Activision’s (NASDAQ:ATVI) prospects look promising. The company launched CoD: Mobile on Oct. 1 and already has 35 million downloads. The launch fundamentally shifts the company’s focus on the casual mobile gaming market.
Activision launched a free version of its FPS game, Call of Duty: Mobile. Available worldwide on both Android and Apple and built by Tencent (OTC:TCEHY), the company needs a major hit title on the mobile platform. The company previously relied on record sales of the CoD franchise on the console and PC platform for billions of dollars in revenue. Yet rising prices and in-game sales are becoming very unappealing for the fan base. Activision can’t count revenue growth from gamers paying the high prices year after year.
CoD Mobile might bring in a modest $15 - $30 million in Q4. If the online playability catches on as it did with Battle Royale or Fortnite, ATVI stock will break out and head back into the $70 - $80 range.
Glu Mobile (NASDAQ:GLUU) and Zynga (NASDAQ:ZNGA) developed many game titles for the mobile platform over the years, with mixed success. Glu’s business lost momentum in the last quarter. Conversely, Zynga reported Q2 revenue growth of 41% Y/Y. Live services rose while bookings increased 61% to $376 million.
Expect Activision reporting strong success with CoD on the mobile platform.
