Activision Blizzard Q2 2021 Investor Call
The Activision Blizzard earnings call was this afternoon. We've highlighted some of the written results below.

  • Activision had 127 million MAUs in the second quarter, down from 150 million MAUs in the first quarter, down from 128 million MAUs in Q4 2020, up from 111M in Q3 and 125M in Q2.
  • Blizzard had 26 million MAUs in the second quarter, down from 27 million MAUs in the first quarter, down from 29 million in Q4 2020, down from 30 million in Q3 2020, and down from 32 million in Q1/Q2 2020.
  • World of Warcraft net bookings again grew a double-digit percentage year-over-year, driven by the launch of Burning Crusade Classic.
  • Subscriber numbers and hours played were higher following the release, demonstrating the importance of Classic in enabling more ways for players to engage.
  • World of Warcraft remains on track for much stronger engagement this year than is typical outside of a modern expansion year.
  • The latest expansion of the Hearthstone franchise, Forged in the Barrens, delivered expansion-over-expansion net bookings growth for a second consecutive release following its March launch
  • The team is pursuing additional opportunities to make Diablo Immortal even more engaging for a wider audience, with the launch now slated for first half of 2022
  • Blizzard continues to make strong progress on Diablo 4 and is allocating substantial resources to creating exciting in-game content to drive engagement over multiple years
  • Overwatch 2 development passed an important internal milestone in recent weeks. After a great response to the recent community update, the team is looking forward to revealing more of the game in the coming months as they approach the laterstages of production.



Blizzard Employee Letter to Leadership
IGN shared Blizzard employee's letter to management.
Originally Posted by MMO-Champion
To CEO Bobby Kotick and the Activision Blizzard executive leadership team,

We are The ABK Workers Alliance, an organized group of current Activision Blizzard, Inc. employees committed to defending our right to a safe and equitable workplace. That right remains endangered as the stories of abuse and mistreatment continue to grow in scope, and new accounts of harassment perpetrated by current Activision Blizzard employees have continued to emerge since the publication of the DFEH’s lawsuit.

Last week, we took collective action to demand better working conditions for women and other marginalized groups at Activision Blizzard King (ABK) by writing an open letter signed by more than 3,000 current employees. We organized the #ActiBlizzWalkout at Blizzard Entertainment’s Irvine headquarters where more than 500 workers walked out and hundreds more participated virtually around the world.

Our request for action crosses studio lines, including workers from Activision, Beenox, Blizzard Entertainment, High Moon Studios, Infinity Ward, King, Sledgehammer Games, Raven Software, and Vicarious Visions. Our goal is for the executive leadership team to address their response to the California DFEH lawsuit, acknowledge the reality of working conditions across our organization, and commit to meaningful change at Activision Blizzard.

We communicated a list of four demands aimed at protecting our most vulnerable workers. These are: (1) an end to forced arbitration in employment agreements, (2) the adoption of inclusive recruitment and hiring practices, (3) increases in pay transparency through compensation metrics, and (4) an audit of ABK policies and practices to be performed by a neutral third-party. Importantly, we demanded that this third party be selected by an employee-led Diversity, Equity, and Inclusion task force.

In response to our demands, you wrote a letter to employees expressing a commitment to doing a better job of listening. You said you would do everything possible to work with employees in improving our workplace. And yet, the solutions you proposed in that letter did not meaningfully address our requests. You ignored our call for an end to mandatory arbitration. You did not commit to adopting inclusive recruitment and hiring practices. You made no comment on pay transparency.

One of our demands, a third-party audit of ABK practices and policies, was ostensibly addressed by your decision to hire WilmerHale to conduct an internal review. While we commend the idea of hiring a third-party firm to perform an internal review, The ABK Workers Alliance cannot support the choice of WilmerHale as an impartial reviewer.

We reject the selection of WilmerHale for the following reasons:

  • WilmerHale’s pre-existing relationships with Activision Blizzard and its executives create an unacceptable conflict of interest.
    • Activision Blizzard has already been a client of WilmerHale, who you used to dispute the Diverse Candidate Search Policy proposed by the AFL-CIO Reserve Fund and UAW Retiree Medical Benefits Trust earlier in 2021.
    • ○ Frances Townsend is known to have relationships with multiple partners at WilmerHale, including former FBI Director Robert Mueller.
  • WilmerHale has a history of discouraging workers’ rights and collective action.
    • WilmerHale states on their public website that their services include “advising on union awareness and avoidance”.
    • WilmerHale used anti-collective action tactics in their work with Amazon & Uber.
    • In media portrayals, WilmerHale is regularly referred to as a “Union Busting Firm”. We are already seeing the effects of this ideology in actions that leadership has taken to restrict our freedom of association since last week, including reducing the size of listening sessions and limiting access to those sessions.
  • The WilmerHale partner leading this investigation, Stephanie Avakian, specializes in protecting the wealthy and powerful.
    • WilmerHale outlined Avakian’s work as: “...counseling and defending financial institutions, public and private companies, hedge funds, accounting firms, investment advisors, boards, corporate executives, and individuals facing regulatory and criminal investigations and litigation with the government.”
    • In Stephanie’s speech highlighting her successes with the SEC, all of her significant examples included achievements in favor of investors, retail clients, and customers, but does not once mention employees or laborers. We need legal representation that centers on the concerns of our current employees, rather than investors.

