Deutsche Bank analyst Jeetil Patel believes that although the
merger of Activision and Vivendi Games has received proper attention from investors, he feels they still haven't fully appreciated the power Activision wields all by its lonesome. He states that in a direct comparison with
EA,
Activision continues to
hold a lead over its rival (thanks to
Guitar Hero and
Call of Duty) despite no major recent releases.
Patel points out that Activsion has been steadily growing over time, while EA "seems to have lost its superiority to the likes of Activision" in terms of profit margins and profit scale. He gives a "Buy" rating to Activision and a "Sell" to EA. It's worth noting that Patel is certainly
one of EA's harshest critics.
Reader Comments (Page 1 of 1)
severian00 @ Jun 25th 2008 8:33PM
Well that seems like an obvious decision considering that EA is in the midst of trying to re-energize their brands while Activision is not even close to driving their franchises into the ground yet.
Tegolin @ Jun 25th 2008 9:12PM
:Cough:Guitar Hero:Cough:
severian00 @ Jun 25th 2008 10:04PM
Yeah except sales of Guitar Hero are still increasing with every iteration, where nearly all of EA's franchises are on the decline. Look at Madden's sales, year over year down quite a bit.
juju187 @ Jun 25th 2008 9:02PM
quality over quantanty hmmm...
Deprincer @ Jun 25th 2008 11:17PM
I don't mind. I hope EA goes down the drain. They come off as completely greedy and half ass every new iteration of their franchies... while Activision has always shot for some type of innovation. Although I can't say much for Guitar Hero, they didn't make the game, they're just publishing it.
This is overall a business matter and not one of creativity. Plus I really dislike EA.
Long Bow @ Jun 25th 2008 11:17PM
Let's not forget that Activision also has the 800 LBS. crack dealing gorilla called World of Warcraft.
Deprincer @ Jun 25th 2008 11:32PM
rofl that's right. good call!
Paktu @ Jun 25th 2008 11:46PM
Fundamentals > all. ATVI is the top dog and has been since Q4 07. Everyone is just realizing it now. Fuck T2 and EA and especially Ubisoft. Activision will continue own the gaming community and make everyone else ride bitch for the next 5+ years.