It’s The Start That Matters For Activision

With the summer season almost over, the U.S. gaming industry is looking forward to the release of top-tier games by some leading game developers. Activision Blizzard (NASDAQ: ATVI) has already started its campaign for this year with the launch of the next major expansion pack to the Destiny universe, The Taken King. On September 15, 2015, the company released the 18 GB expansion pack, aimed at expanding the game’s sundry offerings. ^[1] The expansion pack also includes a new raid, King’s Fall, which went live three days after the expansion launch. The Taken King, the third expansion pack in the series, not only has great potential to boost the gamer base for the title, but can also provide a huge boost to the company’s financials. Here’s why.

The Timing Is Right

Destiny has been one of the most successful IP launches in the company’s history, and its previous two DLC (downloadable content) packs got huge positive response from the core gamers. However, on both occasions, the company’s stock price didn’t show much movement. The important thing to notice is that the release of the first DLC pack, The Dark Below, happened during the peak of the holiday season, when gamers were busy buying other newly released popular games. On the other hand, it seemed like a somewhat desultory add-on to some core gamers, as there were many lingering issues with the game’s content after the expansion. ^{[2] [3]} The tough timing and issues with the game’s content contributed to the weak growth of the game’s unit sales.

The game’s second DLC pack, House Of Wolves, saw the company bring new features to the storyline, but the solution to the endgame issues remained somewhat neglected. On a whole, the company managed to get positive reviews from expert-level players, but it still wasn’t a perfect strike. ^[4]

The company showcased the third expansion pack, The Taken King, during the 2015 Electronic Entertainment Expo (E3). Activision has, intentionally or unintentionally, released the expansion pack at a time when there are no other hyped major shooter games in the market. Moreover, this is around the time when many gamers look for new storylines to try out on their systems. Additionally, the next major shooter game to hit the market is Activision’s Call of Duty in November. This gives users ample time to play and get used to the game’s new features and storyline.

Improved Content

After the mixed reception of the first two efforts, the onus was on the company to give its users whatever they want. As a result, most of the effort was apparently put in changing the game-play and story of the game. Destiny has proven itself to be a good shooter game for the next-generation consoles, though the game has to face some of the blockbuster titles this season, including Fallout 4 and Call of Duty.

The company claims that this expansion will make the game more player-friendly, with additional innovative features. Further, the end-game features have been taken care of, according to the company. The Taken King, with its King’s Raid, has been generating hype among core gamers after the E3. Fixing the issues will be a great start for the franchise.

Manageable Price Point

The new expansion comes at a retail price of $40. For gamers who have yet to buy the game, the original Destiny game plus both the expansions and all the content in The Taken King will be available for $60. It is a great discount price for new starters and will surely attract more gamers, further boosting the company’s revenues from the franchise.

Activision Blizzard should be off to a solid start if the game’s new expansion pack gets a positive user response. The company’s 2015 holiday season will largely depend on how Destiny’s new expansion pack is received by gamers.

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More Trefis Research

1. Embark on the next chapter from Bungie and Activision with Destiny: The taken King [↩]
2. Destiny’s ‘Loot Cave’ showcases Bungie’s lingering endgame problems [↩]
3. Destiny: The Dark Below Review [↩]
4. Destiny: House of Wolves Review [↩]