Class Action Lawsuits Against Activision Blizzard For Lying On Bungie split

Although very well-received by the gaming community, the Activision-Bungie split has given investors the short end of the stick. Activision and Bungie’s joint statement would have everyone believe Activision is unconcerned with the impact of the break-up. It was mutual. Let’s explore each party’s perspective for context.

            Activision’s Perpective

The Destiny franchise has not turned out to be the blockbuster Bungie had anticipated. Decreasing revenue, and sharing 25-30% of profits with Bungie has made the series a less glamorous asset. The well-documented resistance from Bungie towards Activision’s monetization attempts also probably caused some headaches. These artists.

When compared with the money that Call of Duty brings in, the potential Destiny has would only dwindle in the future. The additional threat posed by the highly anticipated Anthem would hamper future sales of expansions or entries in the series. The revenue from in-game purchases wasn’t enough.

It probably seemed worth the hassle to drop Destiny quick and suffer some losses in the short-term, rather than continue paying Bungie bonuses. No biggie.

            Bungie’s Perspective

 The team at Bungie reportedly popped bottles of champagne at the announcement, and they should. Activision had been breathing down their neck for years to release more games, release games faster, and to make more money from games after release. Their demands were incessant, and they were never satisfied.

The quality of the series had taken a toll from rushed schedules and further compromises with Activision. The reason for its decline was the lack of liberty the developers had over their projects. There was a time when the makers of Destiny expected the franchise to find its place along the likes of Star Wars.

With Activision out of the picture, Bungie can work towards that hope as it sees fit; it can bring Destiny back to its former glory, taking time to produce quality. Additionally, they can further develop the new game for which they received a $100 million investment last year.

            The Investors

As Activision pretends to shrug off its split with Bungie, worsening legal problems may have a harder impact than executives at Activision may have thought. Two more class-action lawsuits have been filed against the company, bringing the total to at least 5.

The class-action lawsuits are being brought on behalf of investors–specifically, those who bought shares between Aug. 2 in 2018 and Jan. 10 in 2019. The lawsuits claim that Activision mislead investors by not informing them of the split earlier, a decision that would be bound to impact revenues, profits, and share price.  The share price was impacted by over 10 percent, resulting in a loss of $3.7 billion in market capitalization.

If you bought shares in the above time frame, you are entitled to participate in the latest recent class-actions raised by The Schall Law Firm and Rosen Law Firm.

Rami Al-Sabeq
Written by
My name is Rami, and I love to write as much as I love to play video games. Ideally, this should mean that I'll write great content on this platform, but I'll let you be the judge of that!

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