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Activision Faces Class Action Lawsuit For Insider Trading

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  • Activision Faces Class Action Lawsuit For Insider Trading

    Read Article here...

    So what companies can YOU think of that ship software completely un-fit to be on the shelves, while immediately realizing income for products they haven't finished and showing fudged financial statements?

    I know this is only a small part of what was in the article, but it's the part that personally I'm the most interested in...

    If you bought a new keyboard and were missing a few keys and the ones that were there didn't produce the proper letter when pressed, would that be acceptable?

    If you bought a new vehicle and the power windows didn't work, would you smile while the dealer said... "We're working on a patch, we can't tell you any more. We can't tell you when it will be out. And we can't tell you if it will make your windows work properly." would you have any faith in that auto manufacturer ever again?

    Why does this become acceptable when it comes to software? Does it only count that the cover artwork on the box is nice, and the CD is shiny and round? Does what you're actually buying, the code, need to function properly?
    Diplomacy is the art of saying "good doggie" while looking for a bigger stick.

  • #2
    Re: Activision Faces Class Action Lawsuit For Insider Trading

    This could get interesting.

    Giving false financial statements is one thing, and releasing a buggy game is another.

    False statements that inflate a stock price artificially is something that is very punishable, but releasing a software product before it's ready is something altogether different. Consumers speak with their pocketbook, and knowledge about a shoddy game gets widespread pretty fast. They pay for it in the end I guess, but at the same time, releasing those games does (initially) lift sales figures, which are reported to the street, and then inflate stock price...

    I'm not sure what the real answer would be. Maybe give the SW devs their own timetable? Make any software company bring the devs to the table to see what's really going on? Maybe have protections for whistleblowing SW devs?

    Interesting article though... that class action might not go anywhere, but it might open the eyes of the publishers a little....

    too many questions..

    hmm

    Comment


    • #3
      Re: Activision Faces Class Action Lawsuit For Insider Trading

      Originally posted by fr1j0l3
      This could get interesting.

      Giving false financial statements is one thing, and releasing a buggy game is another.

      False statements that inflate a stock price artificially is something that is very punishable, but releasing a software product before it's ready is something altogether different. Consumers speak with their pocketbook, and knowledge about a shoddy game gets widespread pretty fast. They pay for it in the end I guess, but at the same time, releasing those games does (initially) lift sales figures, which are reported to the street, and then inflate stock price...

      I'm not sure what the real answer would be. Maybe give the SW devs their own timetable? Make any software company bring the devs to the table to see what's really going on? Maybe have protections for whistleblowing SW devs?

      Interesting article though... that class action might not go anywhere, but it might open the eyes of the publishers a little....

      too many questions..

      hmm
      Software is how these companies make their money, it's what their investors are investing in. A company that does not get games out on schedule will most likely NOT meet their earnings estimates. The result of that is a lack of investor confidence and a drop in stock prices. I don't think selling work to one person at full price that isn't finished yet reporting from the financial standpoint that the product is done and released while burying future development (patch) costs would be a legal practice. I'm not sure.

      A company can either issue false reports, or better yet, just release unfinished software as an effort to meet the numbers for their investors at the expense and sacrifice of the consumers.
      Diplomacy is the art of saying "good doggie" while looking for a bigger stick.

      Comment


      • #4
        Re: Activision Faces Class Action Lawsuit For Insider Trading

        omg absolutly true Apophis and i think UBI soft need to watch their step if this goes through. there current game lockon that was realeased is a complete joke as reguards to its buggs and whats wrong with it. and when you ask ubi soft they become abrupt and say that we are working on a patch yadda yadda. well i payed 30.00 for the game i did not pay for the gake to only work online. what if i dont have an internet connection.

        i agree this is ridiculous that the software companies have been getting away with this for too long. i hope they all get sued for this absolute crap heap they are producing. just profit no quality.


        www.TeamElement.com

        Comment


        • #5
          Re: Activision Faces Class Action Lawsuit For Insider Trading

          So what should be done?

          It is an issue, but what could happen (that is not happaning now) to help avert this?

          Marketing folks have always been prone to be a bit overzealous in promoting products.

          SW engineers are usualy stuck with unrealistic deadlines because of project managers working to market forcasts. (holiday season, competitor game release, etc)

          SW company CEOs are probably going to be optimistic about game development progress and title release dates. Where do you draw the line of "optimism" and "lying"?

          What methods are in place in SW companies like microsoft and red hat? Are they held to higher standards because they aren't selling "just" a game?

          ISO9000 is a certification we use to help show that we are actively trying to better our processes, and that we follow industry-standard development processes. Is there something like this in place in the game industry, or should ISO9000 be accepted?

          I know, a lot of questions... I'll read more on that site apo linked to. Just thought I'de air it out, see what ideas are floating out there...

