Here are four more resignations from Infinity Ward, bringing the total who have resigned or been forced out to ten:
This has generated an enormous amount of bad PR for Activision-Blizzard, as MW2 and Infiniy Ward have a strong following. It has been blogged about in all the major gamer blogs and the perception is forming of a David vs. Goliath battle, where the little guy is fighting some big evil greedy corporation. It doesn't matter if that is the reality but it is the perception the gaming community is taking. And that combined with options expiration week has helped fuel the perfect short storm.
The ravaging of Infinity Ward should have little to no effect on ATVI's earnings this year. People will continue to buy their games regardless, and IW had only one more product due for this year, another map pack before Christmas. I imagine work on this is already partially done, and the overhead to make these maps is minimal, so they should still release this year. If the quality of the product suffers remains to be seen.
"They had to be cashed in or they expired."
Most of them expired in April 2010. Some were years from now. Of course between the time they exercised and sold early and now, we've seen delays of SC2, Blur, Bond, Singularity, an earnings miss only offset by share buybacks, further collapse of GH, DJ Hero selling as cheap as $50, and all these problems with IW. It's safe to say they knew of these things before we did, which is why they sold out before we knew.
>> They pulled out several hundred million last year into their own pockets. <<
Again, nice try...
Those were options that were part of their compensation. They had to be cashed in or they expired.
Even a slug, like me, got stock options as part of my compensation and they had to be cashed in within a certain number of years or they expire.
Can't hold onto a granted option forever.
Seriously.... The IW guys need to go... Since when was MW2 a good game???? yeah it sold alot, but it wasn't a great game... Modern Warefare 1 was a great game, and MW2 sold alot because of all the hype MW1 left....
ATVI needs to come strong with the next "modern" call of duty title. The last one was a dud (MW2), and i believe they know it (even though it sold well).
ATVi knows how to make money from their games... They did a similiar thing with Marvel alliance 2 (which sucked balls), but sold decent because of the hype Marvel A1 left... I expect Marvel A3 to be great, because ATVi knows they must make a great game in order for it to intice people who bought MA2 (crap), to come out and buy it.
this is probably what's causing the stock drop yesterday and today. ...it's tough to see ERTS up 2.17% today and ATVI down 3.02%. Hopefully ATVI is able to fill the open spots at IW with other qualified people, but lets not forget that this year's MW is made by Treyarch and not Infinity Ward, so over the next 12 months or so the exit of the guys from IW should not be impacting the bottom line. ...I think this news dies out by early next week, and investors start looking forward to ATVI's earnings, as well as Starcraft 2. This is what ATVI said about Starcraft 2 during their last conference call: "...very optimistic about our prospects for the game. We are still tracking toward our goal of mid-2010 release."
"This is what ATVI said about Starcraft 2 during their last conference call: "...very optimistic about our prospects for the game. We are still tracking toward our goal of mid-2010 release."
Hmm, I remember when they said in a conference call it would be out by the end of 2009.
Most importantly, the majority of those ten are Leads with 8 years experience there. Contrary to what some may think, you cannot replace that with the laid off cast offs that other publishers didn't want.
>> you cannot replace that with the laid off cast offs that other publishers didn't want. <<
jester- What makes you think that ATVI will replace them with "laid off cast offs"???
You don't think that a $$Billion Dollar+$$ company can't pay whatever it takes to hire top talent???
Get real, Homer