Activision Blizzard, Inc. (NASDAQ:ATVI) and GameStop Corp. (NYSE:GME) are the two major companies in the gaming segment. Wedbush Securities Research analyst Michael Patcher, on CNBC has provided some of his insights regarding the potential and the future of these two companies.


Patcher said that the stock of Activision Blizzard, Inc. (NASDAQ:ATVI) is misunderstood by many people. He feels that they have three big franchises, World of Warcraft, Call of Duty and Skylanders. He added that all Activision’s franchises are matured and have a vast experience.

“[…] Investors think they are due to decline. We are at the beginning of a gaming cycle. They are not going to decline. Blizzard is doing really cool things with a free to play game called ‘hearthstone’ and I think Activision is going to surprise the rest of the year,” Patcher said.

GameStop Corp. (NYSE:GME) stock had a lot of ups and downs in the past and a lot of investors are very cautious about this one.

Patcher pointed at the instant exactly a year ago when the GameStop Corp. (NYSE:GME)  stock increased significantly and then dropped. He feels that the GameStop’s stock is a stock with a lot of uncertainty. He added that it might drop down whenever someone talk about digital or digital downloads and the stock increases during the reporting time.

Patcher thinks that GameStop Corp. (NYSE:GME)  is going to have a big quarter to come with big holidays to come. He considers they will gain share in a growing market. He accepts that the digital download is a big threat to the company, which might take some shares out. But he thinks that this might have an impact on the company only in the very long term.

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