We call on you and your executive leadership team to do better, and to fully address our list of demands. We will not abandon our cause. Our ranks continue to grow across multiple Activision Blizzard studios. While there are structural problems that only you can address, we are already taking steps to improve our workplace through a number of employee-driven initiatives:

  • Worker-to-Worker Mentorship: We are building a mentorship program where workers can seek career advice, support, and sponsorship from a network of colleagues in a safe external channel outside company communication networks.
  • Open Listening Sessions: We will host listening sessions that will be recorded and disseminated across the organization to facilitate ongoing conversation, education, and emotional support for employees.
  • Community Meetings: We will facilitate monthly employee meetings, in a secure external channel, to discuss our concerns, desires, and progress toward achieving our goals. All current ABK employees are welcome to participate in these conversations.

As these actions show, we love our studios and care deeply for our colleagues. We share your expressed unwavering commitment to improving our company together.

We are doing what we can, and we call on you to do what we cannot.

Sincerely,

The ABK Workers Alliance

Twitter: @ABetterABK
This article was originally published in forum thread: Activision Blizzard Q2 2021 Investor Call, Blizzard Employee Letter to Leadership started by chaud View original post
Comments 244 Comments
  1. Draco-Onis's Avatar
    Quote Originally Posted by Lorgar Aurelian View Post
    while we don't have the MAU them self or how they are counted they did Specifically say MAU's for Wow had grown they did so in the Q4 2020 call and then in this report that subs have grown while MAU them self's weren't mentioned.
    It's this lack of transparency that make it hard to take a stand on it one way or another, I used to do this for a living. The facts are sadly that the SEC is a sleeping bear and there's a shit ton you can get away with on earnings call. The subscriber numbers for world of warcraft are not as important since it's not a baseline financial number so they can take whatever liberties they want.

    - - - Updated - - -

    Quote Originally Posted by oathy View Post
    its being reported on twitter blizz are looking for 20 people to hire for WOW
    these are new jobs not replacements
    They have been hiring tons of new devs as they have said in previous quarters they have a lot of games in development behind schedule. It maybe they are trying to rush something for the next quarter, if I were a betting man I would say there's a lot of accountants right now telling Blizzard to work on the next xpac already.
  1. Sentynel's Avatar
    Quote Originally Posted by Djuntas View Post
    Really? Is that what cunts like you have to say trolling on the behalf of a dead women who killed herself?
    Sorry, but yeah. I (and many others) want more details on that story. Because a woman killed herself, let's blame ActiBlizz for it is just simply a shortsighted way of thinking. What was her background like? Any family issues? Relationship problems? Her mental health? And many other questions need to get answered before we all jump on the ACTIBLIZZ KILLED HER HURRDURR train.
  1. imboz's Avatar
    bobby kotick faked moon landing
  1. MoanaLisa's Avatar
    Quote Originally Posted by Draco-Onis View Post
    Did you seriously say that when the numbers were taken don't matter? ROFLMAO, please stay way from accounting. I am going with the numbers they gave us which are MAUs, revenues and sales, they are making everything else murky. Your assumptions are based on nothing but blind faith, maybe you are right maybe you aren't but you cannot be sure because drumroll please BLIZZARD HAS MADE SURE NOT TO RELEASE SUB NUMBERS.
    It's a financial report, not a report on subscriptions. Subscriptions matter less since a certain percentage of players re-subscribe through the token. MAU for Blizzard are across all of their titles. One would expect some loss since WC3 was a bust, HOtS and Starcraft are no longer being developed. But we simply do not know how that spreads out: what games are up, what games are down other than statements made during the phone call.

    Future financial performance across the game industry is based on predicted engagement which is where MAU come in. MAU are taken over a specific period and averaged for three months so the period in question matters but any specific day or week within the range doesn't count for as much.

    - - - Updated - - -

    Quote Originally Posted by oathy View Post
    its being reported on twitter blizz are looking for 20 people to hire for WOW
    these are new jobs not replacements
    Not surprising now that people are getting back to the office. It's a good time to expand the team (as they have been talking about for a while now). Training and such is very, very difficult in a WFH environment.
  1. Dracullus's Avatar
    Quote Originally Posted by korijenkins View Post
    The fact that their share prices went up after this is funny given it's basically all bad news.

