Activision Blizzard Inc.
) has two downloadable content packs (DLC) to offer to the gamers
, the action-revenge game. The two DLCs are Colossal Mayhem
(releasing today) and Excessive Force (releasing on May 29,
Both the DLCs are laden with new and improved weaponry that help
the protagonist of the game Sgt James Heller to hunt and kill the
arch enemy, Alex Mercer. The DLCs will be available through
) Xbox LIVE Marketplace for its Xbox 360 gaming system. For the
) PlayStation 3 gamers, the DLCs will be available in the
, the first version, had sold 1.2 million copies since its release
in June 2009, and the company expects
to outshine the above figures. The game has got a commendable
response after its release on April 24, 2012 in the U.K. as it
topped the charts in terms of units sold.
Despite the initial response,
saw a decline in first-week sales figures when compared with its
. Though the U.S. figures were not available, analysts believe that
the latest version of the game won't attract the same response as
Activision's launch of the content packs is expected to give the
necessary boost to
sales. Moreover, Electronic Entertainment Design and Research
(EEDAR), a video game market research firm, estimates that given
the increasing popularity among Xbox 360 and Play Station 3 console
owners, DLCs will generate $1.0 billion in sales in 2012.
Activision, with its famous franchises and timely content pack
releases, is expected to grab a chunk of estimated DLC sales.
Electronic Arts Inc.
), which also has some of the famous franchises of the gaming
industry in its kitty, would also be targeting a share in the
We believe that the release of Activision's famous franchise
games and their subsequent content enhancements will continue to
benefit the company in the forthcoming quarters, driving its
Additionally, the company is scheduled to release its fiscal
first quarter 2012 results after market closes today. Activision
has outperformed the Zacks Consensus Estimate by an astounding
191.4% over the last four quarters and we expect yet another
earnings beat from the company.
We expect that the company's continued initiatives to expand in
the digital online business segment will prove beneficial in the
near term. A healthy product pipeline with
, the squeal of
Call of Duty Black Ops 2
will provide the necessary support to the company's guided top-line
and bottom-line figures in 2012. Moreover, Activision's foray into
the mobile gaming market is expected to be a long-term
However, the softness in the video game industry and
Activision's limited presence in the social gaming market coupled
with significant competition from EA and
Take-Two Interactive Software Inc.
) keep us Neutral on the stock over the long term.
Currently, Activision Blizzard has a Zacks #3 Rank, which
implies a 'Hold' rating in the short term.
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