(Bloomberg) -- Activision Blizzard Inc. announced plans to slash costs across the company after reporting fourth-quarter sales that missed estimates and delivering a disappointing forecast.
- The largest independent U.S. video-game publisher reported revenue of $2.84 billion last quarter, missing the $3 billion projection by analysts. It expects revenue of $1.18 billion in the current period, short of the $1.48 billion consensus.
- The company is coping with the slump by slashing expenses and refocusing on its core products. Activision expects to report a roughly $150 million expense in connection with the cuts.
- The announcement extends a tumultuous stretch for the video-game industry. Electronic Arts Inc. and Take-Two Interactive Software Inc. both saw their stocks plunge last week after they released earnings.
- Activision said in November that key games such as Overwatch and Hearthstone had suffered a slowdown. Activision also severed ties with game maker Bungie after disappointing sales of the Destiny franchise.
- The stock fell as much as 5 percent in late trading. That adds to an 11 percent decline so far this year.
- Read the full company statement here.
- See Bloomberg coverage of layoffs.
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