Is This the Beginning of a Turnaround for Activision Blizzard?
Share prices of Activision Blizzard (NASDAQ: ATVI) are down about 12.7% week-to-date through Thursday after management announced the departure of Jen Oneal as co-lead of Blizzard and said that the highly anticipated releases of Diablo 4 and Overwatch 2 would be delayed.
Sometimes you must hit rock bottom before real improvement begins, and the market's reaction to the new developments certainly makes investors wonder whether things can get any worse for the company. The Blizzard segment has undergone several personnel changes since it was hit with a lawsuit over its workplace culture in July. That turnover has now resulted in two major releases being pushed back to a later date.
However, the bad news in the earnings report overshadowed other positive developments, including strong sales of Diablo 2: Resurrected. This is an early indicator of significant pent-up demand for new experiences in this franchise, which sets the stage for more growth over the next five years.
Source Fool.com
