Blizz Form 10-K Annual Report Filed 2/22/13

90 Draenei Shaman
9515
The OP is a idiot.

You can easily tell by the very report that he linked explained that the losses happened in China. The OP being the idiot that he is chooses to ignore that fact because it doesn`t help his crusade.
This is actually NOT what the filings say. They are carefully worded to imply this, to the uninformed readers (I.e. press) while specifically also worded to not state this explicitly.

When reading a 10-K, look for conclusive direct confirmatory statements. Read in between the lines on the rest, and typically assume something other than what's being implied. Virtually all implications can be assumed to be exaggerations, if your search is to find the real truth.
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Maybe if we had free server transfers off imbalanced and empty servers people would stay.


This would only make the problem worse. Try asking for free moves from high pop to low pop realms
Edited by Yzzaml on 4/8/2013 1:26 PM PDT
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90 Dwarf Shaman
10935
04/08/2013 12:03 PMPosted by Dreagan


You are correct. That said it was not all that long ago they were at 12 million subscribers.

The rate of decline is pretty staggering.


12 million is unsustainable. It also was at a period of wow when it was the "angry birds" of the gaming world. Articles in magazines like TIME, the south park episode, wow was the hip and cool thing to play. Now, just like anything, it is no longer hip and cool, so the pop subs have moved on.

For as old as this game is, I would argue that at stabilized subs even around 8M blizzard is doing something right. P2W.. I'm sorry I meant F2P is taking over the casual market anyway.


WoW is doing great, you make some very good points. The people, myself included playing, are for the most part, long term fans. Over the next three expansions, we will see spikes and drops, with the average being between 7.5-8.5 mil, which for a game almost a decade old, is phenomenal. Besides, as good as Blizzard has been doing at putting out quality content......yah.
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11 Draenei Paladin
50
I am curious OP what is with your fixation of Blizzards finances lately? Is there some point you are trying to make and if so please get to it.

Oh now I see,

Maybe if we had free server transfers off imbalanced and empty servers people would stay.


Good luck with that.
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90 Dwarf Shaman
10935
Form 10-K
Annual Report

Filed Feb 22, 2013

http://investor.activision.com/reports.cfm

Blizzard's net revenues increased for 2012 as compared to 2011, primarily due to the release of Diablo III in May 2012 and World of Warcraft: Mists of Pandaria in September 2012. The increase in net revenues was partially offset by lower subscription revenues from World of Warcraft due to a lower subscriber base.

At December 31, 2012, the worldwide subscriber* base for World of Warcraft was approximately 9.6 million, down from a base of more than 10 million subscribers at September 30, 2012, and approximately 10.2 million subscribers at December 31, 2011, with the majority of the decline from the East (where the "East" includes China, Taiwan, and Korea, and the "West" includes North America, Europe and Latin America).


Despite the fact that this is pretty old news, we should thank QQLoud for pointing out how amazing this game is!

Blizzard has done such an amazing job over the years with their 8 year old MMO and managed to hold onto almost 10,000,000 subs.

If it weren't for all the awesome work Blizzard has been doing WOW would be like every other 8+ year old MMO out there.

Kudos to the Blizzard WOW team for continuing to produce the best MMO on the market for 8+ years. What a truly staggering accomplishment.


Damn straight, and with how much fun MoP is.......here's too another 8 years of fun!
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90 Dwarf Shaman
10935


I thought libruls were elitists, k shouldn't we be insisting everyone talk as if they were writing an academic paper at all times.

Or am I behind in my Faux news cycle.


Just keep watching CDNC. They'll tell it to you straight.


lol
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90 Dwarf Shaman
10935
04/08/2013 01:08 PMPosted by Cocoa


Other than lost jobs? Or are they still employing the same amount of people that they did when they had 12 million?

Probably not. A lot of businesses closed completely or downsized quite a bit due to the recession. I love the fact that blizzard hires thousands of employees, nothing is done outside their offices. Can't say the same for all the "WoW killers" out there.


They are also currently hiring.
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90 Human Warlock
9950
That is a staggeringly large net loss during the first 3 months of a brand new expansion. I can only imagine what the quarterly report will say in April/May.

Maybe if we had free server transfers off imbalanced and empty servers people would stay.


The only staggering thing I read from that link was that a nearly decade old subscription based MMO still has nearly 10 million subscribers. This is a staggering milestone in gaming history that we may never see repeated in our lifetime.

It is simply staggering.

Staggeringly.

Stagger.
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90 Blood Elf Paladin
3810
You see where it says the majority of subs lost were in the east? That really dont affect us , so it will be ok. You can come out of the bomb shelter now ,the sky isnt falling.
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90 Human Hunter
7340
You see where it says the majority of subs lost were in the east? That really dont affect us , so it will be ok. You can come out of the bomb shelter now ,the sky isnt falling.

Pssssssssssssssssssssssssssssssssssshhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh.

The Asian Market operates entirely like the NA market don't ya know.
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90 Pandaren Monk
5015
It is simply staggering.

Staggeringly.

Stagger.


Was someone asking about brewmasters?
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04/08/2013 12:08 PMPosted by Barkloud
Blizzard (specifically WoW) as obviously reached it point of "market saturation". The "above average" peak was the ~12-mil around last of BC, early Wrath. This happens. Normalization takes its own time. From zero to 12 million took ~5 years, whereas the dip from 12-mil to 9.6 mil is only, what 2.5 to 3? That's not "staggering" rate of decline at all. And... as the #'s seem to have stabilized from Cata somewhere in the 9-mil to 10-mil area it's not really a decline but merely one leg of a very typical (and reather predictable) market fluctuation of highs and lows that is part and parcel of any business's life.


