When ‘Diablo IV’ and ‘Overwatch 2’ were revealed at Blizzcon 2019, both Activision Blizzard Inc., and the public, expected to test at least the beta version of the games in 2021. However, in this year’s version of the event, there was no announcement about its launch, but there was a statement. In it, the company confessed that “having them ready will take longer than expected.” This, added to the projections for the last quarter of the year where it is suggested that Not even the launch of ‘Call Of Duty’ will save the company from its stagnation, it sent Activision shares plummeting 14% last Wednesday.
The company, which had not seen such a drop since November 2018, faces a severe reputational crisis on behalf of the demand made in July by the California Department of Fair Employment and Housing for sexual harassment that punctually splashes Blizzard: the division in charge of developing both Diablo IV and Overwatch 2.
The accusations reveal unfair working conditions for women and sustain the existence of a hotel room known as’ Suit Cosby.‘, where the creative director, Alex Afrabiasi, allegedly harassed and maintained relationships with his colleagues.
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Activision, for its part, has not fared well in its way of dealing with the accusations, as it has chosen to question the complaints alleging that they are “old and taken out of context.” This attitude generated a wave of rejection on the part of the employees who through a Twitter account have expressed their disappointment and where, despite the fact that there have been more than 20 dismissals, they demand forceful actions to put an end to certain internal behaviors. Meanwhile, the Securities and Exchange Commission is investigating how the company handled the allegations.
To mitigate Activision’s collapse and improve the company’s reputation, its director, Bobby Kotick, said last week that he will take a 99.9% pay cut, pledged to hire 50% more women and non-binary people in the next five years, and maintains that it will end mandatory arbitration for complaints of sexual harassment and discrimination.
Today, CEO Bobby Kotick announced five changes to improve our workplace:
1) Zero tolerance of harassment
2) Increasing the percentage of women & non-binary people in our workforce by 50% & investing $250 million to accelerate opportunities for diverse talent
(continued)
— Activision Blizzard (@ATVI_AB) October 28, 2021
Despite the fact that in the penultimate quarter the company’s adjusted revenues increased to US $ 1.88 billion and that earnings were US $ 0.72 per share, slightly exceeding the projected figures of US $ 0.70, the chain CNBC ensures that, During 2021, between the launch delays, the cancellation of Blizzcon 2022 and the complaints, the company has seen a total drop in its shares of 28%.
Photos: Activision
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