Posts with tag Activision-Blizzard

Activision Blizzard head honcho Bobby Kotick was one of the highest-paid CEOs in America last year, Bloomberg reports. Earning $64.9 million -- $55.9 million in of it in stock which he'll vest over the next 5 years, so he isn't just pocketing all of it in cash -- puts Kotick behind Oracle's Larry Ellison, America's top-paid CEO, who earned $96.2 million in 2012. Looking to other game industry execs, Kotick's nearest comparison would be EA's former CEO John Riccitiello, who resigned in March, but made $9.5 million in 2012.

So why the pay raise, an eight-fold increase over Kotick's $8.33 million salary in 2011? It's part of Kotick's new employment contract, which included big bonuses tied to corporate performance. If Activision Blizzard continues to do well, Kotick will keep earning big dollars -- if he hits the highest performance targets, he could be making even more this year.

[Update: Clarified Kotick's stock vesting]

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"Revenues associated with the World of Warcraft franchise accounted for 61%, 90%, and 89% of Blizzard's net revenues for the years ended December 31, 2012, 2011, and 2010, respectively." (page 11)

According to The NPD Group, the top 10 titles accounted for 30% of the sales in the U.S. video game industry in 2012 as compared to 26% in 2011. Similarly, a significant portion of our revenues has historically been derived from video games based on a few popular franchises and these video games are responsible for a disproportionately high percentage of our profits. For example, our four largest franchises in 2012-Call of Duty, Diablo, Skylanders and World of Warcraft-accounted for approximately 83% of our net revenues, and a significantly higher percentage of our operating income, for the year (page 44)

During today's Activision Blizzard investor call, it was announced that during third quarter of calendar 2012, World of Warcraft claims over 10 million subscribers.

The given number is not as precise as we've grown accustomed to during these calls, but even the general number of 10 million gives us a good idea of the game's current climate. World of Warcraft subscriber numbers saw a dip to 9.1 million subscribers prior to the release of Mists of Pandaria, shedding 1.1 million subscribers in the pre-expansion lull.

Mists of Pandaria is still a fresh release as far as these investor calls are concerned, so its overall effect on World of Warcraft's playerbase will not become clear until 2013.

Edit: Correction made to account for the 1.1 million dip earlier this year.

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Bloomberg reports that Vivendi is looking to sell its 61 percent holding in Activision Blizzard, according to "a person with knowledge of the situation." If they are unable to find a purchaser for the entire $8.1 billion stake, they will attempt to sell part of it on the open market.

Again, this is just a rumor, but the CEO of the French Company just quit this week during a board meeting, reportedly due to a disagreement about selling off the huge telecommunication and media company's assets. The Wall Street Journal reports that "people familiar with the matter" claim that the board is considering splitting up Vivendi outright.

Until the rumor is confirmed and the success of the sale or spinoff is resolved, we will not know the fate of Blizzard or World of Warcraft. Those who say the sale of Blizzard to the merger of Blizzard and Activision brought down the quality of the game may laud the situation, while others will add this to the many reasons they claim that WoW is doomed. But speculation is just that, and we'll keep an eye out for actual facts as they happen.

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Blizzard announced today in the investors call that the World of Warcraft population remains stable at 10.2 million subscribers. This is after the announced dip to 10.2 million in February 2012.

Activision-Blizzard

Blizzard Entertainment's World of Warcraft® Remains #1 Subscription-Based MMORPG with Approximately 10.2 Million Subscribers as of 3/31/12

source

In other WoW news from the call, Blizzard has renewed its license with NetEase for China distribution: "On March 20, 2012, Blizzard Entertainment announced that they renewed their license with NetEase for the distribution of World of Warcraft in mainland China. The new license will continue for an additional three years following the expiration of the current license agreement."

There is no indication of specific North American / European numbers, nor is there any specific indication of when Mists will release.

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It's open warfare between Alliance and Horde in Mists of Pandaria, World of Warcraft's next expansion. Jump into five new levels with new talents and class mechanics, try the new monk class, and create a pandaren character to ally with either Horde or Alliance. Look for expansion basics in our Mists FAQ, or dig into our spring press event coverage for more details!

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During this afternoon's Activision Blizzard investor call, it was announced that WoW's subscribers numbers dropped another 100,000 players from September 2011 to 10.2 million at the end of December 2011.

