Gamers are headed for a fantasy delight withActivision Blizzard Inc’s (ATVI) for PROTOTYPE 2, for which the pre-order promotion has started in partnership with GameStop Corp. (GME).
PROTOTYPE 2 is the sequel to Radical Entertainment's best-selling game PROTOTYPE.
“Get in the Game”, as the pre order promotion is named, will enable gamers who are 18 years and older to become a character in the game PROTOTYPE 2. The winner will be flown to Radical Entertainment in Vancouver, Canada, for the digital characterization process. The game allows players to create a unique range of mutant abilities with enhanced disguising powers.
The game would be available in Microsoft Corp.’s (MSFT) Xbox 360, Sony Corp.’s (SNE) PlayStation 3 and Windows PC.
Recommendation
Activision Blizzard has recently posted better-than-expected results on the back of top-line growth and online expansion.
We expect the company’s initiatives to expand in the high-margin digital business segment to pay rich dividends in the forthcoming quarters. Additionally, the title releases scheduled for the forthcoming quarter will prove beneficial for Activision.
However, Activision continues to face tough competition from Electronic Arts Inc. (ERTS) and Take-Two Interactive Software Inc. (TTWO), which will likely act as a headwind going forward.
Moreover, Activision does not have any exposure in the social gaming platform as compared to Electronic Arts, which may hurt its competitive position over the long term.
In the long run, we maintain our Neutral rating.
However, we currently have a Zacks #2 Rank for Activision Blizzard Inc., which implies a Buy rating in the short term (1-3 months).
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