Activision Blizzard (NASDAQ: ATVI) stock hasn’t had a good ride in 2011, flopping about -7% while the broader market is up by nearly double digits. But after the close, Activision Blizzard Inc. reported earnings that included a 32% jump in net income for the first quarter of 2011 that topped analyst forecasts despite a major release during the first three months of the year.
ATVI stock has been bouncing back over the last few days thanks to high expectations for for the company’s quarterly earnings call after the bell today. But earnings are s only part of the story. The release date for its next Call of Duty game is also building buzz for Activision stock.
Activision game Call of Duty: Black Ops has remained one of the top five best-selling video games for six months straight. Of course, that’s not the only good news shareholders received on Monday. A report originating at U.K. outlet Eurogamer revealed the release date for the next entry in the franchise. Call of Duty: Project Colossus, expected to be officially named Modern Warfare 3, will hit retailers on Nov. 8, 2011.
News of the exact release date for the next project in the billion-dollar series hit much earlier than expected — ATVI was expected to reveal details about the game during the first week of June. But any information about the next Call of Duty is bound to cause renewed interest in Activision Blizzard from both consumers and investors thanks to its unbelievable success in the past four years.
The aforementioned Black Ops, released on Nov. 9, 2011, sold 7 million copies in its first 24 hours and netting ATVI more than $1 billion in sales in its first six weeks on shelves. It has since become, according to the NPD Group’s Anita Frazier, the best-selling video game in U.S. history. Another title in this Activision series could be big news for investors.
Project Colossus, or Modern Warfare 3, is expected to be somewhat different than previous entries in the series. ATVI CEO Bobby Kotick said a “digital platform” will be built around the Call of Duty franchise to add services (available for a fee, one would think) through the Internet to players. It is suspected that ATVI detailed the new service to press last week at a press event in New York, but details have yet to be made public.
Investors troubled by the ATVI stock slump may get excited about in the new developments around the Call of Duty brand.
As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.
