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Activision Releases World of Warcraft: Battle for Azeroth

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Activision Releases World of Warcraft: Battle for Azeroth

Activision's (ATVI) Blizzard Entertainment unveils the latest expansion pack of World of Warcraft.

Activision’s ATVI Blizzard Entertainment recently unveiled the much awaited World of Warcraft: Battle for Azeroth globally, the seventh expansion pack of World of Warcraft.  

The massively multiplayer online role-playing game (MMORPGs) revolves around the battle between the two key factions, the Horde and the Alliance, as they clash to fight for Azeroth.

Activision made the game available in physical and digital editions as well as a deluxe digital edition. Suggested retail price (SRP) for physical and digital editions is $49.99. The deluxe digital edition is priced higher at $69.99 as it includes in-game content for many other games that the company offers.

Additionally, Collector’s Edition, exclusively available in retail, for SRP of $99.99 includes a digital soundtrack of the game, two novellas Elegy and A Good War, and Horde and Alliance Double-Sided Mark of Allegiance apart from in-game content.

World of Warcraft, one of the eight $1 billion franchises, is expected to boost Activision’s top-line growth in the current quarter.

Activision Blizzard, Inc Revenue (TTM)

Activision Blizzard, Inc Revenue (TTM) | Activision Blizzard, Inc Quote

Expansion Packs, E-Sports to Boost Revenues

Activision has been continuously drawing strength from new and engaging content releases. The addition of content makes it more attractive to players, increases its engagement levels and thereby leads to higher in-game purchases.

Notably, the company earned $1 billion in in-game net bookings in the last reported quarter across its portfolio of franchises, which translated to higher top-line growth. Moreover, in-game net bookings were a record $2 billion in the first half of 2018.

Activision is set to release Destiny 2’s next expansion, Forsaken, on Sep 4.

Moreover, the company announced the inclusion of a battle royale (BR) game mode in the upcoming game Call of Duty: Black Ops 4.

Call of Duty, one of the biggest growth drivers for the company, was the top-selling console video game in 2017 globally for the Call of Duty: WWII edition.

Moreover, the company is venturing into areas like e-sports to cash in on the on-going digital shift.

Activision’s partnerships with the likes of Disney DIS and Amazon AMZN to benefit from the growing popularity of the e-sports market is a positive.

However, Electronic Arts EA and Take-Two Interactive have also bolstered their partnerships in the e-sports space, making it increasingly competitive.

Moreover, the growing popularity of Epic Games’ Fortnite is a concern.

Activision currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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