Tue, Jun. 16, 11:38 PM
- Stocks of videogame makers have been on a run heading into this year's E3 conference, but will they have anything left for the holiday season?
- Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI) are up 30% and 22% YTD respectively -- but are also trading at 21 times and 18 times forward earnings, well above average. Nintendo (OTCPK:NTDOY) and Sony (NYSE:SNE) have risen more than 50% in Tokyo trading.
- There's still tailwinds to come, Dan Gallagher says, including the shift to digital sales and the migration to next-gen consoles, not to mention the potential of virtual reality.
- This E3 is heavy on the games -- a natural outcome of a bigger installed base for new-generation Xbox One and PlayStation 4 consoles.
- Meanwhile, digital game sales ($979M in May) have increased to four times physical new game sales, meaning better margins.
- Previously: Sony's PS4 gains from new exclusives, preferred game windows (Jun. 16 2015)
- Previously: Ubisoft previews new 'South Park' game, range of sequels (Jun. 15 2015)
- Previously: EA gives first in-game look at 'Star Wars: Battlefront' (Jun. 15 2015)
- Previously: Microsoft bringing Xbox 360 games to One, Minecraft to HoloLens (Jun. 15 2015)
Tue, Jun. 16, 2:44 PM
- Activision Blizzard (NASDAQ:ATVI) made some of the key news at Sony's (NYSE:SNE) E3 presentation last night, as it effectively switched its primary preferred platform for the huge Call of Duty game series to the PlayStation 4 -- one of a few switchovers and exclusives that should be an extra shot in the arm for the market-leading console.
- Call of Duty: Black Ops 3, due out Nov. 6, will offer its map packs and other downloadable content to PS4 users first in the coming year -- a switch from that content going to Microsoft's Xbox for an exclusive window. Activision will also send new Destiny DLC to the PS4 first.
- Along with its own in-house exclusives, like Uncharted 4: A Thief's End, Sony's will be the first platform to get Star Wars content for Disney Infinity 3.0 (NYSE:DIS), and first to see Square Enix's Final Fantasy 7 remake and Hitman.
- Previously: Sony expands PlayStation Vue offering to San Francisco, L.A. (Jun. 16 2015)
Mon, Jun. 8, 11:59 PM
- In a look-ahead to this year's Electronic Entertainment Expo, Wedbush has its eye on a number of companies, but none more so than console battlers Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE).
- The team (Michael Pachter, Nick McKay and Alicia Reese) highlights a few "what to watch" notes for the consoles: price cuts for the current-gen consoles (Xbox 360 and PS3); no price cuts for next-gen (Xbox One and PS4) as they expect the focus will be on new product bundles; a virtual-reality interface-off between the two; and a battle of notable games (and possible exclusives) on each.
- Among game publishers, they're looking to Activision Blizzard (NASDAQ:ATVI) for news about the holiday season release of its next Call of Duty: Black Ops III; Electronic Arts (NASDAQ:EA) and its annual sports titles (with possible surprises from Star Wars: Battlefront), and a high-stakes game from Take-Two rumored to be called Advent.
- E3 begins June 16 at the Los Angeles Convention Center.
Wed, Jun. 3, 3:50 PM
- Activision Blizzard (ATVI +1.6%) is extending its popular $3B Skylanders game/toy franchise -- with 20 vehicles.
- Skylanders Superchargers adds land, sky and sea vehicles to let players race through various terrain and environments along with 20 new characters. The game is out Sept. 20.
- Activision's getting increasing competition in this toys-to-life genre it pioneered, not only with Disney's Infinity (NYSE:DIS) and Nintendo's Amiibo (OTCPK:NTDOY), but also Lego, planning a game where players' real-life brick creations can be played inside the videogame.
- While Disney and Nintendo have a stable of characters to draw on, Activision may need new "hooks" (like vehicles) with each release since its characters are original creations.
- Activision reported that (including toys) Skylanders was the No. 1 console franchise and title globally in Q1 and outsold the No. 1 action figure line globally.
