Activision Blizzard (ATVI - Snapshot Report), in collaboration with Bungie recently announced that subscribers, who pre-order the game Destiny, will get early access to a beta version that will provide a glimpse of the key features of the game.
The beta version will be available in the market from early 2014 on Sony’s (SNE - Analyst Report) PlayStation 3 & 4 computer entertainment systems. It will also be available on Xbox One & Xbox 360 game consoles from Microsoft (MSFT - Analyst Report).
Bungie expects Destiny to be a great success as the company has loaded the game with enhanced features. Moreover, the expertise that the company has received from Activision has also helped enrich the game content. This apart, Bungie has past experience in this field and is hoping to position Destiny Beta a step ahead of the mighty Halo 3.
Game developers such as Activision Blizzard and Electronic Arts (EA - Analyst Report) are actively adding new features to make the game more interesting and involve more players. We believe that the popularity of these franchises will attract new consumers, which will further boost ATVI’s top-line in the near term.
ATVI’s strong grip on the video game industry works in the company’s favour. The company is the producer of some of the segment’s flagship products. This includes the Call of Duty, Guitar Hero, and Warcraft franchises, in addition to a number of mobile games with operations across the globe. With the strong fundamentals, new collaborations and ever increasing gaming portfolio, Activision is evenly poised for growth.
However, stiff competition from Electronic Arts, Take-Two InteractiveSoftware Inc. (TTWO - Snapshot Report) and Zynga Inc. (ZNGA - Snapshot Report) may pose some challenges. ATVI faces a tough challenge from the soft video game industry performance, which could rationalize growth prospects.
Activision has a Zacks Rank #3 (Hold).