    Nothing is near release, Hearthstone is dead, WoW dying, every other game dead.

    Investors must know nothing about this industry if this made people buy in.
    "Nothing is near release" I guess Diablo II 7 weeks from now is not "near" enough. And don't start with "it doesn't count, it's remaster". It's 40 Euro price game, just like Shadowlands.

    Rest is usual "everything is dying/dead" I kept hearing from this community since I started playing, so I won't commen on that.
  1. MoanaLisa's Avatar
    Quote Originally Posted by korijenkins View Post
    The fact that their share prices went up after this is funny given it's basically all bad news.

    Nothing is near release, Hearthstone is dead, WoW dying, every other game dead.

    Investors must know nothing about this industry if this made people buy in.
    Investors understand, as you apparently do not, that they are investing in all of ATVI of which WoW is a part of Blizzard Games which itself is a only a part of Activision/Blizzard. Call of Duty, Candy Crush and whatever else King Games is doing, Activision's Tony Hawk, Crash Bandicoot, Skylanders (plus merchandising which is huge for that title), Angry Birds and all the rest. The intense focus on WoW and their titles is very misleading. Looked at objectively Blizzard has become an underperforming segment of ATVI's business. I'm guessing that's something that Kotick wants to do something about given that it's been years since there's been anything new, there's nothing new announced other than spin-offs and retreads, and Blizzard has apparently walked ATVI into a massive lawsuit.

    Take a look at Activision's full catalog sometime. There may be nothing there that you or I would play but it's deep and has a lot of well-known titles and IP's in it. That's what the investments are all about.
  1. Soon-TM's Avatar
    Quote Originally Posted by Nerovar View Post
    Wait, so if I log into a trial account to see if my old server is dead yet and I play a few games of Heroes of the Storm on the weekend I get counted as two MAUs?
    Yes, you do. If you happen to launch e.g. D3, Heroes and OW once per month, that's already 3 MAUs.
  1. Gadzooks's Avatar
    Quote Originally Posted by korijenkins View Post
    The fact that their share prices went up after this is funny given it's basically all bad news.

    Nothing is near release, Hearthstone is dead, WoW dying, every other game dead.

    Investors must know nothing about this industry if this made people buy in.
    Investors don't really care about MAUs, or new titles, or any of that. I posted about this, I recommend you see my other post on this. ATVI is a dividend stock. If you don't know what that means (and it's fine if you don't), it means you get a payout for every share you own. ATVI has a generous dividend, that pays out yearly in most cases, and is in the same range as Apple (51% vs 59%) (That means 51% of ATVIs profits, from all of their companies, are paid to investors). What the big investors care about is: will the company continue to pay out the dividend as expected, what the potential profits will be, to do that, and how stable will the company be for the future, so they can advise their clients to buy ATVI for their 401ks and investment portfolios, or dump it.
    So far ATVI, or Bobby Kotick, is doing what they should be to keep things stable and money rolling in, from all of their companies, Activision, King, and Blizzard. This latest report isn't the strongest one, but it was enough to keep the big boys like Blackrock and Fidelity around, holding their stock.
    If you listen to the calls, the big investors are invited at the end to ask questions, and it's almost always about things like long term growth, debt the company holds, etc. They don't care how ATVI makes money, just that they keep doing it, and that ATVI won't be a SELL for the rest of the year, and moving forward.

    ATVI is still a profitable company, and they're on track to paying the dividend this year. Stock goes up. It's very simple once you understand how it works.
  1. Sinured's Avatar
    If you play cod, heartstone, wow, diablo and overwatch the same month you are 5 users at the same time :P
  1. jackoff's Avatar
    Quote Originally Posted by Draco-Onis View Post
    I am not sure how you are coming to that conclusion MAUs are down year over year. Even with lockdown and TBC release, the player base is shrinking but they are milking their base more and more that's a very bad sign.

    Also keep in mind these numbers don't include recent events and the streamer exodus.
    Well experienced in a similar environment of work as co CEO, i dont say blizz is not losing blood, they just had way too many clients comparing the money they make and this is nothing. In the end they dont run a supermarket. They just sell their own creation. I just look at the situation from another perspective. These small damages won't change much. As i said there is always new blood.
  1. Kruschpak's Avatar
    Quote Originally Posted by korijenkins View Post
    The fact that their share prices went up after this is funny given it's basically all bad news.

    Nothing is near release, Hearthstone is dead, WoW dying, every other game dead.

