Activision Blizzard share price rises on back of new Call of Duty launch
World leading game developer and publisher Activision Blizzard saw its share price rise at the end of last week, as the latest iteration of its massively popular franchise Call of Duty was released. This new version of the game is predicted to shift 10 million copies, and at least some analysts are excited about its inclusion of a new ‘blackout’ mode.
Activision Blizzard’s share price jumped at the end of last week, following the release
SOURCE: Yahoo Finance
Jeffries analyst Timothy O’Shea, who has long touted the next Call of Duty as a game changer for Activision Blizzard, said: “investors are underestimating the impact Blackout mode will have on this game.” Blackout mode is a ‘battle royale’ style free-for-all, which pits player against player in a winner-takes-all tournament. He may have a point: the recent runaway success Fortnite is built around this style of play, and has exposed a strong demand for it. O’Shea said that – depending on the reception – Activision could add a further 5 million units to its sales of the new game. “There is no reason why they can’t build a billion-dollar mobile business,” he added.
Keybanc analyst Evan Wingren agrees. In a research note earlier last week, he wrote: “We expect Blackout to see the most engagement of all Call of Duty modes this cycle. Longer term, we expect Blackout to become its own live service, potentially carved out with its own unique development team supporting it.”
Dominion holds Activision Blizzard in its Global Trends Ecommerce Fund.
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