Activision BlizzardATVI is expanding its mobile gaming portfolio through the launch of King's role playing game (RPG), Legend of Solgard .
Based on Nordic Folklore, Legend of Solgard has been developed by Snowprint Studios. The game follows Embla and her epic fight to stop Ragnarok in the world of Solgard . It can be downloaded free from Apple App Store and Google Play.
King is well-known for its Candy Crush game, the demand for which continues to remain solid. In the last reported quarter, monthly active users (MAUs) for Candy Crush were stable sequentially and grew year over year, while time spent per daily active user was strong at 36 minutes.
However, RPG as a genre is more intense compared to casual games like Candy Crush . RPG demand unique features in terms of settings, character building and exploration of the gaming world, quests, various game play modes, character progression, dramatic narrative and others.
Since Legend of Solgard is King's first RPG, it would be interesting to watch how much the game scores in fulfilling all these criteria, which we believe would be crucial in attracting hard-core gamers.
Mobile Gaming Contribution Rises
Activision is increasingly banking on mobile platform to drive top-line growth. In the last quarter, mobile and ancillary revenues (31.7% of revenues) increased 5.7% year over year, while revenues from console (34.4% of revenues) and PC (27.5% of revenues) declined 0.5% and 11.2%, respectively.
Activision Blizzard, Inc Revenue (TTM)
Activision Blizzard, Inc Revenue (TTM) | Activision Blizzard, Inc Quote
King had two of the top 10 highest-grossing titles in the U.S. mobile app stores for the 19th quarter in a row. Candy Crush Saga was the number one grossing game on mobile in the United States in the last reported quarter.
Activision has teamed up with China-based Tencent TCEHY to develop an all-new Call of Duty mobile game for the Chinese market - world's largest market in terms of revenues and player numbers - according to research firm Newzoo.
China accounts for more than one-quarter of all global game revenues in 2018, reaching an estimated $38 billion. Per Newzoo, mobile is the dominant force in China and it is expected to generate 61% of revenues in 2018. Mobile contribution is anticipated to be 70% of the market by 2021.
The new Call of Duty mobile game title will be free-to-play. It will also feature Call of Duty characters, maps, modes and weapons from across the franchise.
We believe Activision's expanding mobile game portfolio will strengthen its competitive position against the likes of Electronic Arts EA , Zynga ZNGA , Gluu Mobiles and others.
Activision currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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