- Toys-to-life needs something new, though; trailing-12-months sales in the category grew just 2% in Q1 vs. 45% a year earlier.
Wed, May 20, 9:36 PM
- Overruling an objection, a Delaware judge has signed off on a $275M shareholder settlement related to Activision Blizzard (NASDAQ:ATVI) -- the largest ever for a shareholder derivative suit.
- The case -- a challenge to Activision's $8B deal to acquire its stock that was held by Vivendi, which claimed it unfairly benefited Activision's CEO and co-chairman -- was settled last year when Activision agreed to the resolution.
- As a shareholder derivative lawsuit, the case was brought by investor Anthony Pacchia suing on Activision's behalf, so the settlement was paid to Activision's treasury by Vivendi, insurers and an investor group including CEO Bobby Kotick and co-Chairman Brian Kelly.
Fri, May 15, 4:07 PM
- Senate Bill 9 has been passed by both legislative chambers in Nevada, clearing the way for skills-based casino floor games.
- The development also opens a door for videogame sellers to create or license casino versions of their popular titles.
- The casino industry has its eyes on attracting millennials after seeing the group show tepid demand for classic table games and slot machines.
- New Jersey and Mississippi have also set the stage for casino floor innovation with similar legislation.
- Previously: Paging Steve Nash to the Borgata (Feb. 13)
- Related stocks: CZR, WYNN, SGMS, ISLE, PNK, PENN, MCRI, CNTY, IGT, MGM, BYD, OTCQB:TPCA, ATVI, TTWO, EA.
- Related ETFs: BJK
Thu, May 7, 3:14 PM
- After trading lower in after-hours action and today's premarket following yesterday's Q1 earnings report, Activision Blizzard (NASDAQ:ATVI) has risen 5.1% in today's trade as analysts look to game momentum and raise price targets.
- Q1 got a boost from the company's franchise successes in Call of Duty and Hearthstone, and now eyes turn to the June 2 release of Heroes of the Storm, Blizzard's response to Riot Games' League of Legends and an entry into a lucrative "multiplayer online battle arena" genre.
- The company provided some light Q2 guidance, but that could turn around depending on the new game, which is free to play but features in-game payments to unlock items, and which has 11M signups for a closed beta test.
- Baird, Cowen, Piper Jaffray, Barclays and Sterne Agee CRT all raised price targets to $27. Shares are trading today at $24.38.
- On the company's earnings call, it hinted at aggressive plans for content around its Destiny release, including "content being dropped throughout the summer" and "then in the fall we will have a major release, which will be the biggest addition to the universe yet, across all modes of play." The company claims 20M registered players for Destiny.
- Piper's Michael Olson points to recent and upcoming releases, including a new Guitar Hero and the Call of Duty: Black Ops 3 entry in November: "Management has historically under-promised and over-delivered."
Wed, May 6, 4:29 PM
- Activision Blizzard (NASDAQ:ATVI) is 1.1% lower in postmarket trading after Q1 earnings where it beat on top and bottom lines but guided below consensus for Q2 results.
- Net revenue (GAAP) breakout: Product sales, $784M (up 1.95%); Subscription, licensing and other, $494M (up 44%). On a non-GAAP basis, net revenue from digital channels rose to a first-quarter record of $538M (76% of total revenues).
- The company is guiding to Q2 net revenues of $650M, vs $688.4M consensus, and adjusted EPS of $0.07 vs. a consensus of $0.08. For full 2015, its outlook has net revenues of $4.425B (vs. consensus of $4.435B) and EPS of $1.20 vs. consensus of $1.18.
- Shares jumped into the close, +2.2% on heavy (very late) volume, before the postmarket decline.
- Conference call at 4:30 p.m. ET.
