...represented 82.6% of the market’s overall value. In comparison, the sales of personal computing games represented 17.4% of the market’s aggregate revenues”. In this way, development of new hardware sales usually drive the demand for development of high performance gaming software, as illustrated below9. As depicted previously, the future market value of this industry in the United States is expected to grow by 5% for the next five years, and total market value of $10.3 billion by the end of 201110. In comparison, the Asian market, UK market, and the French market are expected to grow with CAGRS of 15%, 8.9%, and 2.4% over the same five year period11. 2.2 Competitor Analysis The interactive gaming industry is comprised of 86 competitors as of 200812, with more consolidations of companies likely in the future due to the increased threats faced by piracy, increased competitive factors, riskiness due to...
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...PURPOSE Recently, Activision Blizzard, Inc. successfully purchased shares from its parent conglomerate, Vivendi, in order to gain more control as a subsidiary. The reasons for the split will be examined in this report, as well as the current shareholders’ reaction to these significant changes. In addition, there will be an analysis of the negative effects for Activision Blizzard, Inc. that results from the deal between the two companies. The report will then discuss the main issue of the low amount of cash on hand. The final stages of the report will provide strategic recommendations for a plan of action to help the company overcome this obstacle, while remaining the top developer and publisher in the interactive gaming industry. There are several goals that the report hopes to accomplish. First, it will provide insight into a company that dominates the entertainment software industry. Second, the study will illustrate the drastic change in a company’s cash on hand after the purchase of shares. Third, it will propose new ways for the company to continue its momentum and match its past success. Finally, the goal of the report is to establish Activision Blizzard, Inc. as a company that has broken free from its parent conglomerate. PROBLEM STATEMENT The Deal The announcement that Activision Blizzard, Inc. and Vivendi would engage in a deal that would make Activision Blizzard, Inc. majority shareholder left the minority shareholders in the dust. As of June 30, 2013...
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...OREGON INVESTMENT GROUP 12/04/2009 Technology Activision Blizzard, Inc. RECOMMENDATION: HOLD Stock Data Price (52 weeks) Symbol/Exchange Beta (Regression) Shares Outstanding Average daily volume (3 month average) Current market cap Current Price Dividend Dividend Yield Valuation (per share) DCF Analysis Comparables Analysis Target Price Current Price Summary Financials Revenue Net Income 2008A $3,026,000,000 -$107,000,000 $8.14 - $13.14 ATVI / NASDAQ 0.625 1,271,000,000 16,067,500 14,476,690,000 $11.39 N/A N/A $15.25 $4.74 $12.10 $11.39 Covering Analyst: Sean Golin Email: sgolin@uoregon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held various employment positions with firms held in UOIG’s portfolio. In addition, members of UOIG may attempt to obtain employment positions with firms held in UOIG’s portfolio. Activision Blizzard, Inc. BUSINESS OVERVIEW university of oregon investment group http://uoig.uoregon.edu Activision Blizzard, Inc. is located in Santa Monica, CA. They are responsible for creating and publishing video games and accessories. These games are distributed and available on a wide range of platforms across the globe. Additionally, Activision Blizzard maintains and operates Battle.net, a online-game...
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...Activision Blizzard Analysis Activision Blizzard (ATVI) is a leading international publisher of interactive software products and downloadable content. Being a main player in the video games industry, the company has acquired several essential business strengths that made it succeed for a number of years. From making products carrying popular brand names, the company also takes pride of its product lines and innovative staff. Despite their strengths, Activision Blizzard has also encountered different problems that need to be addressed. These include the reduced slate of titles on a going-forward basis as well as the growing competition in the industry. To address these business concerns, it has been recommended that the company should consider limiting its product portfolio as well as conducting its target markets. This should help the company stabilize its financial status through sales generation and cost reduction. Company structure: Activision Blizzard organizational structure is base on 3 business segments. Activision Publishing, Inc. develops and publishes video games on various consoles handheld platforms and the PC platform. Activision also develop digital downloads to their game titles through retail channels with certain third-party publishers. Blizzard Entertainment, Inc. is well know to online gamer through Battle.net. Battle.net. host all Blizzard develops multiple award winning titles online such as Diablo, StarCraft, and World of Warcraft. The World...
