The following thread was posted by a user and replyed by other users:
Ok folks I see a ton of off the cuff numbers about how rich blizzard is. I would be willing to bet not a single one read the annual report. So since servers are down see if you can follow what happened after the Merge with Activison
You will note the big cash cow is MMORPG it also is where the single largest capital investment has been. After reading the report it also became very clear why the bandaid was applied rather than fix the issue with instance servers months ago. Activision Blizzard lost their a$$ on outside investments when the stock market tanked out. They also have had huge expenses on stock buy back to prop up a plummeting share value.
Draw your own conclusions though.
Not even close to Microsoft.
Not sure where you are getting the "plumetting stock value". Their shares are up 20% over the last 8 months.
They have a $100MM monthly cash flow, low operating costs, and no significant debt.
I think they'll be fine.
Look at Dec to Jan after the drop in Nov when the economy tanked out... Their buy back was started then and has been accounted on the annual report posted. A drop from 11.00 or so a share to 8.00 is quite significant.
This is important because regardless of the heat customers bring it pales when compared with investor pressure.
Much of that drop is probably also related to their investment drops as well.