Game on, Activision Blizzard, Inc. (ATVI)

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Electronic Arts Inc. (NASDAQ:EA), the developers of the extremely successful Battlefield series, which directly competes with Activision Blizzard, Inc. (NASDAQ:ATVI)’s Call of Duty series, is another major third party developer who owns, among others, the extremely successful FIFA franchise and various other sport simulations.

Fiscal year 2013 saw the company post decent performances with non-GAAP digital revenues up 36% year-over-year to $ 1.7 billion. The company saw its major franchise, Battlefield 3, generate over $120 million in revenue through the March quarter, and over $3.5 million subscriptions to date.

FIFA 13 was another success story for the company as it generated over $200 million in revenue, a 94% increase over FIFA 12.

Moreover, the company with its recent partnership with entertainment giant Walt Disney to develop and publish games on the extremely popular Star Wars series over a multi year time scale creates an amazing opportunity for the company owing to the strong fan following of the franchise.

All in all, Electronic Arts Inc. (NASDAQ:EA) looks poised for a steady and sustained growth in the coming times.

Foolish last words

DFC Intelligence, the renowned entertainment and video game industry research firm pegs the global gaming industry to reach $82 billion by 2017, offering significant opportunities for Activision Blizzard, Inc. (NASDAQ:ATVI) in the medium term.

With the arrival of next gen consoles, increasing production budgets and improving technology the gaming industry is in a dynamic phase, and only those companies who change their strategies, aligning themselves with the evolving demands of the customers, and produce innovative and creative products that redefine consumer tastes will survive.

Activision Blizzard, Inc. (NASDAQ:ATVI) finds itself fairly positioned in this transitional phase. With a strong balance sheet and an amazing and talented team of developers, the company looks set for a period of strong and sustained growth.

The article Game on, Activision originally appeared on Fool.com and is written by Rashmi Singh.

Rashmi Singh has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard (NASDAQ:ATVI). The Motley Fool owns shares of Activision Blizzard. Rashmi is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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