Blizzard co-founder and CEO Mike Morhaime confirmed that the team cancelled the World of Warcraft followup in an interview with Polygon. "We had created World of Warcraft, and we felt really confident that we knew how to make MMOs," Morhaime told the publication. "So we set out to make the most ambitious thing that you could possibly imagine. And it didn't come together."
Morhaime said the developer didn't "find the fun" or "the passion" in Titan, which led to its cancellation after a reevaluation period.
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"We took a step back and realized that it had some cool hooks," Chris Metzen, senior vice president of story and franchise development at Blizzard, said of the MMO. "It definitely had some merit as a big, broad idea, but it didn't come together."
TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, ATVI's share price has jumped by 26.93%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ATVI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ATVI's debt-to-equity ratio of 0.60 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.99 is very high and demonstrates very strong liquidity.
- The gross profit margin for ACTIVISION BLIZZARD INC is currently very high, coming in at 76.29%. Regardless of ATVI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATVI's net profit margin of 21.03% compares favorably to the industry average.
- ACTIVISION BLIZZARD INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ACTIVISION BLIZZARD INC reported lower earnings of $0.95 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.32 versus $0.95).
- You can view the full analysis from the report here: ATVI Ratings Report