Activision Blizzard starts massive layoffs after strongest year.

[Stumplicker]

Like the title says, Activision/Blizzard just posted record revenues and decided to start massive layoffs. Remember when they could do no wrong? Those were the days.

https://kotaku.com/activision-blizzard-begins-massive-layoffs-1832571288

https://www.cnet.com/news/activision-blizzard-begins-employee-layoffs-after-best-year-in-company-history/?fbclid=IwAR24yayf6zDUPoPn1KDCgi69UamfnuoqMvaAl22I-5Y30Ae2kYcfeV8ZB5U

Can't they just get new jobs, anyway? Don't those guys even have phones?

[Taernath]

Diablo on Mobile.... holy shit what a train wreck.

Wouldn't have been a big deal if they didn't make Immortal the focus/big reveal of the Diablo panel. Nobody goes to Blizzcon for mobile stuff.


On the earnings call, Activision Blizzard CEO Bobby Kotick told investors that the company had “once again achieved record results in 2018" but that the company would be consolidating and restructuring because of missed expectations for 2018 and lowered expectations for 2019. The company said it would be cutting mainly non-game-development departments and bolstering its development staff for franchises like Call of Duty and Diablo.

This is something that's been going on in other companies too, making a game that sells and reviews well, but disappoints investors because they wanted it to make ALL the money. We're probably overdue for an industry crash.

[Gelston]

It is always an interesting thing with the stock market. A company can be successful but still get totally wrecked.

[Stumplicker]

I will say this - Activision Blizzard has been really focusing on the Chinese market for about a decade now. They're heavily invested. And the trade war hits them on both ends of that, both in material costs and labor, and exporting product. It's not "Lay off 1000 people" bad, especially since election season is a hard exit point for the trade war, but it is something to consider. Record revenue, but probably not record profits.

[Taernath]

ActiBlizz gave their new CFO $15 million worth of bonuses right before they laid all those other people off. ¯\_(ツ)_/¯

[Stumplicker]

ActiBlizz gave their new CFO $15 million worth of bonuses right before they laid all those other people off. ¯\_(ツ)_/¯

Money doesn't grow on trees! Diamond-encrusted Maseratis are built on the tears of fired janitorial staff.

[Gelston]

ActiBlizz gave their new CFO $15 million worth of bonuses right before they laid all those other people off. ¯\_(ツ)_/¯

They were successful, until they weren't. Honestly, laying people off doesn't mean you aren't successful either. Cost saving, just don't need the employees.

[Alfster]

I will say this - Activision Blizzard has been really focusing on the Chinese market for about a decade now. They're heavily invested. And the trade war hits them on both ends of that, both in material costs and labor, and exporting product. It's not "Lay off 1000 people" bad, especially since election season is a hard exit point for the trade war, but it is something to consider. Record revenue, but probably not record profits.

Wait. What? Trade wars causing this? Source for that?

The games that ended up on Chinese banned list happen to be the games blizzard was pushing. Too much gore.

[Stumplicker]

Wait. What? Trade wars causing this? Source for that?

The games that ended up on Chinese banned list happen to be the games blizzard was pushing. Too much gore.

Tariff list 2 and 3 in section 301 cover pretty much all paper and plastic imports, increasing cost for physical copies to be printed. List 3 also includes basically all the things that are used in anything, from bitumen to upkeep the parking lot to latex gloves to prevent fingerprints in your case packs. China's retaliatory tariffs have thrown 10% blanket on everything that comes their way to even the score, and of course, FCL shipments are at an all time high cost both due to container shortages and panicked importer/exporters. Activision Blizzard isn't the only one hit. Every business in America is affected in some way or another. But I know that Activision Blizzard has heavily focused on Asian markets for, that we know of in obvious fashion, World of Warcraft and Overwatch. They already had a huge American base. It was the logical next step for them. And as everyone knows at this point, just...everything is made in China, so anything physical they may be importing has increased. They weren't hit by the 25% list 1 unless they built some giant new facility, but the rest, absolutely. And if the ultimatum isn't met by March 2nd, the threat is that the current 10% goes to 25% across the board for exports.

https://www.scarbrough-intl.com/section-301-china-imports/

https://ustr.gov/sites/default/files/enforcement/301Investigations/Final%20Second%20Tranche.pdf

https://calculators.io/us-customs-list-of-tariff-impacted-items/

[Gelston]

Tariff list 2 and 3 cover pretty much all paper and plastic imports, increasing cost for physical copies to be printed. List 3 also includes basically all the things that are used in anything, from bitumen to upkeep the parking lot to latex gloves to prevent fingerprints in your case packs. Activision Blizzard isn't the only one hit. Every business in America is affected in some way or another. But I know that Activision Blizzard has heavily focused on Asian markets for, that we know of in obvious fashion, World of Warcraft and Overwatch. They already had a huge American base. It was the logical next step for them. And as everyone knows at this point, just...everything is made in China, so anything physical they may be importing has increased. They weren't hit by the 25% list 1 unless they built some giant new facility, but the rest, absolutely.

https://www.scarbrough-intl.com/section-301-china-imports/

https://ustr.gov/sites/default/files/enforcement/301Investigations/Final%20Second%20Tranche.pdf

https://calculators.io/us-customs-list-of-tariff-impacted-items/

What sort of peasant buys physical copies of blizzard games?

