Activision Blizzard, Inc. (NASDAQ:ATVI) has launched ‘Destiny’, what is being touted as the most expensive game in video game industry. Although the company has spent $180 million in development of the game, if the figures for promotion and royalties to gaming console manufacturers is included the total comes to around $500 million. The Street is divided in views regarding the game, while some feel that Activision Blizzard has spent too much on just one game others believe that the money that has gone in making this game will ensure that it becomes a grand success. Michael Pachter, managing director of equity research at Wedbush Securities, recently discussed on CNBC whether making such an expensive game is a wise move by Activision Blizzard, Inc. (NASDAQ:ATVI).
“[…] Of course they are going to break even, they are going to make money, the marketing budget is something that will support sales. We actually saw a prime time television advertising, Sunday night and Monday night on American football […] So Activision is all-in on this game, it’s probably going to sell 12 to 15 million units in the next few months […],” Pachter said.
Patcher feels that the downloads, which will be launched for this game later, will provide recurring revenues to Activision Blizzard, Inc. (NASDAQ:ATVI) and will ensure that the company keeps on making money on this game. He believes that even if Destiny doesn’t turn out to be the biggest game in history, a place currently occupied by the Grand Theft Auto series, it can achieve half of its the success. Patcher revealed that he found the graphics of the game to be the best that he has ever seen, saying that it’s almost as realistic as watching a movie.
As of June 30, 2014, Israel Englander’s Millennium Management owns over 5.4 million shares in Activision Blizzard, Inc. (NASDAQ:ATVI).