“Guitar Hero” was a clean miss — but its competitor “Rock Band 4” also had a rough holiday, indicating that perhaps publishers’ return to music games with plastic instruments was premature.
While the short term is frustrating, 2017 is shaping up to be a strong year for Activision with the release of “Destiny 2,” a sequel to the action game from developer Bungie (the creator of the “Halo” series). And the completion of the acquisition of King (expected to occur in the coming weeks) will strengthen the company’s presence in the mobile market.
“The company still has great brands, a long-term track record, solid cash flow, and it should be able to benefit from the positive industry fundamentals and its longer-term bets over the coming few years,” said Ben Schachter of Macquarie Research.
Eric Handler of MKM Partners agreed.
“We continue to like Activision’s lineup for 2016 (even without a new ‘Destiny’ game), its overall portfolio depth and believe the acquisition of King Digital will prove more accretive than planned,” he said.