Categories Analysis, Markets, Technology

Activision Blizzard: Maybe Diablo Immortal is not that bad

Activision Blizzard (ATVI) has had a tough week. The company faced severe backlash from the gaming community after unveiling its new Diablo: Immortal mobile game at BlizzCon last Friday. Gamers had huge expectations, with some even hoping that the Diablo 4 was on its way, and the new launch came as a rude shock to them.

Needless to say, Blizzard was bombarded with criticism in the form of sarcasm, YouTube dislikes and negative comments on gaming platforms. Activision’s partnership with Chinese game developer NetEase (NTES) even sparked claims that Immortal was the clone of an older NetEase game.

But is the Diablo: Immortal really that bad? Some experts think, maybe not. Mobile games generate good revenue for Activision and it makes sense for the company to take this route. Although diehard PC fans might not be convinced, the simplified experience and cost-efficiency that comes with Diablo: Immortal could bring in significant profits for the company.

The partnership with NetEase provides opportunities for expansion in China which is also an advantage for Activision. Experts also believe that franchises come with their own value and these do not diminish with the launch of one product. The company can make up for their losses with future offerings.

In other words, Diablo: Immortal might need some time to prove its potential, and once the dust settles, fans might realize it was not that bad an idea after all.

Earnings Preview: Will Overwatch shine for Activision Blizzard in Q3?

Activision’s stock is slowly picking up after being hit by the controversy and falling to its lowest level since January earlier this week. The company is scheduled to report third-quarter 2018 earnings results on Thursday and investors will be looking forward to updates on the performance of its various franchises. Activision’s shares were up 1.6% as of 2:20 pm ET.


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