It really is amazing how Activision (ATVI) managed to steal the video-game industry spotlight away from Electronic Arts (ERTS). Activision is the only video-game software publisher to have reported decent Q4 numbers and forward guidance, while EA disappointed for what seems like the 19th time in a row.
Under his watch, we’ve seen Activision do the following:
1) Acquire Guitar-Hero publisher Red Octane for a bargain-basement price.
2) Turn Call of Duty into a meg-mega-mega franchise.
3) Execute the merger with Vivendi games which brought in Starcraft, World of Warcraft, and Diablo.
What’s more is that Activision avoided many of Electronic Arts’ strategic errors – like churning out countless me-too games, arriving late to important genres like music/rhythm, and overemphasizing emerging platforms like the Apple (AAPL) iPhone and now the iPad tablet.
The proof is in the pudding, and Kotick’s team have formed the most powerful product portfolio in the history of the video-game industry. While the music genre is way past the glory days of 2006 and 2007, most of Activision’s key owned franchises like Call of Duty and World of Warcraft can stay relevant for years if not decades to come.
Call me crazy, but Activision in its present form reminds me of Procter & Gamble (PG) in the 1980’s.
Disclosure: Long Activision Stock
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