Investors don’t understand the game, they look at money specifically.
The delay is a good thing, it will mean a better product and result in better profits. The thing is that Investors are not players, they don’t look at the fine details like “will a game be fun”
What they instead see is a product is being delayed and thus their profits will be affected and they choose to cash out.
Shareholders/Investors knee jerking like this =/= a valid metric for determining if this choice is a good idea or not. What will determine if it was or was not a good idea is the long term not the short term effects.
At this stage, consumer feedback is what matters in this situation. If they push out a bad product at the cost of concurrent subscribers and thus the game does bad then Investors leave in the end and then wow ends up in an even worse spot. If wow instead bites the bullet now, and there will absolutely be losses from a delay, and pushing out a better product then those short term losses can be recouped in the long term.
FFXIV is a very good example of seeing the writing on the wall, taking a short term, up front, loss and recovering it over time with a superior product.
This was a good decision and a valid decision on Blizzards part.
"A company’s worth—or its total market value—is called its market capitalization, or “market cap.” A company’s market cap can be determined by multiplying the company’s stock price by the number of shares outstanding. "
3 Billion dollars in value left the economy over this. It is not the big deal some are making, no, but it also isn’t the nothing that others are claiming. Hyperbole on both sides here, big time.
(sigh). dude, linking an investopedia article and not understanding a thing about it doesn’t work. You should have kept reading.
Shares outstanding refer to the number of shares of a company that are currently being held by its [shareholders] When a private company needs to raise capital, it undergoes an [initial public offering] (IPO), selling ownership in itself by distributing shares on a public stock exchange. A company can distribute more shares at a later date if it needs to raise more capital or conversely buy back stock, reducing the shares outstanding. As such, shares outstanding is a number that changes often.
This is why you can’t use shares outstanding to get an accurate true market value in real time, because share outstanding will change as a value constantly based on buy-backs, sell-offs, and the like.
Also:
Market capitalization reflects the equity value of a company only; it does not necessarily reflect its true market value .
A true market value of a company takes significantly more than market capitalization into account. Assets such as physical locations, current inventory, patents, and a literal crap-ton of other stuff comes into play.
So again, blizzard did not lose 5% of their TOTAL VALUE AS A COMPANY TODAY. They lost 5% of their equity value based on market capitalization, which is a reasonable fluctuation in that marketplace.
I don’t know how you haven’t noticed it yet, but shareholders don’t care if a product is good in any way. All they care about is how much revenue a product can generate. Activision and Bobby Kotick have mutated Blizzard into the pop music equivalent of a video game development company because it’s what the shareholders want. It’s why there’s a token. It’s why there’s a cash shop. It’s why every special cash shop deal comes with a 6 months subscription attached to it.
Retail WoW is soulless garbage churned out for the sake of easy cash grabs off the consumers. It should come as no surprise that when Blizzard makes a small gesture to return some integrity to their development team, it results in shareholders throwing a fit and the stock dropping.
I never conflated equity value with true market values, you did. At no point did I ever talk about the worth of the company if it were to sell. When I speak of value, I am clearly talking about equity value. i.e. the most important value to the investors…and the only thing tightly coupled to the stock price.
To be perfectly clear for you: I never stated blizzard (actually Activision-Blizzard, since we are being pedantic) lost 5% in value as a company. In fact, the part of my post that you conveniently cut from your reply states I am talking about market value, market capitalization, or “market cap”.
Cute that you think you are educating me on how this works when I’ve been on the board of directors for a large biotech company and have attended every shareholder meeting for over 15 years (and presented at most). The fact remains, I would hate to be the one explaining to my shareholders why we lost 5% in market value in one day.
You also conveniently snip out every time I mention that this is, in fact, NOT a big deal (but also not nothing).
Long term >Short term gains. The news may have dipped the stocks a little bit, but in the long run, if the game is healthier, that means more subs and more happy player base, which means more money.
Remember when activistion made hundreds of millions in profit but their stock tanked cause they didn’t make as many hundred of millions as everyone thought they would?
The stock market has no correlation to reality, its a number that tells you what a bunch of out of touch vulture capitalist are feeling that hour.
Because stock holders are uninformed reactionaries that don’t understand that this is a move the fans largely support and will be monetarily beneficial in the long term?
you’re delusional if you think supporting supporting BLM has that much effect on th- oh I get it now. You’re one those fragile white men. Pleased to meet you
nah im a proud african american that doesn’t want my race degraded by the abomination which is “black friday” and should be called midnight friday or plain up midnight madness, people beatin robbin stealing each other at the store over items to buy and actin like animals, hell any race should be offended if such a day is named after them and gives then that connotation and hey blizz if you see this I will prove with my ID and as repercussion hope you permaban
Whiteknight-thunderlord for being the next joe biden trying to tell black ppl they aint black
They don’t trust that it can happen. Certainly Blizzard has provided no signs that they know how to restore and maintain long term subscribership. They managed to regain a lot of the casual PVP player base with BFA, and after initial missteps stabilize it in 8.1, but they let that success evaporate in 8.2 and 8.3.
Absolutely. They should quit wasting their time with coming up with broken system after broken system and taking all expansion to balance it. They should focus on providing more content - more quests, more dungeons, more raids - with each expansion, without bothering with system revamps.
Given the $$$ Ive wasted on this game I hate to have to agree with this, lol.
If this were a marriage I’d swear my spouse was trying to sabotage our relationship so id just dump them.
all that wasted time on these annoying systems that would be better spent working out the kinks in all those specs that end up being garbage everyother expansion.
And even talking about it in here is risking a suspension, lol.
Why I believe John Hight when he said it wasn’t an easy choice to delay. Not because they care what we think, but it’s likely shareholders were 100% not onboard with a delay.