[Androidpk]

What sort of peasant buys physical copies of blizzard games?

People that collect them for starters. Physical game sales still make up a huge percentage.

[Gelston]

People that collect them for starters. Physical game sales still make up a huge percentage.

So, basically no one then.

[Stumplicker]

What sort of peasant buys physical copies of blizzard games?

Gamestop, Best Buy, Walmart, Target, etc etc etc. For every 1 copy you see on the shelf, 10 more are printed that probably get DWC'd at the end of the game's life. Every Walmart in America has a copy of Starcraft II Battlechest on the shelf right now still probably, whether or not anyone buys it. And there are probably 20 of those in a case. And you're Walmart. You have more than one case because you have to support the other nearby walmarts in case they run out, and be able to fill online sales (They dropship out of local stores/warehouses to compete with Amazon's Prime delivery). And don't forget the holidays. Grandma doesn't call and ask for your Steam username when she's buying you a gift for Christmas. Stores stock right the fuck up on physical copies. They get credit back from the company if they don't sell. One of my ex clients used to go to store closings and buy boxes and boxes and boxes of old games from the 90s and resell them on ebay because of the nostalgia market. Made a small fortune off of CompUSA/Circuit City/Office Max/Office Depot/Staples/Toys R' Us closings.

Edit to add: Physical copies are just one example though. Everything, and I mean EVERYTHING is on list 2 and 3.

[Androidpk]

So, basically no one then.

Lots of people actually.

[Taernath]

What sort of peasant buys physical copies of blizzard games?

I used to get physical WoW collector's editions. The last one was trash though, no art book, behind-the-scenes DVD or soundtrack CD, just a big paperweight. Didn't get that one. Good job cutting costs, Blizz.

[Gelston]

I used to get physical WoW collector's editions. The last one was trash though, no art book, behind-the-scenes DVD or soundtrack CD, just a big paperweight. Didn't get that one. Good job cutting costs, Blizz.

They have to pay for their 5m dollar a month servers somehow.

[Stumplicker]

Hahaha

[Neveragain]

We're probably overdue for an industry crash.

I'm pretty much expecting something like the era between Atari and Nintendo.

A VR platform will be the next renewal.

[Taernath]

They have to pay for their 5m dollar a month servers somehow.

https://i.imgur.com/XS5LK.gif

[Maerit]

From my experience (and I do work in the gaming software development industry) when a major project completes, gaming companies tend to lay off the majority of the staff because they don't have work for them. You can have an awesome year, but if the next project the company is starting is already staffed, requires less staff, or requires a different set of skills - you fire your current staff.

The same thing happened when Bioware released Star Wars: KOTOR - my current co-worker was staffed for that project, it finished, went into support mode, the entire staff other than the support staff was let go. Not because the game did terrible (it did pretty well out the gate), but because the company had nowhere to assign the staff.

It's a pretty common cycle in gaming...

[Methais]

That's what happens when you pay $5m a month per WoW server.

EDIT: Dammit Gelston. Reported.

[Stumplicker]

That's what happens when you pay $5m a month per WoW server.

EDIT: Dammit Gelston. Reported.

Is that what they teach you at teacher school for mentally challenged goatse enthusiasts?! Reuse other people's witty comments that already got wittily commented?!

Weak. Somebody should subpoena your IP and tell your Principal.

[Methais]

Is that what they teach you at teacher school for mentally challenged goatse enthusiasts?! Reuse other people's witty comments that already got wittily commented?!

Weak. Somebody should subpoena your IP and tell your Principal.

You keep trying too hard. Scale it back some.

[Stumplicker]

You keep trying too hard. Scale it back some.

I ate lunch today so I have far more energy right now with which to flip shit at people for no raisin. It's usually naptime on my feet about now.

[Methais]

I ate lunch today so I have far more energy right now with which to flip shit at people for no raisin. It's usually naptime on my feet about now.

https://media.tenor.com/images/652fad582988980aaf586523ef20e3ad/tenor.gif

[Some Rogue]

Revenue is not profit. Also, they have no new games really scheduled to come out, so they laid off people who don't work in development and hired more developers. Shocking!

[subzero]

From my experience (and I do work in the gaming software development industry) when a major project completes, gaming companies tend to lay off the majority of the staff because they don't have work for them. You can have an awesome year, but if the next project the company is starting is already staffed, requires less staff, or requires a different set of skills - you fire your current staff.

The same thing happened when Bioware released Star Wars: KOTOR - my current co-worker was staffed for that project, it finished, went into support mode, the entire staff other than the support staff was let go. Not because the game did terrible (it did pretty well out the gate), but because the company had nowhere to assign the staff.

It's a pretty common cycle in gaming...

From what I've read, they're keeping their dev teams and may actually be investing more in the dev areas. Some of the 'big' names I've seen released were CM/PR positions so far. I figured there would probably be a lot of artists, audio people, etc getting the boot.

[subzero]

Weak. Somebody should back trace your IP and burn your house down.

;)

[Androidpk]

Revenue is not profit. Also, they have no new games really scheduled to come out, so they laid off people who don't work in development and hired more developers. Shocking!

They don't have a single new game coming out this year.