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Gaming Stocks Fall as Activision Blizzard Sells Rights to Destiny Franchise

Stock MarketsJan 11, 2019 11:25AM ET
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Investing.com - Gaming stocks were mostly down in midday trading on Friday after Activision Blizzard (NASDAQ:ATVI) sold the rights of its Destiny franchise to developer Bungie.

The gaming company fell 10%. The move could cost the company hundreds of millions in revenue and it is unclear why the two companies terminated their 10-year contract early.

“We have enjoyed a successful eight-year run and would like to thank Activision for their partnership on Destiny,” Bungie wrote in a post on its site Thursday. “Looking ahead, we’re excited to announce plans for Activision to transfer publishing rights for Destiny to Bungie. With our remarkable Destiny community, we are ready to publish on our own, while Activision will increase their focus on owned IP projects.”

The news came just a few weeks after Netflix (NASDAQ:NFLX) poached Activision’s former chief financial officer.

Other gaming companies were mixed, with GameStop (NYSE:GME) falling 0.5% and Electronic Arts (NASDAQ:EA) up 0.3%, while Zynga (NASDAQ:ZNGA) slumped 0.7%.

Gaming Stocks Fall as Activision Blizzard Sells Rights to Destiny Franchise
 

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Prince Collins
Prince Collins Jan 11, 2019 2:12PM ET
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also if you game in any capacity it's very clear why they split up, differences in philosophy on the implementation of monetization strategies and growing distrust in Activision by gamers on average. Honestly it was in activisions best interest to see bungie out the door and relinquish the rights to the destiny IP as it had become tainted with words like "cashgrab" and "ripoff" and was only causing them bleed money in the long run, across YouTube, gamer forums and games news media, their has been almost mutual celebration that Activision has finally pulled their claws out of bungie, that's how you know they have almost no consumer goodwill left at this point. Activision share holders had better read between the lines a pull the ripcord before anymore of their money is lost.
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Prince Collins
Prince Collins Jan 11, 2019 1:58PM ET
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the chickens have come home to roost
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