Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Gaming Stocks Fall as Activision Blizzard Sells Rights to Destiny Franchise

Published 01/11/2019, 11:25 AM
Updated 01/11/2019, 11:25 AM
© Reuters.

Investing.com - Gaming stocks were mostly down in midday trading on Friday after Activision Blizzard (NASDAQ:ATVI) sold the rights of its Destiny franchise to developer Bungie.

The gaming company fell 10%. The move could cost the company hundreds of millions in revenue and it is unclear why the two companies terminated their 10-year contract early.

“We have enjoyed a successful eight-year run and would like to thank Activision for their partnership on Destiny,” Bungie wrote in a post on its site Thursday. “Looking ahead, we’re excited to announce plans for Activision to transfer publishing rights for Destiny to Bungie. With our remarkable Destiny community, we are ready to publish on our own, while Activision will increase their focus on owned IP projects.”

The news came just a few weeks after Netflix (NASDAQ:NFLX) poached Activision’s former chief financial officer.

Other gaming companies were mixed, with GameStop (NYSE:GME) falling 0.5% and Electronic Arts (NASDAQ:EA) up 0.3%, while Zynga (NASDAQ:ZNGA) slumped 0.7%.

Latest comments

also if you game in any capacity it's very clear why they split up, differences in philosophy on the implementation of monetization strategies and growing distrust in Activision by gamers on average. Honestly it was in activisions best interest to see bungie out the door and relinquish the rights to the destiny IP as it had become tainted with words like "cashgrab" and "ripoff" and was only causing them bleed money in the long run, across YouTube, gamer forums and games news media, their has been almost mutual celebration that Activision has finally pulled their claws out of bungie, that's how you know they have almost no consumer goodwill left at this point. Activision share holders had better read between the lines a pull the ripcord before anymore of their money is lost.
the chickens have come home to roost
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.