Activision is being investigated for securities market fraud and other unlawful business practices, according to a report from Market Watch.
Securities litigation firm, Pomerantz LLP, is leading the investigation into Activision, with Robert S. Willoughby being the point of contact for investors or shareholders of Activision looking to sue.
This all comes amid a rapid decline in Activision’s stock price over the last six months, which was already on a steady fluctuation since Destiny 2 failed to meet expectations. But things really began to degrade starting with the under-performance of Call of Duty: Black Ops 4, and diving even further after the company announced that Overwatch’s Soldier 76 was gay, followed by the departure of Bungie from under Activision’s publishing wing.
What really hurt Activision’s stock during the separation with Bungie was that Bungie retained the intellectual property rights for Destiny during the split. This means that not only did Bungie cut the ten year deal short, but they took the property with them.
What this means is that Activision doesn’t really get much out of the whole ordeal.
Combine this with the falling viewership numbers for the Overwatch League, a stronger focus on social justice instead of actual gameplay, anti-gamer sentiments with Diablo: Immortal, and you basically have a recipe for disaster. Albeit, all of that stems from the Blizzard side of the division and not the Activision side.
The only thing Activision really messed up on is not having a proper safety net beyond Call of Duty: Black Ops 4, which didn’t quite perform as well as they had hoped. Had the company not run Tony Hawk, Guitar Hero or Skylanders into the ground, they might have had a few more big games to drop during the fall.
Nevertheless, we’ve seen a number of executives bailing out of Activision and Blizzard in a hurry, as if fleeing from a sinking ship, and now shareholders want their financial pound of flesh, and they hired Pomerantz to carve it out of the thinning belly of Activision’s soon to be rotting corpse, and no amount of converting the Overwatch cast to the LGBTQ spectrum is going to help them.
(Thanks for the news tip Waifuhunter88)
(Main image courtesy of Rekenkawai)
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