We’ve been big fans of Activision Blizzard for a while. No, they don’t push out a ton of games each year, but the games they release are generally from fantastic franchises and really top quality. Unfortunately, those franchises are declining, and Activision’s stock prices are going with it.
First Adopter is reporting a 17% share price drop in the past month for Activision. The report sites a dismal launch for Destiny, as well as issues with some of Activision’s other franchises as the reason for the stock tumble. While the stock is definitely on the decline, is this a new trend or something that will turn around again?
As cited in the article, Destiny wasn’t as massive a launch as expected, and even Call of Duty is declining. Add to that the diminishing population of World of Warcraft and increasing competition for Skylanders in the form of Disney Infinity and it might seem like the company is in trouble. However, I wouldn’t start jumping ship just yet.
Destiny certainly had a less than stellar launch, but so did Diablo III and look at it now. Acti-Bliz knows how to turn things around; it might be too late for some fans, but plenty will return if they hear that things are improved. Call of Duty certainly isn’t the juggernaut that it once was, but it is still a powerhouse that will be bought by die hard fans each year. Add to that a whole bunch of new features and award winning acting talent and the new iteration in the franchise might signal an improvement in the series.
Skylanders will face some tough competition against Disney Infinity, although the iPad version of the game is fantastic and will definitely convince some parents that it’s the better game for their offspring. Meanwhile, World of Warcraft’s latest expansion might bring fans of the MMO back to the fold. Plus, Heroes of the Storm is set to release relatively soon and could make a bunch of the MOBA fans change their game of choice.
Investors may be worried about the state of the company at the moment, especially after Destiny showed so much promise and then failed to deliver. However, there are more tricks up Activision’s sleeve and I wouldn’t write them off just yet. I’m not sure that the stock price is a true indication of how the company is doing.
Do you think Activision is in a downward spiral, or will we all be laughing at the mere idea once their next major game launches?
Last Updated: October 9, 2014