The factors in favour of a rise in the Activision Blizzard share price:
First of all, the Activision Blizzard group enjoys a very interesting positioning on the world market for its sector of activity. It is currently one of the international leaders in the computer games market with 5.8% of the market share and these market shares follow an increase of around 1.4% each year, an increase which should continue at least until 2020 according to forecasts.
The group can also count on loyal customers. As proof, Activision Blizzard organizes an annual convention each year which is entirely dedicated to its games and derivative products which attract players from all over the world and whose entrance tickets are sold in just a few minutes. This influx of visitors proves the general public's interest in the company and the strength of current and future demand. It is therefore a guarantee of loyalty over time and future sales, some games being highly anticipated by fans.
The Activision Blizzard group has built a solid reputation particularly thanks to the care it has always taken to the quality of its customer relations. It always looks to reduce the waiting time for an answer to a question asked online. To do so, it has implemented several tracking and rating systems for the service quality of their agents and advisers allowing it to improve their performance in terms of responsiveness. However, players are known to dislike waiting when they fail to install or operate a new game or when they are stuck in their game. The interest in customer satisfaction is therefore a real plus for the company's image.
Finally, the Activision Blizzard group can also count on intellectual property which is bearing fruit thanks to various franchises. The group has already developed and edited games that have become real essentials for enthusiasts such as World of Warcraft or Diablo. This group has a true capacity to create addictive games and is likely to meet a huge success with players around the world.
The factors in favour of a drop in the Activision Blizzard share price:
First if the competition in terms of paid games remains relatively low with a leadership position still retained for Activision Blizzard in certain segments, another form of competition increasingly threatens the group's results. These are of course free games or micro-paid games developed by independent developers which are attracting more and more players around the world. Because of this rise of free games or their reduced price, the Activision Blizzard group could see its number of subscribers drop dangerously in the years to come. The company could find it very difficult to position itself on this type of game or reduce its prices given the significant cost necessary for the development of certain licenses.
Some analysts in the video game sector also explain that the Activision Blizzard group could soon suffer the consequences of a lack of renewal of its flagship products on which it has relied for many years. Some licenses that are still profitable today have in fact been in use for more than 20 years and will gradually start to run out of steam. However, Activision Blizzard hasn't yet reported on real novelties likely to shake up the market like some of these old games. In the absence of renewal and new blockbuster of the genre, it could lose some of its players even the most loyal who could be seduced by competing games offering true novelty. The same goes for the speed at which the group's new games or new strands of its large licenses are brought to market. Several years often elapse between the end of one part and the release of the next, which can cause fans to lose patience who once again end up turning to competing games. Remember that the record for waiting between two games in the same saga is 8 years and relates the transition from Diablo II to Diablo III.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.