Activision Blizzard’s (ATVI - Analyst Report) Call of Duty: Ghosts,has already emerged as one of the most sought after pre-ordered titles for the next-generation consoles. Moreover, with the launch of Microsoft’s (MSFT - Analyst Report) Xbox One coming up in a couple of days’ time, the demand for the game is expected to increase even more.
The recent launch of Sony’s (SNE - Analyst Report) new Playstation in North America has helped the game to quickly reach the No. 1 position.
This apart, it is the top selling title in retail sales on the new platform and also the leading pre-reserved Xbox One title at several retailers such as GameStop, Walmart, Target and Best Buy. The gaming rating firm “metacritic” has given a score of 74 for the game and the “hardcore gamer magazine” has given it a score of 95, reflecting positive reviews from all fronts.
The all new Call of Duty: Ghosts is the videogame edition of “The Expendables.” Although the acting and the storyline of this game is above average, nevertheless the engaging nature of the game as well as the explosions can be enjoyed. Activision’s third quarter revenues of $657.0 million also benefited from the robust performance of games such as Call of Duty, Skylanders, World of Warcraft which is expected to be the case for the next few quarters.
Moreover, recent releases of Skylanders SWAP Force, Cabela’s African Safari, and Wipeout Crash and Burn, SpongeBob SquarePants, Plankton’s Robotic Revenge and Teenage Mutant NinjaTurtles are expected to boost the top line for the company.
The company has raised its full year revenue guidance to $4.29 billion (from prior outlook of $4.25 billion) based on strong performance from its major franchises, strong sales of Call of Duty, as higher consumer spending on new consoles is helping to increase the sales of this game.
In light of the abovementioned facts, we believe that Activision holds a strong position, and is expected to gain from superior product offering, although competition from rivals such as Electronic Arts (EA - Analyst Report) may rationalize growth prospects.
Currently, Activision Blizzard has a Zacks Rank #2 (Buy).