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Regulations/Politics
When talking about regulations, the most severe
example as mentioned before would be China, whose
body of game licensing was shifted to the Publicity
Department of the Communist Party of China, resulting in a halt in
the licensing of new games from March 28, 2018 for 9 months,
which spread fears of further uncertainty in the industry.
Other aspects that could affect Activision more closely are:
Counterparty risks relating to customers, licensees, licensors, and
manufacturers; Intellectual property claims; Piracy and
unauthorized copying of their products; risks and uncertainties of
conducting business outside the U.S.
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Macro Economic Conditions
The spread of coronavirus increasingly affects the
global economic situation whilst policymakers fail to
contain its wildfire-like spread. Stock market has already
seen severe drops, but further harm could be cause if
economic activity slows down further. The Fed responded this
month by cutting interest rates by half a percentage point, with
potential further monetary stimulus expected. If the global
economy enters into a recession, the sales of videogames and
microtransactions are predicted to plummet as they aren’t
considered to be necessities, although their addictive nature
might counteract some of this downturn.
Other factors that could harm the Actvision Blizzard company,
which some of them are mentioned by them could be: Substantial
influence of third-party platform providers over their products
and costs; Rapid changes in technology and industry standards;
competition, including from other forms of entertainment; their
ability to sell products at assumed pricing levels; their ability to
attract, retain, and motivate skilled personnel; their ability to
increase the number of users they have by taking out an
outstanding game.
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