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... 1. SWOT analysis SWOT analysis is a business tool that helps a corporation of any size to assess its viability. The tool helps to identify major pros and cons in the industry of choice. The SWOT analysis assesses strengths, weaknesses, opportunities and weaknesses for the business. The tool is a great tactic that can be used to identify the state of a market or industry at any point in time. For this case, the company that is given consideration is Electronic Arts. The company was established in 1982 under the operating name Amazin’ software. The company changed the name to Electronic Arts and continued to develop games and sell games. In the decade between 1980 and 1990 the company enjoyed major success in the gaming industry. At the end of 1989, the company had become a publicly traded company. The revenues of the company increased from an average one hundred and thirteen million dollars to two hundred and ninety eight million dollars within two years from 1991. The success continued until 2006, when they were knocked off the number one spot by a rival named Activision. The SWOT analysis is a tool that could have been used to help Electronic Arts to strengthen their position in the gaming industry. The application of the SWOT tool would have analyzed the market trend, the competition, the internal structure of the company, weaknesses of the company, the innovative opportunities available, and also identify the direct threats in the market. The SWOT analysis tool could...
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...Introduction Activision Blizzard is an American video game developer and publisher who is held by the French Vivendi group. It is the largest game developers and game publishers, and the first third-party game publishers in the world . Activision Blizzard was made by Activision and the U.S. Department of Vivendi, Blizzard Entertainment, on December 2, 2007, and Entertainment in July 9, 2008. The total operating funds is $ 18.9 billion . In November 2009 , Activision Blizzard 's first -person shooter "Call of Duty : Modern Warfare 2" 4.5 million the number of pre-sale , and $ 400 million sales in the first day, what break the highest first day sales in the Guinness World record. Another major business of Activision Blizzard Blizzard Entertainment is a popular online role -playing game "World of Warcraft " and " Warcraft " series. From the market price, Activision Blizzard is the largest independent video game publishers in the world, because before the merger , the Activision is the second largest third-party game producers and publishers, and the EA Inc. is the biggest at that time. After merged, Activision Blizzard is not only more than EA, became the first major third-party publisher of the game , but more than Nintendo, became the first major game production and distribution company . 2. Industry Structure and Global Markets In their market, Activision Blizzard is facing competition, and they have two major competitors. The company exports many kinds...
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...published by the company to summarize the transactions that went on throughout the year. Activision Blizzard, Inc, is a worldwide online, personal computer, video game console, handheld and mobile device game publisher (2012 Annual Report, Activision Blizzard Inc). The main sections of its annual report are the statement of operations, balance sheet, and the statement of cash flows. Annual Report Main Sections The statement of operations, also known as the income statement, is used to access the performance and financial position of a company (Kelly & McGowen, 2012). It performs this action by listing the revenue collected minus the expenses deducted to give a net income or net loss. Activision Blizzard Inc., its total revenue was higher that its total expense thus when put into the equation revenue – expenses with the revenue higher the company received a net income. The balance sheet, sometimes called the statement of financial position, is the summary of the companies financial balances (Kelly & McGowen, 2012). The balance sheet shows the company's assets, liabilities and owner's equity. This is information is presented in an equation where the assets must be equal to the liabilities plus the owner's equity. The statement of cash flows is the financial statement that shows how the changes in balance sheet accounts and income are affecting the cash and cash equivalents, and it breaks down the analysis of investing, operating and financing of company activities (Kelly...
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...use of SWOT Analysis could have helped Electronic Arts (EA) to identify its strengths, weaknesses, opportunities, and threats. Particular, if EA used the SWOT analysis they would identify the weaknesses in their management style. The EA managers are profit and productivity driven while the developers are driven by creativity and freedom. EA managers often demand unrealistic deadlines, set up unfair bonus distribution system and deprive the original developers of freedom and creativity. All of these conditions make many of their developers quit. However EA managers didn’t care so much about this because they could always move on. That is because one of their managerial strategies was to acquire as many studios as they could. Even though, EA managers’ strategies used to work for EA in the past, with rising power of Activision, these strategies had to be revised. That is because Activision’s raising power and preferred management style gain over many of EA developers depriving EA of its best people. The STOW analysis would help EA to identify their weakness in managerial tactics when facing the rising power of rivals. The SWOT analysis would also help the EA to anticipate the threats of Activision rising marketing power. For example, in the past EA was the largest supplier of entertainment software, while Activision was far behind. Activision had an impressive history; however their sales figures were not so impressive. That clouded EA’s judgment about Activision. However, after...
