Back to top

Analyst Blog

Activision Blizzard (ATVI - Snapshot Report) recently released a second expansion pack called Devastation for Call of Duty: Ghosts for Microsoft’s (MSFT - Analyst Report) XBox One and XBox 360. Devastation will be available on other platforms such as PCs, PlayStation 3, and 4 from May, 2014 onwards.

Devastation is available for a price of $14.99. However, the Call of Duty: Ghosts DLC Season Pass, which comprises all four Call of Duty: Ghosts DLC Packs including the latest one, is available at a discounted price of $49.99.    

Activision continues to launch downloadable content (DLC) packs frequently in order to keep the franchise fresh as this not only maintains existing user base but also attracts new gamers.

The new expansion pack introduces the tactical 2-in 1 Ripper, which can convert from a SMG to an Assault Rifle and vice-versa and that too in the middle of the action. It also features four new maps namely Ruins, Behemoth, Collision and Unearthed.  Moreover, the pack also introduces the movie monster Predator. Additionally, it will also include the second episode of Extinction called MayDay.

The Call of Duty series was launched in 2003. Per Activision, the franchise’s latest release Call of Duty: Ghosts launched in Nov 2013 turned out to be the best selling game on the next generation PS4 and Xbox One consoles in the fourth quarter of 2013. The company launched the first DLC pack for its Call of Duty series known as Onslaught for Call of Duty: Ghosts in January, 2014.

Online playing time by all Call of Duty users across the globe exceeded 4 billion hours during the last quarter, thus allowing the franchise to generate more revenues in a single year than any other console game has in the past.

Activision is expected to benefit from its strong product pipeline in 2014. The upcoming release of its blockbuster franchise Call of Duty: Sledgehammer presents a significant growth opportunity. Going forward, the higher mix of digital revenues is expected to help margins as well.

Activision is expected to gain from superior product offerings, although competition from rivals such as Electronic Arts (EA - Analyst Report) and Take-Two Interactive Software (TTWO - Snapshot Report) may rationalize growth prospects, going forward.

Currently, Activision has a Zacks Rank #3 (Hold).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%