          Comment


          • #6
            Re: Activision Faces Class Action Lawsuit For Insider Trading

            I wonder what the effect of a watchdog group would be. Obviously they would need to be powerful enough to get the notice of bigger press organizations. I'm just thinking if someone could track various software or gaming companies and then turn public opinion against the worst offenders, it might sway these companies to try a little harder.

            I'm just not sure what kind of government or industry regulation would work or be acceptable here. As long as the consumers are willing to shell out the bucks the industry is going to exploit what they can to get those bucks.
            [volun]

            Comment


            • #7
              Re: Activision Faces Class Action Lawsuit For Insider Trading

              Software is a new industry. Competition will weed out companies who fail to deliver quality products on time. No government watchdog required.

              Comment


              • #8
                Re: Activision Faces Class Action Lawsuit For Insider Trading

                Originally posted by fr1j0l3
                What methods are in place in SW companies like microsoft and red hat? Are they held to higher standards because they aren't selling "just" a game?
                Feh, microsoft can't decide if, when, or what they are going to release six months from now. As for redhat they basically take what open/free software is out there and package it all up which is somewhat more predicable since they have done so many times over the past decade.

                Humans are simply not very good at making reliable software.

                Comment


                • #9
                  Re: Activision Faces Class Action Lawsuit For Insider Trading

                  Humans are simply not very good at making reliable software.
                  A merge of science and art ;)

                  I agree

                  Comment


                  • #10
                    Re: Activision Faces Class Action Lawsuit For Insider Trading

                    Originally posted by leejo
                    Software is a new industry. Competition will weed out companies who fail to deliver quality products on time. No government watchdog required.

                    since the days of falcon one the software companies have screwed up the flight sims. and patch after patch was needed. lomac is worse. taking a step back is not good enough. companies are not being weeded fast enough and the consumer is the guy getting it i the ass again.


                    www.TeamElement.com

                    Comment


                    • #11
                      Re: Activision Faces Class Action Lawsuit For Insider Trading

                      As I understand it, the lawsuit does not at all deal with products that have to be patched at a later date (like 75% of games) but rather ones that are so unfinished that they will be returned and activision will have to give customers their money back. Activision didn't include these returns in their statements, but traded shares when they knew about them which is insider trading.

                      Also note
                      there's a good chance it won't go anywhere, as class action suits are part and parcel of day to day business in the USA, and most never get past an initial hearing
                      Wintermute

                      Play EVE online. It's like being an accounting addict in space.

                      Comment


                      • #12
                        Re: Activision Faces Class Action Lawsuit For Insider Trading

                        Originally posted by Wintermute
                        As I understand it, the lawsuit does not at all deal with products that have to be patched at a later date (like 75% of games) but rather ones that are so unfinished that they will be returned and activision will have to give customers their money back. Activision didn't include these returns in their statements, but traded shares when they knew about them which is insider trading.

                        Also note

                        who said it would go anywhere. but it is odvious that there is widespread unease about the way consumers are being ****ed.

                        and games that have patches released a week after the game was released because they were insufficient are in my opinion not finished.


                        www.TeamElement.com

                        Comment


                        • #13
                          Re: Activision Faces Class Action Lawsuit For Insider Trading

                          Originally posted by DudeMan
                          who said it would go anywhere. but it is odvious that there is widespread unease about the way consumers are being ****ed.

                          and games that have patches released a week after the game was released because they were insufficient are in my opinion not finished.
                          I wonder with the ease of distribution we have now with the Internet, that the companies are more inclined to take advantage of it and release products before they are ready KNOWING they can push updates out after the fact.
                          Diplomacy is the art of saying "good doggie" while looking for a bigger stick.

                          Comment


                          • #14
                            Re: Activision Faces Class Action Lawsuit For Insider Trading

                            Originally posted by Apophis
                            I wonder with the ease of distribution we have now with the Internet, that the companies are more inclined to take advantage of it and release products before they are ready KNOWING they can push updates out after the fact.

                            i totally agree but the point there is, i am paying for a game at the same price for less of the quality. and more over i have to spend time downloading just so that i cna have a decent game. there really does need to be a watchdog out there.

                            and what about people who dont have internet access granted most do now but it leaves a Lacuna of the people that dont playing a half done game and paying full price.

                            a few of my friends who dont have access regularly rely on me to burn patches to CD and give them over.


                            www.TeamElement.com

                            Comment


                            • #15
                              Re: Activision Faces Class Action Lawsuit For Insider Trading

                              This is kind of off topic, but with the internet's ease of use for pushing updates possibly allowing game companies this leverage, isn't it odd that the internet is also largely responsible for pushing jobs overseas?

                              coding, medical trascriptions, etc... Thisngs that BEFORE the internet was all high-speed were not feasible, but now they are....

                              Comment

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