Activision Blizzard, Inc. (ATVI): This Company Will Save the Video Game Industry

It will have its fans though, thanks to the familiar characters and settings from Disney’s most popular movies, like the campus in Monsters University, and the ability to customize your terrain in the manner you like, but Activision goes for detail in Skylanders, not to mention characters more vicious-looking than Mike and Sully, which will make the game more appealing to hardcore gamers, Activision’s main demographic, but both will do very well, and that’s bigger for Activision than it is for Disney (which will have Kingdom Hearts 3 coming out next year anyway).

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Activision is even better for investors right now. With a cheap forward P/E of around 15, and a price of $15.22 per share, it is a steal for investors headed into the big holiday shopping season, where Activision will feature prominently on kids’ wish lists and on store shelves next to the new consoles.

With Skylanders looking to be a hit, keep your eye on potential copycats like Electronic Arts Inc. (NASDAQ:EA), whose games like Star Wars: The Old Republic borrow heavily from the Warcraft series in terms of gameplay mechanics and pricing, may be tempted to introduce a Skylanders-like game of their own to compete with Activision Blizzard, Inc. (NASDAQ:ATVI). It would be good for Electronic Arts Inc. (NASDAQ:EA) to do that, but it also shows that Activision is one of the alpha-male companies that lead and set trends.

Activision was around for the Atari and the Genesis, it prospered with the Xbox and PS2, and now with the world wondering whether or not consoles are still important, Activision is set to give hope to the industry, and to hardcore gamers.

The article This Company Will Save the Video Game Industry originally appeared on Fool.com and is written by John McKenna.

John McKenna has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and Facebook. The Motley Fool owns shares of Activision Blizzard and Facebook. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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