On Tuesday, Activision Blizzard, Inc. (NASDAQ:ATVI) is set to release Call of Duty: Modern Warfare 3, which many analysts expect to be the biggest entertainment launch this year and maybe ever. Activision has already announced that pre-orders for the newest Call of Duty have “significantly exceeded” pre-orders for their previous installment, Call of Duty: Black Ops. Call of Duty: Black Ops sold 5.6 million copies on its first day of release. Call of Duty: Modern Warfare 3 should exceed those numbers.
Bobby Kotcick, CEO of Activision, believes strongly in their new social service launching beside the game called Call of Duty Elite. “We believe that Call of Duty Elite, which was built for Modern Warfare 3 and is expected to launch with the game on November 8, should redefine social connectivity for multiplayer gaming,” he said during their previous earnings report.
Activision Blizzard, Inc. is set to release earnings on Tuesday and analysts expect EPS of $0.02 and $558 million in revenue. Earnings for their next quarter will be significantly higher with the release of their flagship title Call of Duty.
Activision Blizzard, Inc. (NASDAQ:ATVI) closed the day Friday up 1.35% AT $13.56. ATVI traded above average volume with 9.71 million shares. The company has a current market cap of 15.50 billion.
Activision’s main competitor is Electronic Arts Inc. (NASDAQ:ERTS). Electronic Arts released their flag ship title, Battlefield 3, in mid-October and the game has seen critical and customer acclaim. Electronic Arts announced they have shipped over 10 million copies of Battlefield 3 and sold 5 million in the first week alone.
Activision is expected to sell more than 5 million copies of Call of Duty: Modern Warfare 3, but it will be interesting to see if Battlefield 3 cuts into the Call of Duty player base any.