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Activision Blizzard Stock Drops Following Diablo Drama At BlizzCon

During the weekend at BlizzCon, Blizzard announced a brand new Diablo title for mobile devices, Diablo Immortal. The revelation met…

During the weekend at BlizzCon, Blizzard announced a brand new Diablo title for mobile devices, Diablo Immortal. The revelation met with some backlash, as part of the fan base was hoping to announce the next core Diablo instead. On Monday, when the New York Stock Exchange opened for the first time this week, the shares in Activision Blizzard significantly decreased.

The company’s market capitalization fell by almost 7 percent on Monday ( via Sarah Needleman of WSJ ]). The shares were closed at $ 64.34, which is lower than the previous day close to $ 68.99.

In a message to investors, research company Cowen & Company said “Blizzard wrongly mistakenly how their fans would react, indicating that they are not in contact with their players as they may be.”

Blizzard has not yet announced if Diablo Immortal will be a free or a paid title, although Blizzard develops the title of free-to-play veteran NetEase can offer a clue. Cowen & Company said which business model the game uses, it may be difficult for the game to earn money on the western market, as expectations for additional payments are different from other parts of the world, such as China. The report also mentioned that the game’s control system may feel clumsy against the western audience, but quite normal in China.

The general sentiment that comes from BlizzCon around Diablo Immortal was negative, and this theoretically presents an optic problem and it probably explains why investors may have been spooked. The game is likely to make money with the money, but the decline in the stock price indicates that the way in which games are presented and messages are more important than might have been believed.

The Cowen & Company note mentioned that Blizzard could have avoided giving the player the perception that it was changing direction to focus on mobile games by offering core fanciers a fairy or glimpse of the next core Diablo title. According to Kotaku Diablo 4 is in development and Blizzard recorded a video where co-founder Allen Adham talks about a new Diablo project. Whether this video was scheduled appeared on BlizzCon, but Blizzard said in a statement that it did not “take any messages from BlizzCon this year or have plans for other messages.”

About two weeks before BlizzCon, Blizzard released a statement telling the fans not to expect any major Diablo messages during the show.

Diablo Immortal head spinner Wyatt Cheng told GameSpot at BlizzCon that it’s skeptical is quite fair and reasonable, but he hopes people will be opening about Diablo Immortal.

“I think it’s reasonable in today’s world, our modern world, to be a little skeptical,” he said. “But then for the people who play it, if they can go out and say,” No, no, no, seriously, guys. I was at BlizzCon. I played demo. It was really good. “Hopefully, this word spreads in the mouth.”

Adham, co-founder of Blizzard, told Kotaku that the company expected a certain amount of backlash around Diablo Immortal, but not to the extent that actually occurred. If you do not recognize Adham’s name, it may be because he left Blizzard in 2004 and only returned in 2016. Another Blizzard founder, Mike Morhaime, left the company in October.

GameSpot played Diablo Immortal on BlizzCon, and you can read our first impressions of the mobile game here. No release date has been announced, but Cowen & Company said in its note to investors that it expects the title to start in 2020.

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