Video gaming developer Activision Blizzard (NASDAQ:ATVI) has ignited the gaming circles with the launch of first official trailer for Call of Duty: Black Ops 2, which is slated for release on November 13.  With the release of the trailer, the company has put confusion to rest on its next Call of Duty sequel, as it confirmed that Call of Duty 9 is indeed Call of Duty: Black Ops 2.
Developed by Activision’s Treyarch studio, Call of Duty: Black Ops 2 is set in 2025 with the plot’s focus on a cold war between the U.S. and China. Though the futuristic setting of the game has drawn mixed reaction from the gamers with fervent discussions on leading video-gaming forums, we believe the trailer is generating good publicity for the eagerly anticipated game, as intended by the company. Activision Blizzard competes with game developers such as Electronic Arts (NASDAQ:EA), Take-Two Interactive Software (NASDAQ:TTWO) and casual gaming mainstays such as Zynga (NASDAQ:ZNGA).
- Activision Blizzard: Why Console Segment Isn’t As Strong As The Next-Gen Wave Shows
- Activision Blizzard: Why Is “Mobile & Other Platforms” The Most Important Segment?
- Activision Versus Electronics Arts: Who’s More Leveraged?
- Activision Blizzard Gears Up For A Promising Future
- Is Activision Blizzard Reaping The Benefits Of Its R&D Investments?
- Are Activision’s Investments In Growth Expected To Increase Going Forward?
Great Publicity for Call of Duty: Black Ops 2
The revelation that Call of Duty: Black Ops 2 is set in the near-term future has aroused intense discussions in the video gaming community. Having a futuristic setting is a relatively new area for Activision Blizzard, as most of its previously successful Call of Duty versions have never ventured past the modern day.
Some gamers worry that a futuristic setting may derail the franchise’s past success as Black Ops 2 that digresses from the original theme of its successful predecessor Black Ops 1, which was set in the 1960-70s period.
The game’s futuristic setting may also put Black Ops 2 in direct competition with Halo 4, which is due for release nearly a week before Call of Duty: Black Ops 2. The Halo franchise is often regarded as market leader in the first person shooting games with futuristic plots.
Meanwhile, the Black Ops 2 trailer is gaining praises from a varied section of gamers. Supporters are welcoming the bold move from Activision stating that a futuristic setting might infuse a positive change in the story line of Call of Duty, which is increasingly becoming monotonic and predictable.
For or against, there is no denying that Activision’s Black Ops 2 is garnering serious publicity through these intense discussions. Nevertheless, how much of this publicity will convert into actual sales will be clear after analyzing the Black Ops 2 pre-order numbers, which should take at least a month or two.
We maintain a $19.92 price estimate for Activision Blizzard, which is roughly 50% above its current market price.
Note: Call of Duty franchise contributes a lion’s share to the company’s console gaming division, which represents nearly 45% of the Trefis price estimate for Activision Blizzard’s stock.Notes:
- Activision unveils Call of Duty: Black Ops 2 Trailer, Source: Call of Duty UK [↩]