Activision Blizzard (
recently unveiled a new expansion pack for its popular role
Reaper of Souls
. However, Activision did not provide the exact release date. We
believe that the new expansion pack will further boost
's popularity in the near term.
The pack introduces a new class of warriors in the game known as
"The Crusader" and brings back Malthael as the antagonist.
Reaper of Souls
increases the game's level cap to 70, features new adventures and
two absolutely new game modes called Loot Runs and Nephalem
Originally released for Windows and
Macintosh operating systems in May 2012, Diablo III received
tremendous response from gamers, making it the fastest-selling PC
game of all times.
Activision is set to release Diablo III on
PlayStation 3 as well as on Microsoft's Xbox 360 entertainment
system on Sep 3. Both the console versions will be priced at
$59.99 and are expected to release in the U.S., Canada,
Spanish-speaking Latin America, Europe, Australia, and New
However, Activision announced that the game will not be available
on the upcoming console PlayStation 4 from Sony until 2014. The
company also did not provide any details about the availability
of the game on
We believe that Activision will continue to release downloadable
contents ("DLCs") and expansion packs for its major franchises.
Since the DLCs and expansion packs offer new content, they help
aging gaming franchises such as
Call of Duty
to remain fresh for a long time.
Another major benefit of these expansion packs is their cost
effectiveness. The content packs are mostly delivered online,
which cost less than the traditional physical format, as they
require minimum packaging cost. This low-cost feature will not
only attract more customers but will also drive Activision's
profitability over the long term.
Activision is expected to benefit from its strong product
pipeline in 2013. The upcoming release of its blockbuster
Call of Duty: Ghosts
presents a significant growth opportunity in the upcoming holiday
season. Going forward, the higher mix of digital revenues is
expected to help margins as well.
Currently, Activision Blizzard has a Zacks Rank #1 (Strong
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