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- 1 Diablo IV has reportedly generated over $666 Million within five days.
- 2 ATVI stock has gained almost 12% since May 2023.
The pending deal between Activision Blizzard (NASDAQ: ATVI) and, an American video game company, and tech giant Microsoft (NASDAQ: MSFT) is getting high and dry with time. The company shares, however, do not seem affected by the scenario considering ATVI stock has gained almost 12% since May 2023. Currently, the stock price was changing hands at a market value of $81.9 at the publication time.
Mobile Gaming Could be a Booming Market For Activision Blizzard
The recent jump in ATVI stock might be associated with the release of Diablo IV, an online multiplayer role-playing game. The game has reportedly generated over $666 Million within five days. This has rendered it the fastest-selling game in the company’s history.
Microsoft’s potential acquisition of Activision Blizzard might have a fatal impact on the Call of Duty publisher’s business. The Xbox maker could make several Activision games exclusive to Game Pass, their subscription-based cloud services. However, the United Kingdom’s Competition and Markets Authority (CMA) blocked the deal in April 2023 according to business news provider CNBC. The news had a direct impact on ATVI shares with the price going down by 8%.
Phil Spencer, Microsoft Gaming CEO and head of Xbox, recently took a direct aim at Sony’s PlayStation. According to an American sports magazine, Sports Illustrated, he said that “Every time we ship a game on PlayStation… Sony captures 30 percent of the revenue that we do on their platform and then they use that money among other revenue that they have to do things to try to reduce Xbox’s survival on the market.”
Activision Blizzard and Microsoft’s deal might lead the Windows maker to increase its stakes in cloud gaming. Increasing the availability of high-speed internet in several countries may boost cloud gaming adoption globally. A study by market research provider, Technavio, highlights that the market is estimated to grow by $1.6 Billion between 2022 and 2027.
ATVI Stock Price Performance
ATVI shares have broken multiple fib levels between February and April 2023 as well as May and June 2023. The company has delivered positive earnings during its past three quarterly reports. Activision Blizzard beat its earnings per share (EPS) estimate by 17% during its latest financial report.
Woodies CCI was falling but has managed to stay above the zero line. Moving averages convergence divergence (MACD) was rising, highlighting increasing buyers’ dominance. Average true range (ATR) was falling, a strong sign of decreasing volatility in ATVI shares.
There’s still time for Microsoft’s deal to acquire Activision Blizzard as regulatory defenders are going full force to stop the deal, however, the European Union (EU) favored the acquisition to advance. If the deal happens, ATVI shareholders will get $95 per share. Apart from the acquisition, Activision Blizzard is currently performing well, especially in the mobile gaming market.
Warzone Mobile is gaining traction amid its limited release in nations including Australia, Chile, Norway, and Sweden. Mobile gaming is likely to become a major segment of the gaming market. According to a mobile marketing agency, Udonis, mobile games generated $92.2 Billion, accounting for half the revenue generated by the gaming market last year. Additionally, metrics from data aggregator Statista indicate the mobile gaming sector may become a $419 Billion industry by 2027.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