    Investors must know nothing about this industry if this made people buy in.
    dont watch daily changes lol, ATVI went sideways for 6 months and dropped significantly in the last 6 days. I suppose the announcement of a new leaderboard gave the most recent boost but overall the stock is trending down
  1. rrayy's Avatar
    Quote Originally Posted by Nurasu View Post
    It would be rather easy to prove, actually - the State of California will have a record of dates and notices, and if Bobby didn't properly or timely disclose the scale of the investigation to investors, there's a case.
    No the state won't. The only records the state has is of complaints given to them directly, not what happened inside the company.
  1. tromage2's Avatar
    Quote Originally Posted by oathy View Post
    its being reported on twitter blizz are looking for 20 people to hire for WOW
    these are new jobs not replacements
    Keep dreaming.

    The management is now looking for people so they can get ride of either those that are behind all the drama of the last few days.
    Or they will replace those that dont fit the blizzard standard.

    Be sure that the management will not accept that employers will get a company to the brink of destruction.
  1. Khann's Avatar
    "demonstrating the importance of Classic in enabling more ways for players to engage." Let me phrase it differently - demonstrating that people are stuck in the past.
  1. Sinured's Avatar
    Quote Originally Posted by Khann View Post
    "demonstrating the importance of Classic in enabling more ways for players to engage." Let me phrase it differently - demonstrating that people are stuck in the past.
    so you never watch a movie twice or play an older game you used to play?
    your life must suck i feel pity for you
  1. Maglen's Avatar
    World of Warcraft remains on track for much stronger engagement this year than is typical outside of a modern expansion year.
    Press [X] to Doubt
  1. Apexis's Avatar
    Quote Originally Posted by msmollymillions View Post
    well they keep losing users but are making money...so a lot? I'm sure they managed to snag a lot of players on 6 month mount subs right before the news broke that caused a lot of players to re-evaluate their dedication to Blizzard. Funny thing is Blizzard now has 6 months to convince that player the sky isn't falling and they might succeed since so many people are hopelessly addicted.
    Blizzard does not have to convince me of anything. It is my choice to play WoW or any Blizzard games for that matter. My continual playing of said games does not hinge on what takes place within the business of Blizzard. As long as they continue to offer products that I am willing to play. I will continue to play their games. If not, then it's time for me to move on. I see the current situation as much as a union power grab as I see it as Blizzard having some serious company-wide issues.
  1. Wangming's Avatar
    Quote Originally Posted by Apexis View Post
    Blizzard does not have to convince me of anything. It is my choice to play WoW or any Blizzard games for that matter. My continual playing of said games does not hinge on what takes place within the business of Blizzard. As long as they continue to offer products that I am willing to play. I will continue to play their games. If not, then it's time for me to move on. I see the current situation as much as a union power grab as I see it as Blizzard having some serious company-wide issues.
    Yeah all those women got themselves harrassed so they can form a union and grab away power from poor old Kotick and Brack who were absolutely great for the game. Pro 5D chess move.

    Do you even hear yourself you fucking wanker?

    I mean you can like the game all you want. I wont argue taste. Or lack thereof. But this is some pretty nice conspiracy theory shit right here.

    - - - Updated - - -

    Quote Originally Posted by Nerovar View Post
    It really seems like WoW Classic is pulling the game out of the muck in terms of numbers. Might turn out to be bad for the game in the long run if it enables Blizzard to rest on that 'accomplishment'. WotLK will likely be the last big Classic title for many. I can't realistically see many players who were drawn to the idea of 'Classic' move over to Cata so it would probably result in a playerbase that is spread very thinly across three titles (retail, wotlk, cata).

    Up until then they can just release these morbid throwaway expansions without really suffering from it, I guess.
    Who are we to judge? If people really want to pay a monthly fee to get back to a ten years old game that won't have any content updates ever, let them. Everyone else has like half a dozen games to pick from depending on what they want in an MMO.
  1. Draco-Onis's Avatar
    Quote Originally Posted by jackoff View Post
    Well experienced in a similar environment of work as co CEO, i dont say blizz is not losing blood, they just had way too many clients comparing the money they make and this is nothing. In the end they dont run a supermarket. They just sell their own creation. I just look at the situation from another perspective. These small damages won't change much. As i said there is always new blood.
    Agreed long term Blizzard has a good outlook but it will be bumpy short term next quarter.
  1. Orisai's Avatar
    Quote Originally Posted by Wangming View Post
    Yeah all those women got themselves harrassed so they can form a union and grab away power from poor old Kotick and Brack
    Victims can bring their case to the courts alone or as a group, then prove that they were sexually assaulted by Afrasiabi, Allen Brack, whoever they fill charge against. If the defendants are found guilty of the charges upon them in due process, then they'll be sentenced to either jail, fines, victim indemnization, whatever the judge decides.

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