Activision Unveils Two New Games (ATVI) (ERTS) (MSFT) (SNE)

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As competition heats up in the pre-holiday season sales, video game publisher, Activision Blizzard Inc. (ATVI) recently came out with two new adventure games back-to-back, namely Survival: Shadows of Katmai in partnership with Cabela’s and James Bond classic thriller GoldenEye 007: Reloaded.

Cabela's Survival: Shadows of Katmai is currently available for Microsoft Corps (MSFT) Xbox 360, Sony Corp’s (SNE) PlayStation 3 and Wii system from Nintendo. The game is based on the adventures of pilot Logan James after he survives a horrific plane crash in the Arctic wild. The new game features the Top Shot Elite wireless controller and is priced at $79.99 on Xbox 360 and $59.99 on Wii.

On the other hand, GoldenEye 007: Reloaded is based on the classic James Bond thriller movie originally produced by Metro-Goldwyn-Mayer Studios (MGM). The old story has been updated and the introduction of the voices of actors Daniel Craig as James Bond and Judi Dench as 'M'; are the latest attractions.

GoldenEye 007: Reloaded has been developed by Eurocom under the license from EON Productions Ltd and Metro-Goldwyn-Mayer Studios Inc. for the PlayStation 3 and Xbox 360. In the second half of 2010, Activision launched GoldenEye 007 exclusively for the Wii platform. The game has received rave reviews, which helped make it an instant hit among gamers.

GoldenEye 007: Reloaded is the updated version of the 2010 release and features high definition visual experience and realistic environments that challenges gamers for a full-on assault, elimination, stealth and defense experience. The game enhances the multi-player experience with its 16-player online matches and boasts updated maps, weapons, characters and game modes that will have the gamers’ adrenaline pumping.

Although both the games feature strong visuals, we believe that Activision will face stiff competition from Electronic Arts Inc’s. (ERTS) Battlefield 3. Battlefield 3 released worldwide on October 25, 2011 and has sold more than 5 million units in the first week of release.

However, we believe the upcoming release of Call of Duty: Black Ops, the new installment of the top-selling franchise and direct competitor to Battlefield 3 will boost Activision’s market share going forward.

Activision is also expected to release its latest racing spectacle NASCAR Unleashed in the 2011 holiday season. We believe that a healthy product pipeline for the holiday season will help the company to tap the strong demand in the holiday season, thereby driving its top-line growth.

We remain Neutral over the long term (6-12 months). Currently, Activision has a Zacks #3 Rank, which implies a Hold rating in the short term.

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