Activision Blizzard Inc. (ATVI - Free Report) recently released the much awaited online multiplayer game Destiny 2 on Sony’s PlayStation4 (PS4) and Microsoft’s (MSFT - Free Report) XBox One consoles. The game is available at a retail price of $59.99.
The PC-version of Destiny 2 is set to release on Oct 24. This is the first non-blizzard game that will be launched for PCs through Blizzard's PC gaming platform, Battle.net.
The company has two extensions planned for this game. The first one, The Curse of Osiris, is expected to be launched in December 2017, per media reports.
Further, Destiny 2 fans will be treated with Destiny 2 – Game + Expansion Pass Bundle priced at $89.99. Destiny 2 Digital Deluxe Edition and Limited Edition are both priced at $99.99. The Collector’s Edition, which is priced at $249.99, will feature “a fully-wearable Destiny 2 – Frontier Bag, Expansion Pass, premium digital content and a Cabal-themed Collector’s Box.”
We believe the new title will help to sustain the momentum in Activision’s shares, which have gained 77.2% year to date, significantly outperforming the industry’s46.7% rally.
Destiny 2 – A Key Growth Driver
Destiny- the first title under Activision-Bungie’s 10-year deal – developed by Bungie of Halo fame and published by Activision was released on Sep 9, 2014. Reportedly, it achieved over $500 million in pre-order and first day sales. Moreover, in the first month, the game sold 6.3 million units, which generated $47.5 million in revenues. However, the series never had a PC version.
With the launch of Destiny 2 on PCs, the company will be able to cater to a broader audience. The title has already received positive feedback from most of the reviewers, which include IGN, GameSpot and Metacritic.
In the last earnings conference call, management noted Destiny 2’s beta and pre-orders have fared much better than what the first Destiny achieved during its pre-launch. It also stated that Destiny 2 full game pre-orders “have the highest digital mix in Activision's history.”
The attractiveness of the game is further reflected in the number of awards it has won or has been nominated for. Destiny 2 won in the “Best PC Game” category of “Game Critics Awards: Best of E3 2017”. The game has also won the title of “Best Multiplayer Game” and “Best Social / Online Game” at Gamescom Awards 2017.
Activision’s expanding franchise portfolio that includes offerings like StarCraft, World of Warcraft, Diablo, Hearthstone and Heroes of the Storm will drive growth in the long haul. Recently, the company also released the Call of Duty: WWII Private Multiplayer Beta for pre-order customers on PS4 and Xbox One.
We expect Call of Duty: WWII and Destiny 2 to be a big revenue driver going ahead. These titles also provide a competitive edge over the likes of Electronic Arts (EA - Free Report) and Take-Two Interactive Software Inc. (TTWO - Free Report) who are stepping up their efforts for the holiday season.
Reportedly, Take Two will launch the new NBA 2K18 in September 2017 and WWE 2K18 on Oct 17. EA also has a strong pipeline of new launches, which includes the sequel of the immensely popular action packed game Star Wars Battlefront to be released worldwide on Nov 17.
Currently, Activision sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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