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Analyst: Activision is a better investment than EA

We'll start this one off with the caveat that these days, you can find an analyst to tell you anything you want, so just in case you want to hear that Activision is apparently a "better investment" than Electronic Arts, Deutsche Bank analyst Jeetil Patel is your man. He says that Activision (the company that's merging with Vivendi/Blizzard, doncha know) is "way ahead" of its big competitor EA in terms of profitability.

His comments are more of an attack against EA than a compliment for Activision, however -- he mentions Call of Duty and Guitar Hero as big franchises for Activision, and they are, but he doesn't say a word about the Blizzard merger at all. And on the EA side, he leaves Rock Band off the list completely (EA is distributing it, not publishing it), and makes no mention at all of Madden or any of EA's other big franchises). Plus, he's been down on EA for a long time.

In short, this isn't going to change anyone's mind. If you're a fan (or stockholder) of Activizzard, then great, there's a bright future in it for you. And if you're not, and you'd rather embrace EA, this guy is just biased enough that he's not going to change your mind. But we're all for competition anyway -- it can be good games time now?

[via Joystiq]

Activision stock reaches a new 52-week high

Steven Mallas over at BloggingStocks notes that Activision's stock (AVTI) capped a new 52-week high yesterday at $36.84. By the end of the day, the final price was slightly lower, but overall it grew nearly 5%. Mallas mentions what's on all of our minds -- Guitar Hero for DS, sure, but Activision is about to pick up a 10-million subscriber powerhouse called Blizzard. That's worth a little something to investors.

So while other, similar companies lost share price yesterday (Electronic Arts and Take Two, for example), our Activision overlords (whom I, for one, welcome with open arms) continues to do well. With Wrath of the Lich King pending around the corner, we can hope for the stock to pick up a few additional pennies. I don't know what effect the whole eSport buzz might have, but it could still be too early to tell.

The future of Activision Blizzard

So now that the news has broken, the CEO has been interviewed, and the dust has settled on this weekend's merger, it's time to ask the big question: Why? Blizzard and Vivendi are on top of the world in terms of their field right now. Why would they combine with Activision, especially if, as they claim, nothing at all is changing? Why go to all the trouble if it'll make no difference in either company's business?

And the answer-- in my analysis-- is, as usual with most mergers: money. The fact is that Activision wants to be the biggest gaming company in the world. They want it all-- consoles, PC games, you name it-- and connecting with Blizzard helps them get a big part of that. World of Warcraft has turned Blizzard from a quality game designer into a videogame powerhouse, and Activision, in reaching for the top, has invited Blizzard on their team.

Blizzard will profit from it as well-- Activision knows how to get games published and marketed (just look at Guitar Hero III, which has done incredibly well for being a game that was not only not made by the original developer, but actually released up against a strong competitor made by the original developer). Blizzard knows how to make great games, and Activision knows how to release them, so both companies obviously think this is the beginning of a beautiful friendship.

But is it?

Continue reading The future of Activision Blizzard

Prince & WoW Boost Vivendi's Stock

As Reuters reports today, Vivendi Universal, the big, scary parent behind Blizzard, has reported a 5.7% rise in 1st-quarter sales this year, spurred on mainly by the enormous cash cow that is WoW & it's six million subscribers, and from recording artists such as...Prince?

Ok, I grew up with Prince, and I'm a fan, but I have to admit, I had no idea he had made a single note of music in years; last thing I heard, some basketball player was suing him for renting his house to Prince, only to return & find it painted purple inside & out. At least I can just type his name & not have to find a character for that stupid symbol...


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