Pachter: “All things are not perfect in Activision’s world”
With Activision‘s recently submitted financial performance report for fiscal year 2007, avid gamer and analyst Michael Pachter of Wedbush Morgan Securities remained optimistic about the future for Activision. For the fiscal year 2008, Pachter estimates a US$ 1.8 billion in revenue for the company, while eyeing a US$ 2 billion in revenue for 2009.
He also recommends a “Strong Buy” for the company’s stock as a result, from a US$ 23 to US$ 24.50. But according to the analyst, “All things are not perfect in Activision’s world.” The so-so reviews of the game adaptation of blockbuster hit Spider-Man 3 were especially questioned by Pachter.
And then came the news that Call of Duty 4: Modern Warfare was to be set in present-day Iraq, which Pachter points out as a bad move for the company. He said:
We understand that Call of Duty 4: Modern Warfare is set in Iraq in the present, and we believe that if true, there is some potential for sales to suffer as a result of widespread dissatisfaction with the U.S. war effort in that country. Of course, prior to release, it may be possible to change the venue for the game (we prefer the fictional country of Kreplachistan), and we are confident that Activision will consider carefully how to best position the product in the marketplace this fall.
That’s not all: due to recent friction between Harmonix and Electronic Arts‘ Rock Band with upcoming Red Octane and Activision’s riff-maker Guitar Hero III, Pachter expects one tough fight ahead of the publisher. He expects that the original creators of Guitar Hero, Harmonix, will be able to create a competitive title against its former franchise with Rock Band, even if the analyst has heard little details about the new game under Electronic Arts’ wing.
With Activision‘s recently submitted financial performance report for fiscal year 2007, avid gamer and analyst Michael Pachter of Wedbush Morgan Securities remained optimistic about the future for Activision. For the fiscal year 2008, Pachter estimates a US$ 1.8 billion in revenue for the company, while eyeing a US$ 2 billion in revenue for 2009.
He also recommends a “Strong Buy” for the company’s stock as a result, from a US$ 23 to US$ 24.50. But according to the analyst, “All things are not perfect in Activision’s world.” The so-so reviews of the game adaptation of blockbuster hit Spider-Man 3 were especially questioned by Pachter.
And then came the news that Call of Duty 4: Modern Warfare was to be set in present-day Iraq, which Pachter points out as a bad move for the company. He said:
We understand that Call of Duty 4: Modern Warfare is set in Iraq in the present, and we believe that if true, there is some potential for sales to suffer as a result of widespread dissatisfaction with the U.S. war effort in that country. Of course, prior to release, it may be possible to change the venue for the game (we prefer the fictional country of Kreplachistan), and we are confident that Activision will consider carefully how to best position the product in the marketplace this fall.
That’s not all: due to recent friction between Harmonix and Electronic Arts‘ Rock Band with upcoming Red Octane and Activision’s riff-maker Guitar Hero III, Pachter expects one tough fight ahead of the publisher. He expects that the original creators of Guitar Hero, Harmonix, will be able to create a competitive title against its former franchise with Rock Band, even if the analyst has heard little details about the new game under Electronic Arts’ wing.
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