I completely agree with everything you said.

That said, if your player base has stabilized, why upset the balance by instituting radical gameplay changes? I do not get it.

Why upset your existing player base to look for a hypothetical "new" player base.

Most of the really heated complaints I have read are not coming from those that started in Wrath and Cata, they are coming from Vanilla and BC players.

Seems like Blizz took a pretty unnecessary risk.


The person you quoted here is spot on. The trends we see with the WoW population, even in the period of decline we've seen in the past few years, is far more impressive than its competition.

You bring up a few points in your reply that are worth commenting on:

That said, if your player base has stabilized, why upset the balance by instituting radical gameplay changes? I do not get it.


This summarizes Blizzard's approach. I wouldn't really call anything "radical" - they're just slightly different. But in general, Blizzard wants to continuously improve and alter the game to keep the experience as fresh as they can without changing it too much. "Too much" is relative to the player.

Why upset your existing player base to look for a hypothetical "new" player base.


In general, people who looks at Blizzard's population and point to a number and talk are often looking at it incorrectly. Instead, we need to think about the population in terms of its derivative - i.e. in terms of a rate of change rather than a static number.

The population of WoW - because its so large - is in constant change. When you look at a number, its only the population at that moment. WoW is constantly gaining new players and losing existing players. The combination of the two numbers gets us a rate of change, which happens to be negative at the moment.

This means that old players are leaving faster than new players are joining.

But if we look at ANY mmo game, or any video game in general, we see exactly the same thing - instead we see much more drastic dropoffs and in a much shorter period of time. Lots of people jump onto a game and then fewer and fewer people jump on until there aren't enough new players to overcome the players that are leaving.

If I am a Marketer at Blizzard, i'm probably thinking that the audience I sold to originally is done with WoW, in the same way that I would look at any other game I'm marketing. So, I'd then release expansions or new content to keep older players interested, and do additional advertising to bring new players into the game.

Most of the really heated complaints I have read are not coming from those that started in Wrath and Cata, they are coming from Vanilla and BC players.


People rarely know what will make them happier and people that have been playing that long are one primary thing: BURNED OUT. Unfortunately, there's little short of a brand new game experience (TITAN!) that will keep them around. Are you starting to see Blizzard's plan now?

Name any other video game that you have played non-stop for 8 years.

So in order to maintain the population - read - maintain a rate of growth of ZERO or GREATER, i need to appeal to new audiences and keep content fresh. When the rate of subscription loss is so volatile that almost nothing i do seems to keep old players happy, there's on thing left to do - get new players.
Edited by Mvura on 4/8/2013 1:58 PM PDT
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90 Tauren Druid
9990
04/08/2013 11:54 AMPosted by Barkloud
Aaaaand?


The first 90 days of MOP Blizzard had a net loss of 600,000 subscribers (9/30/12 10.2 million subscribers and 12/31/12 that subscriber number was down to 9.6 million).

That is a staggeringly large net loss during the first 3 months of a brand new expansion. I can only imagine what the quarterly report will say in April/May.

Maybe if we had free server transfers off imbalanced and empty servers people would stay.


Perhaps you should read the report

with the majority of the decline from the East (where the "East" includes China, Taiwan, and Korea,


If you notice MoP still isn't released in those regions yet, so blaming MoP for the subscription loss is pretty absurd, in fact it would be more accurate to say that the lack of MoP is what caused the subscription loss.
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90 Blood Elf Paladin
3810
The Asian Market operates entirely like the NA market don't ya know.


but of course ..what was I thinking!
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90 Night Elf Druid
9820
04/08/2013 11:54 AMPosted by Barkloud
Aaaaand?


The first 90 days of MOP Blizzard had a net loss of 600,000 subscribers (9/30/12 10.2 million subscribers and 12/31/12 that subscriber number was down to 9.6 million).

That is a staggeringly large net loss during the first 3 months of a brand new expansion. I can only imagine what the quarterly report will say in April/May.

Maybe if we had free server transfers off imbalanced and empty servers people would stay.


Sub numbers always drop after the first 3 months.

600k is nothing. If 5 million subs were lost your "sky is falling" crap would matter.
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90 Draenei Death Knight
8220

Probably not. A lot of businesses closed completely or downsized quite a bit due to the recession. I love the fact that blizzard hires thousands of employees, nothing is done outside their offices. Can't say the same for all the "WoW killers" out there.


They are also currently hiring.


They need to hire those what.. 900 ppl they laid off not too long ago then?
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90 Draenei Death Knight
8220
600k is nothing. If 5 million subs were lost your "sky is falling" crap would matter.


You're crazy to think 600k doesn't matter.. that breaks off quite a bit off their profits. 600k subs, at 15$ per month, at 12 months.. 108 million.

doesn't seem like a little bit now does it?
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90 Pandaren Monk
3670
04/08/2013 02:01 PMPosted by Searc
600k is nothing. If 5 million subs were lost your "sky is falling" crap would matter.


You're crazy to think 600k doesn't matter.. that breaks off quite a bit off their profits. 600k subs, at 15$ per month, at 12 months.. 108 million.

doesn't seem like a little bit now does it?


In the grand scheme of things... considering the age of the game and that not everyone is going to like everything new they add? Yeah it is nothing.
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