Activision
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Documents about Activision
Activision Blizzard Games Going Offline: China
As of January 24, 2023, Activision Blizzard ceased operations for several major titles in China, including World of Warcraft, Hearthstone, StarCraft, and Overwatch 2.
- As of January 24, 2023, Activision Blizzard games including World of Warcraft, Hearthstone, Overwatch 2, and StarCraft have gone offline in China due to the expiration of the company's 14-year partnership with NetEase.
- Because NetEase held the official government-mandated game approvals, the termination of the partnership effectively stripped the titles of their legal authorization to operate in the Chinese market.
- Any potential return of these titles to the Chinese market requires new government approval, a process that industry estimates suggest could take between six months and two years.
Why the Fight Between NetEase and Activision Blizzard Matters to Esports
The breakdown of the partnership between Activision Blizzard and its Chinese distributor, NetEase, represents a significant disruption to the esports landscape in China.
- The partnership between Activision Blizzard and NetEase has collapsed, resulting in the termination of distribution services for major titles like World of Warcraft, Diablo, and Overwatch in China.
- The loss of the distribution deal renders Activision Blizzard games effectively illegal to operate in China due to the country's strict game approval requirements, potentially barring access for months or years.
- The Overwatch League (OWL) faces significant operational disruption, as teams including the Chengdu Hunters, Guangzhou Charge, Hangzhou Spark, and Shanghai Dragons lose their home-region viability.
External and Internal Forces Shaping Voodoo and Ubisoft’s Strategy - Naavik Gaming Podcast
The global gaming industry is currently navigating a period of intense structural realignment, driven by regulatory pressures, shifting consumer engagement models, and the maturation of mobile markets.
- Ubisoft is attempting to stabilize its performance through a major cost-reduction plan and a strategic pivot toward live services, though long-term recovery may require divestitures or external investment.
- Legacy publishers like Ubisoft are struggling with bloated workforces and stagnant open-world production models, necessitating a shift toward quality and brand focus over volume.
- Voodoo is countering declining mobile download rates and privacy-related headwinds by transitioning to a hybrid-casual model integrated with blockchain technology.
Blizzard Presents Scaled-Down Hearthstone Esports Plans for 2023
Blizzard Entertainment’s 2023 esports strategy for Hearthstone marks a significant contraction in the game’s competitive ecosystem.
- Blizzard Entertainment has significantly reduced its 2023 Hearthstone esports program, cutting the total prize pool to $650,000 from $3 million in 2022 and $2.22 million in 2021.
- The 2023 season will feature only seven total events, down from 12 events in 2022.
- Chinese player participation and viewership have been removed from the 2023 season due to the termination of the distribution agreement between Activision Blizzard and NetEase.
Global Games Industry Deal Activity 2022
The global games industry experienced a record-breaking year in 2022, characterized by a significant surge in both the volume and total value of financial transactions.
- The global games industry reached a record $127 billion in total deal value across 1,320 transactions in 2022, marking a 78.8% increase over the previous year.
- Mergers and acquisitions were the primary growth driver, totaling $102.3 billion—a threefold increase compared to 2021.
- The PC and console segment dominated M&A activity, accounting for 83 transactions valued at $74.9 billion, headlined by Microsoft’s $68.9 billion bid for Activision Blizzard.
Predictions for 2023: Life Comes at You Fast
The 2023 outlook for the global video games and technology sectors emphasizes a period of rapid transformation driven by the intersection of gaming, music, and emerging technologies.
- The $200 billion global video game market is increasingly functioning as a social platform for other entertainment sectors, evidenced by events like Blackpink’s 16-million-viewer virtual concert in PUBG.
- The North American gaming labor force, totaling 429,000 professionals, is shifting toward unionization, marked by the successful organization of 300 Microsoft/ZeniMax employees.
- The esports sector is experiencing a significant contraction, highlighted by a 37 percent year-over-year decline in major prize pools and falling stock prices for public firms.
Behind the Mask
The January 2023 analysis critiques Microsoft’s decision to lay off 10,000 employees while simultaneously pursuing a $68.7 billion acquisition of Activision Blizzard.
