Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Activision has established a record of creating multi-billion-dollar franchises and consistently develops new revenue streams through innovative value-added methods.
Destiny--the first new franchise from Bungie since the smash hit Halo--should drive significant sales growth and gain a large user base early in the console cycle.
Skylanders and Call of Duty are still likely to generate the majority of console sales, and we expect Destiny to be one of the marquee titles for the new gaming platforms, driving sales. Read more 

Bears Say

World of Warcraft is getting a bit long in the tooth, and further declines could disproportionately affect Activision's profitability.
Activision is not yet meaningfully participating in mobile or social gaming, which could put it at a disadvantage to competitors like EA that are increasing user engagement through cross-platform strategies.
Competitors have emulated Activision's strategy of streamlining investments into a few titles to develop deeply immersive and engaging games that can compete with Activision's biggest franchises. Read more 

Management

Overall, we view Activision's stewardship of shareholder capital as standard. We believe Robert Kotick has been a hands-on CEO who has protected the firm's autonomy and acted in the best interests of shareholders. Previously the chairman and CEO of   Read more 

Profile

Activision Blizzard was formed in 2008 and has become the world's largest video game publisher. Activision's impressive franchise portfolio is led by World of Warcraft,   Read more 

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