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-blizza...ffs-1832571288

https://www.cnet.com/news/activision...Ae2kYcfeV8ZB5U

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/sect...china-imports/

https://ustr.gov/sites/default/files...%20Tranche.pdf

https://calculators.io/us-customs-li...mpacted-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/sect...china-imports/

https://ustr.gov/sites/default/files...%20Tranche.pdf

https://calculators.io/us-customs-li...mpacted-items/

What sort of peasant buys physical copies of blizzard games?