008 4:35 am GMT

    Lets see how that number of subscribers is after the release of WAR

  • 02sfraser

    Posted Sep 2, 2008 4:27 am GMT

    its actually insane how many people play WoW. i seen a preview of the next expansion and to be honest its looking pretty good. and this is coming from someone who doesnt like WoW

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