Activision Blizzard Inc., the first big video-game company to report earnings since Fortnite fever took hold, is sure to reveal how disruptive the multiplayer survival game is - or isn't. Since it hit a peak of $77.82 earlier in the year shares of Activision Blizzard have fallen by around 15% over concerns that its popular franchises would be abandoned in favor of Fortnite. Activision Publishing president Coddy Johnson added that the battle royale mode is "contributing to innovation within the industry", going on to say it is helping bring new, younger games to video games. During an earnings call with analysts the chief executive officer of Activision Blizzard, Bobby Kotick, acknowledged that Fortnite posed a competitive threat.
Fortnite is one of the biggest, most popular games on Earth right now-it's so big that it's even impacting the established juggernaut Activision. In fact, it amounted to more than $1 billion, as confirmed by an investor call which can be read on Seeking Alpha.
With these results Activision Blizzard also managed to beat the forecasts the firm had for the quarter with revenue being greater by a figure of $145 million while profit exceeded forecasts by $0.18 per share.
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Excluding items, the company earned 38 cents per share, beating the average analyst estimate of 35 cent per share. Still, the company continues to post record results from its deep bench of game franchises, which include "Call of Duty", "Overwatch", "World of Warcraft" and "Candy Crush". The company predicts it will make $1.56 billion its next quarter, and $7.36 billion by the end of 2018. Among other video game stocks, EA climbed 2.9% to 123.64 and Take-Two increased 3.5% to 108.76. While some anxious "Fortnite" would eat into its earnings, Activision Blizzard said its business is performing at record levels.
The company more than likely made enough money off the game's initial release to cover the costs of the game. Plus, it faced competition from upstart "battle royale" games including "Fortnite" and "PlayerUnknown's Battlegrounds".
Both Activision and Take-Two have highly anticipated releases planned for later this year, Hickey noted, and rumor has it that their games will eventually incorporate - you guessed it - a battle royale mode similar to that of Fortnite. He expects the next "Call of Duty" release, due out October 12, to have a battle royale mode.