Published January 7, 2010
Tags: ATVI, GME
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.
Published December 30, 2009
Tags: ATVI, ERTS, GME
I stumbled upon this interview with Colin Sebastian, an expert in interactive media, during my morning reading. He echoes some of the sentiments I expressed in my original ATVI summary. Here’s a quick excerpt of the excerpt:
For Activision, it really boils down to the predictability of revenues and high margins compared to many other game publishers. World of Warcraft and Call of Duty are two of the largest entertainment franchises right now, and we don’t see any signs of these games slowing down. In 2010 Activision will bring to market the sequel to one of the most popular PC games of all time, called StarCraft II. They have an expansion pack as well for World of Warcraft in the second half of the year, and the next iteration of Call of Duty. Keeping in mind that this year’s version, called Modern Warfare 2, is on track to become one of the largest entertainment franchise of all time, we expect a billion dollars in retail revenues for the game.
The full link has some other interesting thoughts on ATVI as well as ERTS and GME that might be useful for someone interested in getting into the video game sector right now.