Jefferies sees Activision Blizzard’s Call of Duty becoming a major esports business
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Jefferies sees Activision Blizzard’s Call of Duty becoming a major esports business

Industry-leading game developer and publisher Activision Blizzard has been one of the major wave-makers in the nascent esports business with its Overwatch League. This business has swiftly grown to become enormous: according to Timothy O’Shea, a Jefferies analyst, the company’s sale of 20 team franchises will generate a “cumulative $400 million to $500 million in sales over the next six to seven years.” He also said that the league could deliver $300 million in revenue for Activision Blizzard next year from broadcast rights, sponsorship, ticket sales, and merchandise. Call of Duty, another title that Activision plans to push into the eSports arena, could be a similar success.

Activision Blizzard’s share price has risen by 26% so far this year

graph 1909 activision

SOURCE: Yahoo Finance

O’Shea believes that Call of Duty, one of the company’s flagship franchises, could become an esports phenomenon in the same vein as Overwatch. The upcoming release, Call of Duty: Black Ops 4, is slated to be released on October 12. And one fact about it has O’Shea – and plenty of gamers – seriously excited: the ‘Blackout’ battle royale mode.

Battle royale refers to a free-for-all shoot-em-up game, where multiple competitors battle it out across an open space (such as an arena, or virtually rendered landscape) until only one player is left standing. It’s not a new concept in video games – but it’s achieved widespread engagement over the last 12 months thanks, in part, to Epic Games surprise hit of the summer, Fortnite.

Referring to the addition of this mode of play to Activision’s flagship franchise, and its potential to transition into esports, O’Shea said: “Early results look encouraging. Blackout mode looks like it could drive user engagement and Twitch viewership. If so, this would be a key foundation upon which ATVI could build a true eSports business akin to what it has already done with Overwatch League. The Call of Duty franchise could follow a similar blueprint."


Dominion holds Activision Blizzard in its Global Trends Ecommerce Fund.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.