Game from Blizzard delayed

Activision Blizzard (ATVI) shares fell 12% in the post-market on Tuesday after the company disappointed investors with a delay in the release of two key games and a below-expected holiday quarter forecast.

Activision on Tuesday reported its financial results for Q3 2021 and gave its forecasts to investors. Activision Blizzard shares, down 16.35% YTD, fell 12% in the post-market on Tuesday.

The biggest toy maker with a market value of $60 billion was sued for sexual discrimination and workplace harassment. The Activision denied some of the allegations in the lawsuit and took steps to punish those accused of harassment. Last month, the company fired more than 20 employees and reprimanded 20 workers.

For Q3 2021, Activision's earnings per share fell 6% from a year ago to $0.91, but came in above analysts' forecasts of $0.76.

Revenues rose 19% to $1.88 billion, in line with analysts' forecasts.

The company's monthly active user unit (MAU) stood at 390 million at the end of the quarter.

Among the good news during the report was the announcement of a new version of the Call of Duty game this week. The mobile game Diablo Immortal, according to the company, will be released in the first half of 2022.

However, Activision Blizzard has disappointed its investors with the news that Overwatch 2 and Diablo IV, two of its most anticipated games, have been delayed. The company refused to disclose their exact release date, while stating that it "does not expect a material contribution from either game in 2022". The departure of Blizzard co-CEO Jen O'Neill at the end of this year, announced during the report, does not add to the certainty for investors.

The video game maker has given a fourth holiday quarter revenue forecast of $2.78bn, below average analyst forecasts of $2.95bn. An earnings per share forecast of $0.62 for the current quarter suggests a decline.