Nicholas Anderson
Value, dividend investing, energy, short-term horizon
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Activision Blizzard: Will World Of Warcraft Lose Market Share?
Mar. 6, 2014 5:28 PM ET | About: ATVI
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary
World of warcraft sales and subscriptions are declining due to a few reasons. mostly because the league of legends has stolen market share but is not an mmorpg.
World of warcraft's sales and subscriptions should continue to decline because bethesda softworks has been developing an elder scrolls mmorpg to compete with world of warcraft.
Losing mmorpg market share is likely only going to result in short term volatility. atvi's long term prospects appear attractive.
In the gaming industry, the value of the company is predicated upon the popularity of its products. Activision Blizzard (ATVI) is ranked as one of the industry leaders within the gaming industry because of the immense popularity its products have. In the wake of the release of "Call of Duty: Ghosts," investors are looking toward the release of "World of Warcraft: Warlords of Draenor" in August. Competition within the massively multiplayer online role-playing game (MMORPG) market continues to heat up. Resulting from stiff competition and the emergence of its first real competitor in the MMORPG market space, World of Warcraft is under threat of losing its ranking as the number one subscription based MMORPG.
Why World of Warcraft Sales and Subscriptions Have Been in Decline
The World of