The beginning of 2019 has been marked by a number of changes at Activision Blizzard, with the company’s CFO, Spencer Neumann, leaving to join Netflix and Blizzard CFO Amrita Ahuja taking a new position at Square Inc. Today saw yet another shakeup when it was announced that the company isrelinquishing the publishing rightsto Bungie’sDestiny, and this has seemingly led to a significant drop in the value of Activision Blizzard’s stock.
Specifically, the company’s stock fell more than 6.5% following the announcement that Activision Blizzard would be separating itself fromDestiny 2. This drop occurred in after hours trading, following a day that put the stock up 1% to $51.35, as the announcement was made after the market had already closed.
When Activision Blizzard began publishingDestiny,following a partnership with Bungie that started in 2010, the company’s stock was on the rise. In 2015, it hit an all-time high before encountering somenotable dips, which culminated last year with the company closing 2018 down 26% on the market.
Some analysts have cited concerns about the company’s 2019 release schedule as a culprit for these losses, pointing to a controversial showing at last year’s BlizzCon in particular. While Activision Blizzard indicates that the loss ofDestinywill have no impact on its bottom line, the absence of the title from the company’s portfolio is certainly not improving the year’s offerings.
Last November, Activision Blizzard indicated thatDestiny’s financial performance had fallen below expectations, leading toDestiny 2’s game director, Luke Smith, taking to social media indefense of the title. Clearly, the two companies have not been seeing eye-to-eye on the franchise, and time will tell just how much impact the split has on the company’s finances.
Destiny 2is available now on PC, PS4, and Xbox One.
