The misery continues to pile on for the video game industry after its top stocks suffered double-digit declines last Wednesday. Bloomberg reported on Friday that Activision Blizzard, the video game publisher of blockbuster franchises such as "Call of Duty," "Diablo" and "Warcraft," plans to announce on Tuesday a round of jobs cuts "which could number in the hundreds." The layoffs would be part of a restructuring effort as the company faces sluggish sales, Bloomberg reported, citing unnamed sources familiar with the matter. Activision Blizzard did not immediately respond to a CNBC request for comment on Bloomberg's report sent outside regular office hours. Earlier in January, Activision's stock was sent tumbling 7 percent in after-market hours after it announced a split from game studio Bungie, which developed the popular "Destiny" game franchise.

Activision had employed "an entire team full of Destiny support staff" across functions such as public relations, marketing and social media, according to a report by gaming news site Kotaku. Citing two people close to the company, the Kotaku report said there have been limited opportunities for those staff members formerly tied to Destiny to shift to other teams, and members from that division are "perhaps the most worried about their job security."

Activision shares have lost nearly half their value in a little over four months. The stock has fallen more than 48 percent since reaching a 52-week intraday high of $84.68 per share on Oct. 1 to trade at $43.41 per share by Friday's market close. The company has also seen a series of high-profile executive shakeups in recent months. Its former chief financial officer, Spencer Neumann, was hired as CFO at Netflix.

Concerns in the video game sector