- Press Release
Wed, May 6, 4:10 PM
Tue, May 5, 5:35 PM
- ACAS, ALB, ALDW, AMTG, ANAC, AREX, ATML, ATO, ATVI, AUQ, AWK, BEAT, BGC, BNFT, BREW, BRKR, BWC, CCRN, CECO, CF, CHEF, CHGG, CJES, CKP, CLR, CLVS, CODI, CPA, CPE, CSLT, CSOD, CUZ, CXW, CZR, DMD, DPM, ECR, EFC, EGN, ENSG, EPAM, EPM, EQC, ESS, ETE, ETP, EXTR, EXXI, FLTX, FNGN, FNV, FOXA, FRSH, GBDC, GMCR, GUID, HIVE, HR, HUBS, IL, IO, IVR, JKHY, JONE, KIM, KND, KW, LCI, LGCY, LHCG, MASI, MCHX, MELI, MET, MITT, MRIN, MRO, MTDR, NEWP, NLY, NP, NSIT, NSTG, NUS, OAS, ORA, OSUR, PAYC, PDLI, PEGA, PFMT, PGTI, PHH, PMT, PNNT, PRAA, PRI, PRU, PSEC, PTLA, QLTY, QTM, REG, RIG, RIGP, RST, RYN, SBY, SD, SGM, SLH, SN, SQNM, SUN, SWM, SXL, SZYM, TCAP, THRX, TRIP, TROX, TSLA, TTPH, TUMI, TWO, VECO, VNDA, VRNS, VVC, WBMD, WFM, WGL, WTI, XNPT
Mon, Apr. 20, 9:13 PM
- Blizzard Entertainment (NASDAQ:ATVI) has set a June 2 release date for its Heroes of the Storm game -- a "multiplayer online battle arena" game that will combine characters from Blizzard classics and let players fight them against one another.
- The game follows in the footsteps of battle games like Marvel vs. Capcom or Nintendo's Super Smash Bros. in that it allows players to fight characters from divergent game universes -- but in its case, drawing from wildly popular game franchises including WarCraft, Starcraft and Diablo.
- MOBA games have seen massive market successes and Blizzard is joining in with what it calls a "team brawler" with an approachable sense of humor. The game will be free to play and focus on cooperative play but will feature a draft-style system for more experienced players.
- Blizzard's key franchises have collectively earned the company more than $4B over the past 20 years.
Fri, Apr. 17, 5:39 PM
- A new version of popular series Battlefield wasn't enough to boost video game sales in March, as software sales slipped 3% Y/Y to $395.4M. But software was positively solid compared to game hardware sales that slipped 21% Y/Y to $311.1M, according to NPD Group.
- In new retail games, Battlefield: Hardline (NASDAQ:EA), a cops-and-robbers version of the war-game series, led sales charts followed by another new entry, action role-player Bloodborne (NYSE:SNE) which was strong despite being a PS4 exclusive.
- The top five was rounded out by Grand Theft Auto V (NASDAQ:TTWO), Mario Party 10 (OTCPK:NTDOY), and Call of Duty: Advanced Warfare (NASDAQ:ATVI).
- Physical software sales showed sharp declines for previous-generation consoles, which points to the health of the new generation (PS4, Xbox One, Wii U), whose software sales increased 58% Y/Y.
- In hardware, Sony says PS4 again topped the charts, but everyone's doing well in the new generation: “This is the 17th month of sales for the Xbox One and PS4, whose combined cumulative hardware sales are over 50% higher than the combined 17-month cumulative sales totals for the Xbox 360 and PS3,” said NPD's Liam Callahan.
- In a market down more than 1% today, GameStop (NYSE:GME) did worse, down 3.1%.
- And in other EA news, at the ongoing "Star Wars Celebration" event going on in Anaheim, Calif., today's news included the reveal trailer for Star Wars: Battlefront wowing fans. Launching Nov. 17, the game showcases high-definition visuals but takes a somewhat risky move of dropping single-player missions entirely for cooperative and multiplayer.
Tue, Apr. 14, 12:57 PM
- 5 years after the last update to the music game franchise appeared, Activision's (ATVI -0.4%) FreeStyleGames studio is launching a new Guitar Hero title on major consoles and iOS/Android this fall, replete with a new controller (i.e. plastic guitar) and multiplayer modes.
