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PostPosted: Thu Nov 30, 2017 8:42 am Post subject: Snap up neverwinter diamond PC/Xbox/PS4 with 8% off Reply with quote

Activision Blizzard gold wow buy (NASDAQ:ATVI) has had significant success with its Skylanders franchise. The videogame combines physical collectibles with gameplay via a portal device that allows players to quickly change the course of action in the software storyline. Consumers chase the rare figures, thus allowing Activision Blizzard a way to fight depreciation in the value of the industry because of the new digital age.

According to its Q4 2014 conference call transcript, the company reported that Skylanders has sold over 240 million toys, and that it was the top console game for kids for the reporting period. It was also stated that Skylanders has produced over $3 billion in sales at retail channels. This particular part of Activision Blizzard's business is undeniably important to the company and the stock.

Up until now, the portal has been used for a series of titles that is firmly targeted at the younger set (although older players can enjoy them as well, to be sure). Should the company expand the intended demographic for this device?

I believe it is time for Activision Blizzard to diversify its Skylanders franchise. There's no reason for the company not to target adults with a variety of titles that could mix in games that would be rated at the teen or mature levels.

Call of Duty is one of the big value drivers for the publisher. According to the 2014 annual report, that series, in combination with Skylanders and World of Warcraft, generated 67% of revenues for the company for the year ending 2014; for the previous year, the three properties were responsible for 80% of the top line. There's always a lot of debate surrounding the future of the war themed franchise. Is it getting long in the tooth? Should the company skip a year and let anticipation build for the next iteration? These are good questions for shareholders to think about.

Perhaps the answer might lie in the portal device. There's no reason a spinoff title couldn't be released in between main titles in the canon that would utilize figures in the gameplay. It would add immense interest to the IP by potentially turning it into a collectible asset. And there's also nothing to prevent Activision Blizzard from exploring the possibility of introducing figures into the regular, non spin off entries as well.

Changing things up with the Skylanders idea might seem risky. Some might say it is best to keep this as a younger targeted property. But using the portal as a platform for other concepts would be smart. It would allow the company to stay ahead of the curve. Also, multiple demographics could be targeted throughout the calendar year. Skylanders might be a Christmas release while something else would dominate the summer and keep interest in the platform going for all twelve months. And the company wouldn't need to produce as many figures for these other titles, as adults might not support a deep portfolio of characters as much as tweens might.

Disney (NYSE:DIS), although there has been no announcement as of yet, will presumably be coming out with Star Wars Infinity. The competitor to the Skylanders platform will surely be a big threat to Activision Blizzard's brand equity in this area. And I would assume that, although Star Wars is also pretty firmly ensconced in the younger demo these days, it will very much appeal to older gamers as well. This makes the conversion of Activision Blizzard's portal technology into a delivery system for older themed storylines a more compelling consideration. Further adding to the complexity of new market dynamics, Nintendo (OTCPK:NTDOY) has created excitement with its Amiibo collectibles.

Whatever capital investment Activision Blizzard would need to bring additional games and figures to the Skylanders portal would most likely be worth the risk. It would allow the company to extend some of its brands in new directions. Pairing Call of Duty, Destiny, and even something from the past like the Pitfall! trademark might represent a sound business model.


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