Activision Blizzard: Why Console Segment Isn’t As Strong As The Next-Gen Wave Shows
Activision has seen significant growth in its next-gen console revenues for the past few years and this trend is likely to persist, at least in the near future. Meanwhile, previous-gen console revenues have been declining due to the availability of better hardware in the gaming domain. While on the outside, it might appear that next-gen is providing a strong wave of growth for the company with an expected revenue compound annual growth rate (CAGR) of 86% for the 2013-2018 period, it is merely replacing revenues coming from previous-gen consoles. For the 2013-2018 period, overall console revenues are expected to increase at a CAGR of just 1.5%, which isn’t too impressive. Therefore, rather than a growth factor, the solid rise in next-gen console revenue growth is just the result of the cyclical nature of the gaming industry.
Have more questions on Activision Blizzard (NASDAQ: ATVI)? See the links below.
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