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Cowen worries over Activision's 'Destiny 2' struggles

Published 01/23/2018, 03:50 PM
© Reuters.  Cowen worries over Activision's 'Destiny 2' struggles
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  • Cowen has reiterated its Market Perform rating on Activision Blizzard (ATVI +0.5%), noting that add-on revenue should suffer from dissatisfaction over its Destiny franchise.
  • Destiny 2 is "struggling right now with player engagement appearing to be on the wane," analyst Doug Creutz says in the note. Contrast that with higher expectations for live revenue around 2017 top-seller Call of Duty: WWII, he says.
  • Microtransactions are a problem, he notes -- not as big a problem as for Star Wars: Battlefront II (NASDAQ:EA), but still a "source of player unhappiness."
  • Several key video streamers have indicated that they'll reduce content around the game in the future, and Twitch viewership is at franchise-low levels of 4,000-7,000 on average Friday afternoons.
  • He reiterated a $66 price target for ATVI, implying 7.9% downside from current.
  • Now read: Electronic Arts: 2 Reasons Why I'm Selling My Shares


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