- Microsoft announced the layoff of 10,000 employees, representing nearly 5% of its global workforce, while simultaneously pursuing a $68.7 billion acquisition of Activision Blizzard.
- Despite recent economic concerns, Microsoft reported $17.6 billion in profit on $50.1 billion in revenue for the quarter ending September 30, 2022, and held nearly $23 billion in cash.
- The $68.7 billion earmarked for the Activision Blizzard acquisition could theoretically fund the salaries of the 10,000 laid-off employees for over 41 years, based on a median salary of $162,818.
NetEase vs. Activision Blizzard: Why NetEase Had to Refuse a Six-Month Extension
The breakdown of the 14-year partnership between NetEase and Activision Blizzard in early 2023 centered on a failed proposal to extend their distribution agreement by six months.
- NetEase refused a six-month contract extension proposed by Activision Blizzard in January 2023, effectively ending a 14-year distribution partnership for titles including World of Warcraft, Hearthstone, and Overwatch.
- NetEase had already disbanded its local operations team and laid off nearly 100 employees following the initial November 2022 announcement that the partnership would conclude on January 23, 2023.
- NetEase characterized the extension proposal as 'outrageous' and 'unseemly,' citing unfair conditions and noting that Activision Blizzard’s negotiations with other potential partners were based on three-year terms.
Global Gaming Report 2022
The global gaming market achieved a record $127 billion in total deal value across 1,320 transactions in 2022, a surge primarily fueled by a threefold increase in merger and acquisition volume.
- The global gaming market reached a record $127 billion in deal value across 1,320 transactions in 2022, driven by a threefold increase in M&A volume headlined by Microsoft’s $68.9 billion pending acquisition of Activision Blizzard and Take-Two’s $12.7 billion purchase of Zynga.
- Public gaming stocks faced significant volatility with many market capitalizations dropping over 30%, while private financing deal counts rose 29% despite a decline in total capital raised to $11.1 billion due to cooling late-stage investment.
- Blockchain gaming proved resilient, securing $4 billion in funding across nearly 400 companies, bolstered by over $13 billion in specialized venture capital fund commitments.
2023 Predictions for Mobile Gaming
The mobile gaming industry faces a period of structural transformation in 2023, driven primarily by the lingering effects of Apple’s App Tracking Transparency (ATT) policy and shifting post-pandemic consumer behaviors.
- The mobile gaming market is expected to stabilize with 0–5% growth in 2023, following a 6% contraction in 2022 attributed to post-COVID behavioral shifts and Apple’s App Tracking Transparency (ATT) policy.
- Studios will shift focus from user acquisition to internal infrastructure for user-level personalization, aiming to achieve 'casual acquisition, core monetization' economics through tools like generative AI.
- The hypercasual gaming category is expected to go extinct in its current form due to Google’s 'Better Ads Experiences' policy, which restricts the invasive ad formats that previously fueled user acquisition for these titles.
Microsoft Gets Pre-Trial Hearing for Activision Blizzard Acquisition
A federal court has scheduled a pre-trial hearing for January 3, 2023, to address motions and arguments regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- Microsoft and the FTC are scheduled for a pre-trial hearing on January 3 to determine the progression of the lawsuit regarding Microsoft's proposed $69 billion acquisition of Activision Blizzard.
- The FTC filed a lawsuit on December 8, 2022, to block the merger, alleging that the deal would create a monopoly and allow Microsoft to degrade rivals' access to key content like Call of Duty and World of Warcraft.
- Microsoft’s formal response argues that the FTC’s opposition violates its Fifth Amendment due process rights and contends that Sony is attempting to use antitrust laws to protect its own dominant market position.
Drake Star Global Gaming Report 2023
The global gaming industry experienced a significant transition in 2023, moving from the hyper-growth phase of the pandemic toward a normalized market environment characterized by strategic consolidation and targeted investment.
- The 2023 gaming market saw $86 billion in total closed deal value, though this was heavily skewed by the Microsoft-Activision acquisition.
- Excluding major outliers, the market recorded 163 M&A deals totaling $10.5 billion and 750 private financing rounds raising over $3.5 billion.
- M&A activity was concentrated in the PC and console segments, while mobile and blockchain ventures attracted the highest volume of private financing.
Its games in the library
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