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Activision Blizzard reports earnings on layoffs and losses



Activision Blizzard (ATVI), the publisher of games such as "Call of Duty" and "Overwatch," will announce the fourth quarter on Tuesday after Tuesday's close. This quarter's earnings will be a clear sign of how the company is surviving the video game landscape, disrupted by changes to the traditional business model and the success of free-to-play games such as Fortnite. Analysts Expect Activision Blizzard to post $ 1

.28 in diluted earnings per share, up 37% over the prior year, at $ 3.04 billion, supported by solid digital sales of games such as "Call of Duty: Black Ops 4", a higher subscription income from "World of Warcraft" and in-game purchases from some casual games, such as "Candy Crush Friends Saga". In fact, investors will look to see if the Santa Monica, California based company is generating strong digital revenue and growing profit margins after months of inventory decline.

The stock of Activision Blizzard has fallen nearly 50% since its high in October.

Bloomberg announced late last week that the company wanted to lay off hundreds of employees due to flat-o shares Some of its games, including Overwatch and Hearthstone, are seeing a decline in sales. Two sources familiar with the matter tell Yahoo Finance that Activision Blizzard has initiated layoffs at its headquarters in Santa Monica on Monday, although it is unclear how far the layoffs are going at this time.

The company also left a number of executives last year, including Eric Hirshberg, CEO of Activision Publishing, Mike Morhaime, president and co-founder of Blizzard, and Amrita Ahuja, CFO of Blizzard, who joined Square (SQ) in January as CFO.

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Activision Blizzard parted with Bungie for ten years after disappointing sales of" Destiny 2: Forsaken "took place last September – a move that has taken place "We see the potential savings in operating expenses as positive over the long term," Colin Sebastian, senior research analyst at Robert W. Baird & Co, said.

Activision Blizzard's problems can be addressed to the be tied to larger game scenery. According to London research firm Pelham Smithers, video game revenues this year could fall 1% to $ 136.5 billion – the industry's first decline since 1995 – due to transformative titles such as "Fortnite," a relative lack of major console matches and China's more stringent approach approval of games.

The Fortnite from Epic Games was a thorn in the side of Activision Blizzard. Since the introduction of the free-to-play multiplayer shooter game in 2017, "Fortnite" has almost completely changed the game of playing: It's easy to learn and to learn. It is available on a variety of different devices from the PC, the Xbox One, and PlayStation 4 for the Nintendo Switch and the iPhone – a relatively rare feature in games. (Players can purchase locked items or features in the game, including weapons and clothing.)

This is in sharp contrast to the Activision Blizzard model, which asks players to earn up to $ 60, with the exception of a few casual games such as Candy Crush Saga to buy a game in advance and pay later for additional content. As a result, Activision Blizzard reported that the number of its games watched decreased from 352 million in the second quarter of the previous year to 345 million in the third quarter, the fourth quarter in a row.

Investors will look forward to management on Tuesday afternoon for its plans to revive its dizzying audience base and increase user engagement.

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