Activision Blizzard: Guitar Hero World Tour Launches, Earnings Loom–Recession-Proof or Recession-Resistant?
Activision Blizzard (ATVI) shares are sliding following this weekend’s debut of Guitar Hero World Tour, the latest version of the company’s popular music game. UBS analyst Benjamin Schachter says his assessment of the first day of sales was mixed: near sellout sales of Wii and Xbox 360 versions of the game at many locations, with PS3 kids often in stock. He said the guitar-only and game-only versions of the games were shipped in larger quantities but did not seem to be selling as well as the full version of the game. He also says that a small minority of buyers is reporting issues with the drum kit that comes with the game.
On a broader subject, Schachter says the videogame industry is likely to be recession-resistant, but not necessarily recession-proof.