Activision Blizzard, Inc. (ATVI), Electronic Arts Inc. (EA), Konami Corp (ADR) (KNM): What Could These Three Gaming Companies Do for You?

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The global value of the game software industry is estimated to reach $62.4 billion in 2016, a surge of 62.6% from 2011. Global video gaming totals almost 3 billion hours each week. Gaming software companies are continuously launching new games to attract gamers. They are also diversifying their games onto new platforms including smartphones, tablets, and more. Here is an analysis of the investment opportunities present in three companies’ new game launches.

Growing with Call of Duty and Destiny

Activision Blizzard, Inc. (NASDAQ:ATVI)

Activision Blizzard, Inc. (NASDAQ:ATVI) is planning to publish a new shooter game called Destiny in the first half of 2014. This game will be played online as a first person prospective. It is a highly social game, as players can make new friends over the web outside their current friend list. The option of online gameplay will help avoid pushing traffic toward competitors. It can be played on various other platforms such as PlayStation and Xbox, and it’s highly social nature is expected to create demand of more than 15 million units annually. Destiny is predicted to generate revenue of $400 million by the end of 2014.

Call of Duty, the company’s highest-selling game last year, has sold 20 million copies around the world. With the success of this game franchise, the company will launch the next-generation Call of Duty: Ghosts on Nov. 5, 2013. The game will feature a new game engine with an all new world and characters. This engine will deliver better graphics and innovation throughout the entire game to avoid the monotony of previous games. It will also include new multiplayer features, which will likely increase demand in the future. The new game is expected to generate revenue of $1.04 billion by the end of this year.

Brazil FIFA World Cup to kick up the revenue

Electronic Arts Inc. (NASDAQ:EA)’ mobile segment reported revenue of $370 million in fiscal year 2013, up by 30% year-over-year. According to Trefis, smartphone and tablet users are expected to grow at a compound annual growth rate of 20% from 2012 to 2016. With an increasing user base of smartphones, the company plans to monetize the opportunity by launching 11 new games for the smartphone platform in fiscal year 2014. These games will be available on both the iOS and Android platforms. With the launches, Electronic Arts Inc. (NASDAQ:EA)’s mobile segment revenue will further increase to $470 million in the fiscal year 2014.

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