Gamestop (GME) is one of the market’s bigger dogs today after revising earnings down to $1.25 – $1.29 for Q4 2009. This could be bad for ATVI, but as we’ve espoused here since beginning our coverage of Activision, it is specific titles that are more immune to economic cycles. As we alluded to in our earlier post this morning, Modern Warfare 2 continues to sell at exceptional levels, even as video game retailers are making excuses as to why they are floundering.
Our prediction here is that the bad weather around the holidays coupled with the consumer’s increasing propensity to shop online is what is ultimately going to hurt GME, but leave ATVI unscathed.
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