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...Team 1 Company Analysis 1 Jackson Berry, Will Berman, Amanda Curtis, Jenny Zhang Professor Belz Case Studies in Innovation March 3, 2016 NintenDON’T Nintendo captured many hearts and households in the late 1980s, and its legacy lives on through the games that made it the bestselling console of its time. Revolutionizing the world of video games, Nintendo survived the burst of the video game bubble through its storytelling across multiple game console platforms. Their products were conceived at the intersections of inexpensive hardware and unique, beloved storytelling in their games; this combination made their console a household staple. In an era of heartthrobs and fads, Nintendo rose above and surpassed a simple level of trendiness. The company defined gaming innovation: “to play Nintendo” became synonymous with video gaming. 1983 saw the first recession in the video game industry in the form of the “Atari Shock,” after the market became too populated with so many different games and consoles. This caused an oversaturation of the console industry, which was already competing heavily with home computer games. Thus, the “Atari Shock” was a flooding of a market in which no player had a majority share, and the excess of thirdparty games resulted in decreased shelf space and decreased sales. People started believing video games were a fad, and amidst the chaos, the Nintendo Entertainment System (NES) was born. Nintendo made purposeful branding decisions ...
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...Company: Activision Blizzard, INC. (ATVI) PESTLE 1. Political Pg. 10 – Our products are sold internationally on a direct-to-retail basis, through third-party distribution and licensing arrangements, and through our wholly-owned European distribution subsidiaries. We conduct our international publishing activities through offices in the United Kingdom ("U.K."), Germany, France, Italy, Spain, Norway, the Netherlands, Sweden, Australia and Ireland. • Activision Blizzard Inc. is an internationally traded company and most of its revenue is generated from foreign trade. Therefore it is subject to various foreign and domestic laws. Fluctuations in these laws such as increased tariffs, duties, transportation costs and instabilities in the currency exchange rates can adversely impact company’s operations in the foreign market. 2. Economic Pg. 13 – Our products involve discretionary spending on the part of consumers. Consumers are generally more willing to make discretionary purchases, including purchases of products like ours, during periods in which favorable economic conditions prevail. • Consumers purchasing trends have a direct relationship with economic condition. Therefore, current economic condition and global recession is likely to reduce consumer spending on the products which can have a negative impact on company’s operations and financial position. 3. Socio-cultural Pg. 10 –We often seek to maximize our worldwide revenues and profits by releasing high-quality...
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...Technology Strategic Plan Blizzard Entertainment, Inc. is an American video game developer and publisher company based in Irvine, California. Founded in 1991, by three University of California, Los Angeles graduate’s students, Michael Morthaime, Frank Dearce and Allen Adham, under the name Silicon & Synapse. Before 1993, the company primarily focused on creating game ports, a connector for video game input devices, for other studios. After being acquired by Davidson & Associates, a distributor company, in 1994, the company became known as Chaos Studios and shortly after Blizzard Entertainment, Inc. Blizzard’s mission is dedicated to creating the most epic entertainment experiences…ever (us.blizzard.com.). With eight core values that represent the principles and beliefs, has shaped this company throughout the years. Their goal is to make every game as fun as possible for as many people they can reach. To improve the quality of the gaming experience, Blizzard Entertainment seeks honest feedback from gamers. Understanding that first and lasting impressions are everything in the gaming industry, the company strives to maintain a high level of respect and integrity in all interactions with players, colleagues, and business partners. Everyone has a little geek in them. With cutting edge technology, comic books, science fiction and top-end video cards, Blizzard helps gamers embrace their inner geek with fun and creative games. For a company to succeed, they must embrace...
