Activision Blizzard Inc.
) has collaborated with Disney Interactive, a division of
Walt Disney Co.
) for the production and distribution of its
video game. Disney Interactive provides a broad portfolio of games
for console, mobile and social platforms.
The game features Ralph as the protagonist who along with
"Fix-It Felix" embarks on a mission to protect their friends and
save their home from "Cy-Bug" invasion. Players have to journey
through different levels in the game (Sugar Rush, Hero's Duty, and
Fix-It Felix, Jr.), solving the enthralling puzzles. The game can
be played in story campaign and two-player co-operative mode and
will be available on Nintendos' Wii, Nintendo 3DS and Nintendo DS
The game is expected to release in November, along with the
namesake animation movie. Activision has a history of developing
games based on Hollywood films and
Transformers: Dark of the Moon
are a few names that come to the mind instantly. While the
game was well received by the gamers,
failed to live up to expectations.
Buoyed by the success of
, the company is set to release
Transformers: Fall of Cybertron
later in the year. Additionally, Activision plans to release
The Amazing Spiderman
this year, based on the Spiderman movie that has a huge fan
following. Thus, going by the response that Activision has received
from the earlier movie-based games, it is difficult to predict the
However, looking at Activision's portfolio of games, it is
evident that the company is looking at a strong 2012. Its
initiatives to strengthen its Call of Duty and Skylanders portfolio
through the launch of new versions and content packs would be
beneficial in the long run. Moreover, the revival of some of its
old franchises, like
, is expected to act as a tailwind. Activision's foray into the
mobile gaming market, through the launch of
World of Warcraft
should also be a long-term positive.
However, softness in the video game industry and Activision's
limited presence in the social gaming market coupled with
significant competition from
Electronic Arts Inc.
Take-Two Interactive Software Inc.
) are the near-term headwinds. Moreover, the lack of new titles
(not sequels or downloadable contents) and over-dependence on old
franchises, particularly on
Call of Duty
World of Warcraft
, are the other challenges going forward.
We have a Neutral recommendation on Activision in the long term.
Currently, Activision Blizzard has a Zacks #3 Rank, which implies a
Hold rating in the short term.
ACTIVISION BLZD (ATVI): Free Stock Analysis
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