Activision Blizzard Inc. is under siege. The largest U.S.-based video-game publisher is facing multiple regulatory probes over its workplace culture, but it could soon have another serious problem: its games.
Back in July, the California Department of Fair Employment and Housing sued the company on allegations it had failed to protect female workers from harassment. And last month, the Wall Street Journal reported that the Securities and Exchange Commission has opened an investigation into how Activision Blizzard dealt with employee discrimination issues.
But those scandals don't appear likely to derail the company. In addition to the modest $18 million agreement it reached with the Equal Employment Opportunity Commission last Monday, the most likely outcome of these inquiries is the publisher settling with authorities, paying fines and committing to stricter compliance polices.
A larger problem for Activision Blizzard may be that its games this year aren't capturing the zeitgeist the way they once did. Recently, Baird analysts published a report that revealed searches for “Call of Duty” and “World of Warcraft” were down markedly from last year, falling 32% and 44%, respectively.
To make matters worse, the company's formidable World of Warcraft title is facing unprecedented competition from an unusual source: Amazon.com Inc. Amazon, which has been known for several high-profile gaming failures, put out its latest title, New World, last week. The release appeared to be an instant success, becoming the most-played game of the year on the Steam platform, and overwhelming Amazon's servers, forcing players to wait for hours to get into a session. It seems far-fetched that the game could overtake World of Warcraft, but it
Read more on tech.hindustantimes.com