Macro Tsimmis

intelligently hedged investment

Posts Tagged ‘TTWO’

Activision Blizzard (ATVI) update #9—2009 bad sales year for gaming companies

Posted by intelledgement on Tue, 15 Dec 09

With two weeks to go until the end of the year, 2009 is shaping up as a seriously down year for the gaming industry, sales-wise. Through November, sales in eight of the last nine months were worse than in 2008, and with Wal-Mart (WMT) aggressively cutting hardware and software prices going into this holiday season, it is doubtful December will be a whole lot better. Activision Blizzard (ATVI) partner NetEase (NTES) reported underwhelming 3Q09 results last month, and while World of Warcraft (WoW) is now up and running in China, there is no word yet on how many of the four million subscribers The9 (NCTY) had have survived the rocky migration (which included months of WoW being offline).It doesn’t look much better for the hardware makers, and retailer GameStop (GME) could be seriously arrested by a games price war.

Still-in-all, the game publishers in general—and our ATVI in particular—have held up pretty well in 2009, stock-price-wise, at least compared with 2008, which was a genuine disaster:

2006 2007 2008 2009 Overall since 2005
Activision Blizzard ATVI 25% 72% -39% 21% 61%
Electronic Arts ERTS -4% 16% -70% -4% -68%
Konami KNM 37% 8% -19% -36% -23%
Take Two Interactive TTWO 0% 4% -57% 13% -49%

Previous ATVI-related posts:

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