- Initial reactions from testers of the game, known as Guitar Hero Live, have been positive. The shift to a first-person view (on a virtual concert stage) receives high marks, as does the fact the new controller (features 6 fret buttons instead of 5) doesn't require using a pinky finger.
- Also: It looks as if Activision won't be requiring users to buy new titles to get more content. Instead, they can play songs over music videos through a free online service called Guitar Hero TV.
- The Guitar Hero franchise has produced over 25M unit sales over its lifetime, yielding retail revenue of $2B.
Fri, Mar. 13, 5:15 PM
- NPD estimates U.S. physical retail game sales rose 7% Y/Y in February to $338.9M, up from January's 5% growth and better than expected. Hardware sales rose 10% to $378.2M, as next-gen console demand remains healthy. Superdata Research estimates digital game revenue rose just 2% to $995M, thanks to weak mobile and social game sales.
- Nintendo (OTCPK:NTDOY) had a good month: The recently-refreshed 3DS XL handheld was February's top-selling console - Ninetendo says 394K 3DS units were sold - and The Legend of Zelda: Majora's Mask 3D (launched on Feb. 13) topped NPD's game rankings.
- Take-Two (NASDAQ:TTWO) also did well: Evolve (launched on Feb. 10) was #2 on NPD's list, GTA V came in at #5 (down from January's #3) ahead of its March 24 PC launch, and NBA 2K15 was at #6 (down from #5). Take-Two recently said it was "very pleased" with Evolve's launch.
- Activision's (NASDAQ:ATVI) Call of Duty: Advanced Warfare fell two spots to #4, while Destiny (#9 last month) fell out of the top-10. Electronic Arts' (NASDAQ:EA) Madden NFL 15 and FIFA 15 also dropped out.
- Piper observes Take-Two and Activision's NPD sales were respectively up 72% and 16% Y/Y in February, and that EA's were down 32% over the first two months of 2015. It maintains Overweight ratings on all 3 firms.
- Take-Two rose 3.9% in regular trading thanks to the numbers. GameStop (NYSE:GME) also got a lift, rising 3.5%. Activision rose 0.9% and EA rose 0.4%.
Fri, Mar. 6, 6:39 PM
- Blackrock Mountain, the latest expansion for Blizzard's (NASDAQ:ATVI) popular Hearthstone: Heroes of Warcraft strategy card game, will "[thrust] Hearthstone players into the middle of a war between powerful forces battling for control of the mountain," and "introduce a slew of new hot-headed bosses to put players dueling skills to the test."
- A trailer video has been provided for the expansion, which becomes available in April on PCs and tablets. Each "wing" will cost either $6.99 or 700 in-game gold; the full expansion can be bought for $24.99. Activision stated in its Q4 CC (transcript) Hearthstone has "attracted more than 25 million registered players" over its lifetime.
- The announcement comes shortly after Blizzard disclosed it's planning a subscription-free payment option for World of Warcraft: Users will be able to buy tokens from WoW's auction house and redeem them for 30 days of game time, as well as sell purchased tokens for in-game gold.
- Token-for-gold swaps will be based on a rate determined by a formula created by Blizzard. The WoW subscriber base has been gradually declining in recent years, though it did rise by 2.6M (to over 10M) in Q4 thanks to the launch of the Warlords of Draenor expansion.
Wed, Feb. 11, 11:08 AM
- Worlds (OTCQB:WDDD) has added Activision's (NASDAQ:ATVI) recently-launched World of Warcraft: Warlords of Draenor and Call of Duty: Advanced Warfare to its existing infringement suit (handled by a Massachusetts federal court) against the game developer.
- A ruling on an Oct. 2014 Markman hearing for the suit, which revolves around patents relating to 3D virtual worlds within MMORPGs, is expected soon. Worlds soared shortly after the Markman hearing was held.
ATVI vs. ETF Alternatives
Activision Blizzard Inc is an online, personal computer, video game console, tablet, handheld, and mobile game publisher. It has three operating segments: - Activision Publishing, Inc., Blizzard Entertainment, Inc. and Activision Blizzard Distribution.
Other News & PR