Latest in Gaming

Image credit:

Forbes: Activision's dependence on declining WoW subs 'potential for a catastrophic situation'


With the recent news of World of Warcraft's struggling subscription numbers fresh on our minds, Forbes investigated WoW's primary shareholder and predicted trouble on the horizon for investors.

"After looking into Activision Blizzard, Inc., we discovered an amazing looking company that is unfortunately almost completely sustained by the revenue it reaps from one game, World of Warcraft," the authors notes. "When considering that the same company has a 60% majority shareholder (Vivendi) looking to sell its shares in the company you get the potential for a catastrophic situation."

Because Vivendi is having difficulty unloading Activision, Forbes says that any sharp decline in World of Warcraft's revenue will drag down Vivendi's stock severely. The authors also note that the company will suffer from the launch of Guild Wars 2: "The bottom line here is that gamers like to start on level playing fields. Gamers love to save money. Gamers are always in a frantic rush to play superior games. These three factors are the main reasons why Guild Wars 2 will win over market share from WoW."

[Thanks to Mike for the tip!]

From around the web

ear iconeye icontext filevr