Early evening yesterday, the Pomerantz Law Firm announced in a press statement published by PRNewswire (Archive: https://archive.fo/TdMQk) that the firm is opening up an investigation on Activision Blizzard on behalf of the company's investors. An investigation into "...whether Activision and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices."
Their statement adds, "On January 11, 2019, the Company [Activision Blizzard, Inc.] disclosed that it would be separating from its design and development partner Bungie, Inc. ("Bungie") and that Bungie will assume full publishing rights and responsibilities for the Destiny franchise. Bungie had developed the Destiny franchise with Activision as publisher. In the first five days of the Destiny franchise's release, it sold $325M at retail. Following this announcement, Activision's stock price fell sharply during intraday trading on January 11, 2019."
This announcement adds to the ever increasing list of issues the company faces. As the statement above points out, Bungie just announced that they're terminating their partnership with Activision Blizzard and assuming all publishing rights to Destiny from the as well.
Stock prices for the company have been continuing to tick down since the beginning of October 2018. Their latest addition to their Call of Duty franchise, Call of Duty: Black Ops 4, failed to impress investors during its October 2018 release. With the sales being "on par with last year's iteration" of the Call of Duty franchise according to investors.com.
Stocks fell yet again in November 2018 after fans of their Diablo franchise were infuriated by the announcement at BlizzCon that the next installment would only be released to mobile devices. Which after being asked whether there where "...any plans to make this playable on PC," Blizzard's Principal Game Designer Wyatt Cheng ended up asking "Do you guys not have phones?" to an auditorium full of booing fans.
Also adding to Activision Blizzard's list of issues, news of a federal complaint filed against the company surfaced this week by a former employee claiming to have undergone racial abuse and discrimination while on the job. In a statement released early this week entitled Real Reason why I left Blizzard Entertainment: Racial Abuse and Discrimination (Archive: https://archive.fo/XJeQJ), Julian Murillo detailed the alleged abuse while working in Blizzard's Hearthstone Esports Team and the Hearthstone Championship Tour. Beginning snippet of the statement reads,
Julian claims later in the statement that he decide to publicly talk about the alleged abuse after it was announcement that the Soldier 76 character in Blizzard's first-person shooter Overwatch was gay.
The future of Activision Blizzard, Inc. is uncertain especially with the investigation by the Pomerantz Law Firm and unpleased investors. A request for comment was sent to the law firm, however they have not responded back by time of publishing.Copyright © 2019 Fotisi. All Rights Reserved.