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...1. A SWOT analysis would really benefited EA. A SWOT analysis includes strengthens, weaknesses, opportunities and threats of managing the company. Realizing and recognizing companies strengthen would have helped EA to improve their popularity in gaming market. The most important thing in their times was that EA was almost the only company that were making video games for all computer systems and game consoles and it was their most powerful tool. Finding weaknesses in their company would helped them to recognize problems and areas that must be improved in video games and in customer service as well. 2. In my opinion it easy to understand why EA lost their leadership according to Porter’s generic strategies. The theory states and features cost and uniqueness of a product. EA were producing their product for a lower price but were selling the product for a high price. And tried to focus on their product to make it better but they failed because they were selling products for a high price and still not solving the problems. 3. Concept of product life cycle is relevant to the video game market because video game companies has their product introduction to the market, and then it hopefully can grow, mature, and as it usually happens products decline and company must come up with something new to keep their business going up. 4. If I would open my small video game company I would try to use SWOT analysis chart and find out what strengthens I can offer to costumers, what...
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...As of December 3, 2014, our portfolio ranked #3 overall with $103,639.82 3.64% in return with only 5 trade. You might think we are lazy to put effort into the stock simulator. This is not true because we had a strategy behind our action. Most teams pick stock with fundamental analysis (P/E or debt-to-equity ratio etc.) buying lots of different company stock and diversify the risk of losing money. But this is not the case for our team, we pick stock based on our personal interest. For example, some people like using Windows computer while others prefer Mac computer. As you can see, we made a lot of money on EA (23.96% return as of December 3, 2014) we were both interested in the entertainment industry and we decide to go with it. (I ensure you we are not a huge gamer!) I believe buying stock is like choosing something you interested or familiar with. Otherwise, you are gambling your money because you are buying something you have limited knowledge and not familiar with the industry. Before our first trade, I first defined our objective. Instead of making the most return, “Don’t lose money” is our #1 rule because we are winning as long as we don’t lose money. For this reason, we only buy stock that we believe it will growth within the 3 months period. KMB is our first stock that we bought. We bought it at $105.83 and is now selling $114.7. I like KMB long time ago because its steady growth trend had lasted for the past 3 years. The reason why KMB can growth steadily is because...
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...the NPV you are going to use the formula NPV=(1,100,000/1.15)+(1,450,000/1.15)^2+(1,300,000/1.15)^3+ (950,000/1.15)^4-3,000,000=$450,866.74. Attached is the excel spreadsheet that shows the work. 3. Based on what the NPV is for this project the company should definitely consider accepting this project because the NPV is greater than 0. Anytime the NPV is greater than 0 it means it will make the company money so therefore the company should be accepting the project. 4. Well first to answer the question you have to know what depreciation is a non-cash expense that reduces the value of an asset over time. So now knowing that, depreciation is not considered a cash flow but it does generally reduces a company’s tax liability. Anytime you reduce a company’s tax liability it will cause an increase to the present value of the project. 5. So first thing we need to do is explain what each one of these means and then we can relate them to the project. * Sunk Cost: Sunk costs are cost to the company that have already been incurred and cannot be recovered by any means. In this example Air Jet hired a group to come in and evaluate the feasibility and the utility of acquiring a new machine for them to use. Even if the company does not get the machine the money that they spent has already been spent and they cannot recover it by any means. * Opportunity Cost: Opportunity cost is basically any cost of any activity measured in terms of the value of the next best alternative...
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...Two Interactive Software, Inc. 10-K report date: 5/23/2012 10-K Report Link: http://secfilings.nasdaq.com/edgar_conv_html%2f2012%2f05%2f23%2f0001047469-12-006226.html#FIS_BUSINESS Article: Fff PESTLE Forces: 1. Political- Page 17- many foreign countries, particularly in those with developing economies, it may be common to engage in business practices that are prohibited by United States laws and regulations, such as the Foreign Corrupt Practices Act, and by local laws, such as laws prohibiting corrupt payments to government officials. Although we implement policies and procedures designed to ensure compliance with these laws, there can be no assurance that all of our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, including those based in or from countries where practices which violate such laws may be customary, will not take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have a material adverse effect on our business. Because of the growing international operations of Take-Two the risks of not complying to foreign laws and regulations could result in increased costs and decreased sales. Take-Two has policies and procedures that follow laws like the Foreign Corrupt Practices Act. But there is no guarantee that all employees or involved parties will follow these laws and regulations. 2. Economic- Page 8- We continue to monitor economic...
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