Activision Publishing, a wholly owned subsidiary of
Activision Blizzard Inc.
(
ATVI
) recently announced that the new Spider-Man video game will be
available on June 29, 2012. Developed by well known game studio
Beenox, the new game bears the same title
The Amazing Spider-Man
as Sony Entertainment's upcoming "Spidey" flick.
The Amazing Spider-Man
will be available on
Microsoft's
(
MSFT
) Xbox 360,
Sony's
(
SNE
) PlayStation and Nintendo's Wii, 3DS and DS handheld systems.
Activision is scheduled to release the Windows PC version on August
10, 2012.
The new installment narrates the post-movie adventures of Peter
Parker based on the stories written by Seamus Kevin Fahey. The game
features web rush mechanic technology, which allows players to show
a host of new moves in the game.
Although Spider-Man remains one of the most popular comic-book
characters developed by Marvel Entertainment LLC, a subsidiary of
The Walt Disney Company
(
DIS
), its video game adaptations such as
Web of Shadows
,
Friend or Foe
,
Battle for New York
and
Shattered Dimensions
received mixed reviews.
Shattered Dimensions
, released in 2010, received good reviews, but the 2011 release of
Spider-Man: Edge of Time
saw dismal reviews from critics primarily due to lack of
web-slinging elements and action, which are considered essential
for Spider-Man games. It therefore failed to generate much fan
following.
Activision, however, claims that the free-roaming web-slinging
features will return in the new game, and this will definitely
increase its attraction, in our view. However, we believe that the
new game will continue to face stiff competition from the Batman
franchise developed by Rocksteady Studios.
Our Recommendation
We believe that Activision has a strong product pipeline for
2012. The company's initiatives to strengthen its major franchises
such as
Call of Duty
and
Skylanders
through the launch of new versions and downloadable content packs
will be beneficial over the long run.
The company's initiative to revive some of its old franchises,
such as Diablo, is also expected to act as a tailwind. Most
importantly, Activision's foray into the mobile gaming market is
expected to be a long-term positive.
However, the softness in the video game industry and increasing
competition in most of the markets (including mobile) remains a
concern. Moreover, lack of new titles (not sequels or downloadable
content) and overdependence on the old franchises, particularly on
Call of Duty
and
World of Warcraft
, are the other headwinds 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.
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