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Activision Launches Devastation DLC

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Activision Blizzard (ATVI - Free Report) recently released a second expansion pack called Devastation for Call of Duty: Ghosts for Microsoft’s (MSFT - Free 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 - Free Report) and Take-Two Interactive Software (TTWO - Free Report) may rationalize growth prospects, going forward.

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

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