Fortnite's Success May Inspire Similar Activision Games in the Future

Man gaming on couch

This is Activision Blizzard's "north star", Johnson said. "This game is attracting new players of all ages and gender and it is helping gaming become even more mainstream entertainment". During an earnings call with analysts the chief executive officer of Activision Blizzard, Bobby Kotick, acknowledged that Fortnite posed a competitive threat.

Call of Duty: WWII has, of course, been a big success for Activision - only one other CoD game (Black Ops III) has generated more cash in the first quarter. The gaming publisher also slightly raised the full-year outlook with revenue expected to reach $7.36 billion while profit will rise to $1.79 per share.

Excluding items, the company earned 38 cents per share, beating the average analyst estimate of 35 cent per share. Shares of the two companies have been hit hard in recent weeks, but Jefferies sees their dips as a buying opportunity, saying the worst-case scenario is already priced into their stock prices.

Total adjusted revenue rose to $1.38 billion from $1.20 billion. Among other video game stocks, EA climbed 2.9% to 123.64 and Take-Two increased 3.5% to 108.76.

Prior to the release of the earnings there had been an error when Dow Jones Newswires inadvertently published wrong figures for Activision Blizzard for the quarter. Electronic Arts is scheduled to report its fiscal fourth-quarter results on Tuesday. These numbers are particularly impressive given Acti Blizz didn't release a single major game in the first quarter of 2018. The decrease in value is due to fears that Fortnite will affect quarterly results.

How is Epic Games Able to Offer Fortnite for Free?

Of course, no single title is more relevant in the shooter genre than Epic Games' cultural phenomenon Fortnite Battle Royale - a fact that Activision Blizzard immediately commented on during its Q1 financial review conference call yesterday.

The future certainly looks bright for Activision Blizzard, as the company plans to bring more of their popular core brands to mobile, delve deeper into esports, and, of course, keep the Call of Duty money-printing machine running.

"We note Activision's historical success as a "fast follower" (e.g., music games, mobile) providing a degree of confidence that the company will find success in the new mode, where affinity for established franchises can be leveraged to drive higher engagement levels with new gameplay", Sebastian said in a report.

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