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Aug 3 • 9 tweets • 4 min read
1/ A bit of conversation about EA and #ActivisionBlizzard. This last quarter demonstrated just how important KING has been for ActiBlizz, especially as engagement has fallen on #CallofDuty and many Blizzard products (Diablo Immortal helped pad Blizzard up a bit).
2/ Don't get me wrong, I'm actually engaged with many Blizzard products and I play plenty of Call of Duty, but between launches, it is clear that much of the consumer market isn't as engaged as they used to be. So where does that leave Acti and Blizz?
3/ In regards to segment income, each comes in roughly over 90 million USD this last quarter. Combined, and without King, that places those two segments under EA (the company) in regards to operating income. King is a mobile juggernaut so we need to set them aside for a moment.
4/ So...why can Electronic Arts weather this dip a bit more effectively than #Activision & Blizzard? The bottom line, to me, appears to be product mix. One of my long time criticisms of the Activision "mix" has been that there isn't one. Blizzard, on the other hand...
5/ hasn't capitalized on their properties like they should (and has run into various other issues). But again, it comes down to product mix. For as much crap as EA gets for their business practices (much of it not deserved) it's hard to argue that they have a "bad" product mix.
6/ EA, in general, has done a better job (IMO) of managing their product portfolio. They can "fail" with a couple launches and other products often pick up the slack. A healthy product mix is also a good driver to create different types of games. #Bioware #Respawn
8/ For as much as I enjoy #CallofDuty, it's basically the only thing that the #Activision component of the business does. Nearly all the eggs in that portion of the company are in the CoD basket (obviously CoD is extremely successful, but I think you get the point).
9/ It does appear that the Blizzard portion of the company is finally getting to a stage where they push multiple products onto the market at the same time. You can see this recent expansion on mobile, along with other recent releases. But, they have plenty of room to grow.
10/ Regardless, EA has done an excellent job of managing their product mix and that's one of the reasons why the industry "dip" isn't affecting them as much as others (even during the cyclical down quarter). I also expect #ModernWarfare2 will be massive for Activision.

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More from @GameOverThirty

Game Over Thirty Profile picture
Aug 3
1/ #Nintendo has released their quarter earnings for 3 months closing June 30, 2022. While sales revenue dropped YoY, the result is arguably reasonable for the current climate. Thanks to exchange rate changes, profit increased YoY, despite the previously mentioned results. ImageImage
2/ An interesting note on HW versus SW sell-through: HW sell-through decreased, but #Nintendo experienced their second best first party sell-through for a first qtr since the launch of the #NintendoSwitch. Also note sales on Switch Sports. ImageImage
3/ Here's the deal with Nintendo's overall numbers when compared YoY. Again, considering the decline in the overall market, these numbers still put Nintendo in a decent, albeit declining position (even considering the Switch is going on 6 years). Image
Read 6 tweets
Game Over Thirty Profile picture
Aug 2
1/ Let's take a look at some of EA's prepared remarks and take a deeper look at why their quarter bucked the industry "dip". The big hitters for EA: #FIFA, #F122, and #ApexLegends. Sounds like F1 has worked out better than expected. Image
2/ Where things get confusing to the outside reader is when it comes to accounting. Net Bookings represent a slight decline YoY, but because of how revenue is accounted for in GAAP, more of it [revenue] was financially booked this last quarter. This is normal BTW. ImageImage
3/ How does this happen? Generally speaking, GAAP demands companies recognize revenue in the quarter that the product is realized. If someone "books" (pre-purchases) a game months before the launch quarter, the revenue can't be accounted for until the product launches.
Read 4 tweets
Game Over Thirty Profile picture
Feb 17
1/ Embracer Group posted earnings for their Q3 2021 (Oct - Dec 2021). By most metrics, it's a healthy quarter, with earnings coming in significantly higher YoY. Like other publishers, spending, headcount, and other metrics are up, cutting into margin. #gamingnews #investors
2/ Embracer is the "biggest" they've ever been, with 25 AAA titles in development (through 2026). Like other publishers, the influx of cash from the pandemic went to fueling future growth. They are also preparing for listing on Nasdaq Stockholm.
3/ Highlights include #HotWheelsUnleashed, #DeepRockGalactic, #Valheim, and #Satisfactory. They also discussed acquisitions but we're careful to keep statements at a high level & cautious.
Read 4 tweets
Game Over Thirty Profile picture
Feb 16
1/ I've seen this question on Twitter a lot today:
"Why is #Nintendo shutting down the #3DS and #WiiU eShops? Why can't they support it longer?"

While I can't answer for Nintendo, I've spent over 20 years in IT and I can add some insight to the conversation: 🧵
2/ The reality is, if most corporations could build "good will" and keep servers & infrastructure buzzing for a small fraction of the balance sheet they would do so. Unfortunately, that is likely not the case with this or other similar entities. #Nintendo
3/ Nintendo chooses (right or wrong) to set up their eShops & systems per project. Meaning: The 3DS and WiiU eShops are VERY likely their own entities, with their own cost structures and systems to maintain. The #3DS and #WiiU released in 2011 and 2012 respectively.
Read 14 tweets
Game Over Thirty Profile picture
Mar 9, 2021
1/ *What does Bethesda Gain?* What is missing in a lot of these conversations is the advantage to #Zenimax (#Bethesda). Many people just view this as #Microsoft just gobbling up #Bethesda (because reasons) but we have to look at what the Zenimax studios gain from this.
2/ The obvious advantage that a #Zenimax studio now has is access to additional funding. Projects can now be funded at a level that might allow a studio to higher more people, or build out a game in the way they always wanted (but never could). #Bethesda #gaming
3/ Access to additional funds will be be felt most by the smaller studios in the group, since it is likely they were always the most restricted when it came to funding. That's a big deal for a studio such as #Arkane, #MachineGames, or #TangoGameworks.
Read 7 tweets
Game Over Thirty Profile picture
Apr 23, 2020
1/ The "story" of #BattlefieldV is complex. While it is obvious #EA & #DICE no longer see significant long term profit potential (vs opportunity cost) for #BFV, how we got to today is worth revisiting. My experience tells me this...
2/ From the beginning, it *appears* the long term goal of #BattlefieldV was to follow the "beats" of the war, from the early European conflict zones to the end, and at the same time, make #BFV something more personal & "customizable" that previous titles.
3/ It's not hard to pull this from the structure we got, and it makes sense for a long running service title. #WW2 is a near perfect scenario (it's a war for God's sake) environment for a #Battlefield title that need updated over a 3-5 year period.
Read 23 tweets

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