World of Warcraft's subscriber numbers peaked around 12 million back in late 2010 and early 2011 and have been in decline since. The game slipped to 11.4 million subscribers in May 2011, then down to 10.3 million in September of 2011. While subscriber numbers continue to fall, the rate of lost subscriptions has slowed significantly.

In further clarification of the game's subscriber numbers, Blizzard President and Cofounder Mike Morhaime said that Blizzard has seen no significant change and that "December was a good month for us." This past quarter was, according to Morhaime, the "most competitive quarter ever." World of Warcraft's competition primarily came from Star Wars: The Old Republic.

Blizzard believes that the success of patch 4.3, community engagement, and the Annual Pass contributed to the subscriber retention it's seen.

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The latest Activision Blizzard earnings call took place earlier this afternoon, and it presented some interesting information about the current state of Blizzard and World of Warcraft. You can read the press release for yourself, but it doesn't include details of the call itself.

During the call, CEO of Blizzard Entertainment Mike Morhaime pointed out that World of Warcraft had fallen again to pre-Cataclysm subscriber levels -- 11.4 million subscribers at the end of March, down from its peak of 12 million. Subscriber levels do not decline linearly, he pointed out, stating that they fluctuate based on how quickly players consume and complete content. Players are consuming Cataclysm's content faster than any expansion before it, so subscriber levels started to drop off more quickly than they have previously.

Recently a few forum goers have posted that they've been in touch with Blizzard phone representatives and have heard from them that Blizzard employee's real-life names will actually not be appearing on the new Real ID forums.

So here's what we know:

• Bashiok / Drysc posted his real life name yesterday and had his privacy violated by people posting maps to his house, his parents' names and (potentially incorrect) cell phone numbers.
• We have seen multiple reports of WoW players who have called up Blizzard's support line and spoken with representatives who've told them blues will no longer be using their real names in the new forums.
• Josh, a Blizzard phone rep, said that Blizzard employees "cannot risk having their personal lives compromised by in-game issues."
• Blizzard blue representative Rygarius locked, but did not delete nor deny, a thread on this.
• WoW.com has emailed PR contacts within Blizzard for comment, and has not heard anything back.

So there you have it. It's a pretty solid rumor at this point. The known facts speak for themselves.

Update: Wryxian is referring people back to the original blue post language about the change. However, we're still hearing from phone bank representatives that Blizzard has changed its mind about blue posters.

Update #2: According to Nethaera, they're going to stick with their original plan and have blue posters use their real names. As to why other parts of Blizzard are saying something different (WoW.com has verified what other parts of Blizzard has said), it appears they're having some internal communication issues.

Blizzard has provided three updates to Real ID news that broke today. One of them we reported on earlier (the fact that our real life names will not be displayed retroactively). The other two are about parental controls and Blizzard's attentiveness to the response.

We provide all three responses after the break.

If you're interested in contributing to the discussion on Blizzard's forums, you may do so at the 11,000+ thread. Don't create a new thread though, it'll just be locked. And try not to fall into the trap of responding too harshly... Blizzard has been banning a lot of people today.

An article from the LA Times reports that Activision Blizzard Inc. has quietly made some internal changes to senior management and internal organization within Activision: one focused on the military game Call of Duty, another handling internally owned properties like Guitar Hero and the Tony Hawk series, and a third handling licensed properties.

Why these changes weren't relayed to investors or the press is still unknown, but it's likely due to the fact that they could be interpreted as a sign of weakness. Activision has seen flagging sales for two of its former cash-cow franchises, Tony Hawk and Guitar Hero, and a recent very public scuffle with Call of Duty creators Jason West and Vince Zampanella following their ejection from their positions as heads of Activision's Infinity Ward studio painted the studio in a negative light with gamers. This kind of restructuring could point to turmoil within the company, an image that an industry juggernaut like Activision would want to avoid.

So, what do these changes mean for Blizzard, and for World of Warcraft? Activision got a hold of us to say "nothing at all" -- the restructuring was for Activision's side of the business only. It's important to remember that Activision-Blizzard is an umbrella company that contains two separate divisions: Activision Publishing and Blizzard Entertainment. Activision restructured into three different units, but Blizzard remains independent.