The biggest buzz of Ghosts has been the ability to play as a dog. Yes, a dog. In the game, you can play as Riley, an army dog that can attack soldiers, move through terrain, and lure enemies out by barking, into a sniper’s scope. Riley has already become a Twitter star overnight, according to CEO Eric Hirshberg, and while the gameplay mechanics of playing as a canine may make one chuckle and scoff, the instant attachment fans have to Riley is good press for the game, and for Activision Blizzard, Inc. (NASDAQ:ATVI).
The other big player is The Walt Disney Company (NYSE:DIS), which has stayed primarily out of the fiercest video game battles but emerged with the long anticipated Kingdom Hearts 3, Disney’s formerly PS-only series that made Mickey Mouse a video game hero by combining good combat with a great Disney-like plot. This time though, The Walt Disney Company (NYSE:DIS) is taking this game to the Xbox One as well, ending Sony Corporation (ADR) (NYSE:SNE)’s exclusivity, which doesn’t make too much sense outside of sales because Xbox users wouldn’t know how the previous two games went, making it more of a potential success on the PS4. Like The Walt Disney Company (NYSE:DIS)’s movies, the game is very cartoony in graphic detail, so it won’t have the polish that games like Battlefield will have, but it will still be a playable game with enough changes to lure fans in beyond the KH fanbase.
Another big announcement is Disney Infinity, a game that would allow players to build their own maps and create their own games and adventures with the multitude of The Walt Disney Company (NYSE:DIS) characters past and present. Players buy “sets” of maps and characters and create their own games based on those maps and the abilities of characters. Initially, the game has to follow the timelines of those characters in their movies or shows, but in “Toy Box” mode, they can deviate and even mix different backgrounds from movies, like merging the sea from Finding Nemo with Andy’s Room from Toy Story. It’s a bit whimsical for a hardcore gamer, but it provides a good look back at nearly a century of The Walt Disney Company (NYSE:DIS)’s greatest characters, which comes at a time when Disney is coming off acquiring Lucasfilm and commissioning 3 new Star Wars movies, meaning that the toy box will never run dry for this company.
The Foolish Gamer’s Bottom Line
Given how popular Ghosts will be out of the box, and on the back of a huge merger with Bungie, original makers of the Halo series, Activision is a great investment opportunity, though there is a closing window for the company. Its forward P/E is at 13.90, so it is still affordable, though it could become less so with time. Still, it has a healthy 30.93% operating margin, necessary for the big holiday shopping season ahead. With room for growth, and a recent expansion, Activision Blizzard, Inc. (NASDAQ:ATVI)’s future looks bright for any investor.
Disney is the least affordable of the three at a P/E of 15.99 , though it isn’t all bad. Its 15.43% return on equity is the best of the bunch, and has a 1.20% dividend yield for investors. So if you aren’t pinched in the pocket, Disney has some room for you, though if you want to add a pure gaming company, Activision Blizzard, Inc. (NASDAQ:ATVI) or EA look like better growth opportunities here.
Ok, so we have the consoles, and now we have some games. We have our console companies and our games companies. The most important E3 in a decade hasn’t disappointed yet, but there is still more on the way.
John McKenna has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and Walt Disney. The Motley Fool owns shares of Activision Blizzard, Microsoft, and Walt Disney. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Showdown at E3: Part II — It’s Game Time! originally appeared on Fool.com is written by John McKenna.
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