Video games were once the domain of children and “computer geeks.” But the industry has undergone a major transformation in the last 10 years and is now an integral part of the entertainment genre. Some video game players actually earn well over six figures by competing in tournaments.
One company is capitalizing on this trend, and should be a part of your portfolio. Activision Blizzard (ATVI) is a third-party developer of video games. This means it develops games for all game platforms, including Sony Playstation 3, Microsoft Xbox, and Nintendo Wii and Nintendo DS.
The company has the current best-selling video game franchise, Guitar Hero, as well as other popular franchises, including Call of Duty, James Bond, and the online goliath known as World of Warcraft. comes from a recent merger with Vivendi Games, completed in July. This merger will allow Activision to challenge Electronics Arts as the #1 third-party developer of video games.
With the current economic downturn, you might expect demand for video games to diminish. But I don’t think it will. Dollar for dollar, video games offer more than many other entertainment options, including movies. Games can be played over and over again, and the experience is different every time. Also, the demand for consoles – the machines the games are played on – shows no sign of slowing. In fact, demand for the Nintendo Wii is still outstripping supply.
All of this leads me to believe that there is still plenty of growth ahead for Activision. And with the holiday season right around the corner, sales should be even stronger.
Add Activision to your portfolio and get excited about video games. Maybe even pick up a copy of Guitar Hero and see what the fuss is about.[Ed. Note: Despite the gloom and doom surrounding the economy, you can still find ways to make money in the markets. Discover a “long-lost” trading method that the wealthy use to get even richer – a system that’s so simple, it’s almost embarrassing.]