In premarket trading on Wednesday, Activision Blizzard shares fell more than 12% as the video game publisher postponed the release of two of its most anticipated titles.

The business did not provide a release date for ‘Overwatch 2' or ‘Diablo IV,' which investors had hoped would help the company recover from a string of sexual misconduct allegations.

The resignation of co-leader Jen Oneal, as well as a quarterly projection that fell short of expectations, weighed on the stock.

According to a business statement, Oneal's departure leaves Mike Ybarra as the studio's only leader, following the termination of more than 20 staffers in recent months. Former President J. Allen Brack was driven out following a lawsuit in California alleging discrimination against women, and the two had taken over jointly.Overwatch 2 and Diablo 4 Delayed - IGN

According to a statement from the firm behind the 'Candy Crush' and 'Call of Duty' franchises, an $18 million fund has been established to compensate victims of inappropriate behavior.

In the current quarter, it predicts adjusted sales of $2.78 billion, which falls short of analysts' expectations.

Activision's total monthly active users dipped to 390 million by the end of the quarter, down from 408 million at the end of June and unchanged from the same period last year, indicating that the pandemic-fueled binge is slowing.

In the third quarter, adjusted sales of $1.88 billion were in line with expectations, while adjusted profit per share of 89 cents exceeded expectations.