I just read an interesting FORBES article about WOW being an Achilles Heel for ATVI. It estimated that Guild Wars 2 could possibly take 25% of WOW's business. The article was perplexing. It never mentioned the TITAN project that has been ongoing for years, and the fact that ATVI and BUNGIE have a 10 year contract in which they are working on a new MMORG project. I know that there will be some immediate threats to WOW's revenues, but ATVI IS NOT complacent, they are being PROACTIVE in the MMORG field.
what i don't get is ATVI is profitable w/ buckets of cash, EA et al are losing money, why is the market disillusioned? yep anything the froggies touch turns to pond scum, but they are going to exit so forward looking has to be positive???
ATVI equity perfomance has done much better than EA/TTWO for the record. We are seeing a cyclical decline in the sector that ATVI has somewhat withstood. I wouldn't get excited about the segment till 2014 when new consoles could potentially turn the industry around.
I do not know for sure, but it does seem that the powers at be in ATVI recognized that WOW was suffering by 2010 -2011 and decedided that they had better be proactive in the MMOORG field before WOW becomes a game of the past!!! Again, I like that they are in China with COD. I know it's free, but it is a HUGE market!! I really like their large revenues from DIGITAL.
Good point. I would think from the very little that I have read online that TITAN and the new ATVI-BUNGIE collaboration is not going to be like WOW. ATVI did raise full year guidance and they do have 3 NEW releases this fall(COD, Skylander's, and new WOW package). I think from what I have seen from WOW subscriptions and EA's Star Wars' losses that this recession/mild depression has made a deep impact on player's decision to continue playing these types of MMPRG's. A new game would boost revenues, but would probably cannabolise WOW subscriptions. Considering how old WOW is, maybe that is what ATVI wants to accomplish!!!!