×
You will be redirected back to your article in seconds

Activision Blizzard Calls Bungie Split A ‘Mutual, Amicable Agreement’

Activision Blizzard’s split with “Destiny” developer Bungie was a “mutual, amicable agreement,” the publisher said during an earnings call on Tuesday.

The two companies announced in January they are parting ways after eight years. Activision Blizzard is now transferring “Destiny’s” publishing rights to Bungie so it can focus on its own intellectual properties. During the earnings call, Activision said it’s confident this is the right decision for both parties.

Bungie gets to focus on the IP that they created and we get to focus on our biggest opportunities and our biggest franchises with our best resources,” said Activision Blizzard president and chief operating officer Coddy Johnson.

Johnson cited three main reasons for the split. One, Activision Blizzard didn’t own the “Destiny” IP, and that lack of control meant it couldn’t create new experiences and new engagement models that lead to new revenue streams.

Second, while “Destiny” is a critically-acclaimed franchise, it wasn’t meeting the publisher’s financial expectations. “As we went through our financial planning for 2019, it indicated that ‘Destiny’ would not have been a material contributor in operating income to our business,” Johnson said.

Lastly, Activision Blizzard said supplementing Bungie’s work was using up one of its scarcest resources — developer talent. Now that it’s no longer “Destiny’s” publisher, those employees will be freed up to work on other projects once the transition period ends.

Focusing on its own intellectual property seems to be a major goal for Activision Blizzard in 2019. The publisher said on Tuesday it’s laying off approximately 775 people — 8% of its 9,600 workforce — as it turns its efforts toward live services and flagship first-party franchises like “Call of Duty,” “Overwatch,” “Diablo,” and “Candy Crush.”

Activision Blizzard net revenue for the fourth quarter of 2018 was $2.38 billion, beating its outlook of $2.24 billion. Net income for the year was $1.8 billion, up from $273 million in 2017.

More Gaming

  • jfk mooonshot ar app artwork

    JFK Presidential Library Releases Moon Landing Augmented Reality App

    The John F. Kennedy Presidential Library has released an augmented reality app (AR) to commemorate the 50th anniversary of the moon landing, and the role President Kennedy played in getting the U.S. to the moon. The app, which is available for free for iPhones and Android, lets users relive the Apollo 11 mission in their [...]

  • 'Ni no Kuni: Wrath of the

    'Ni no Kuni: Wrath of the White Witch' Is Still a Fantastic Anime Adventure

    Six years after it’s original release “Ni no Kuni: Wrath of the White Witch” is coming back with a Nintendo Switch version and remastered edition on PS4 and PC. It’s time for more long-winded, adorable JRPG action. It’s odd since comparing the new version of the Level-5 developed classic with the original game is pointless [...]

  • ‘Dragon Ball Z: Kakarot’ Highlights The

    ‘Dragon Ball Z: Kakarot’ Highlights The Mundane Side of The Anime

    There have been dozens and dozens of games based on the popular anime “Dragon Ball Z.” While most focus on recreating the series’s electric fight scenes, very few have explored the more mundane and humorous aspects of the characters’ lives. Fortunately, “Dragon Ball Z: Kakarot” (releasing on PlayStation 4, Xbox One, and PC in 2020) [...]

  • 'Empire of Sin' is a Bloody,

    'Empire of Sin' is a Bloody, Strategic Take on the Criminal Underworld of 1920s Chicago

    When Paradox Interactive and Romero Games announced their new strategy game, “Empire of Sin,” some fans may have been disappointed. They could have wanted another intensely violent and fast-paced game from John Romero, one of the original creators of “Doom.” They shouldn’t be though as ‘Empire of Sin’ is a deep, violent take on criminal [...]

  • 'Marvel's Avengers' is Crystal Dynamics' Indistinct

    'Marvel's Avengers' is Crystal Dynamics' Indistinct Take on a Comic Classic

    After 22 films in the leadup to “Avengers: Endgame,” the culmination of everything the Marvel Cinematic Universe built up towards, you’d think any other take on the classic team of superheroes would fall flat on its face. New faces would be eclipsed by the likes of Chris Evans’ perfect Captain America, Robert Downey Jr.’s dashing [...]

  • The Inner Machinations of John Wick's

    The Inner Machinations of John Wick's Mind

    Many games have you play as a character but very few let you inhabit their psyche. That’s the aim behind “John Wick Hex,” a strategy game that puts you inside the scenarios found by the titular movie character. And if a choreographed action sequence is nothing more than a combination of well thought out punches [...]

More From Our Brands

Access exclusive content