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Which Games Are Likely to Drive Revenue for Activision and EA?

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Oct. 25 2017, Updated 9:09 a.m. ET

A broad portfolio of games for Activision

Activision Blizzard (ATVI) has a broad portfolio of games across genres. A few years ago, the company banked on games like World of Warcraft, Skylanders, and Call of Duty to drive revenue. These three games accounted for almost 80% of the company’s total revenue in fiscal 2013. Peer company Take-Two Interactive (TTWO) is currently in a similar position, as its flagship game, Grand Theft Auto, accounted for approximately 40% of its total revenue in 2016.

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While it’s good to have blockbuster franchises, companies shouldn’t depend on a single game for revenue generation. Activision Blizzard now has several games—such as Destiny, Overwatch, and Hearthstone—driving revenue. Activision Blizzard also acquired King Digital last year to expand its presence in the digital gaming segment. Activision’s Call of Duty: World War II is slated for a November release, and it’s expected to drive revenue this holiday season.

Activision is also optimistic about the launch of Destiny 2, which won the E3 Game Critics’ PC Game award.

FIFA 18

On September 29, Electronic Arts (EA) launched the highly anticipated FIFA 18 on the PlayStation 4 (SNE), Xbox One (MSFT), and Nintendo Switch as well as the PlayStation 3, the Xbox 360, and PC. While this game is unlikely to impact EA’s revenue in fiscal 2Q18, it’s expected to drive revenue in fiscal 3Q18 and beyond.

Madden NFL and NHL 18

EA’s Madden NFL launched in fiscal 2Q18, and the game has a unique story mode. EA aims to launch its eSports segment with the Madden NFL in fiscal 2018. Plus, NHL 18 is reported to offer a variety of ways for friends to team up, with more than 60 combinations of co-op and online multiplayer modes.

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