Activision-Blizzard, one of the world’s biggest video game production companies, is continuing to grow as the world goes through stay-at-home trends. This news comes following a big first quarter in which bookings for the company grew 36% while the organization added 38 million users.
Even though more companies are entering the gaming space, Activision-Blizzard remains a force in the esports market. This success can be attributed to the company capitalizing on the battle royale trend and creating multiple popular titles across several genres.
With that being said, other giant tech companies are making their way into the video game market. These massive organizations could potentially pose a threat to Activision-Blizzard in the future.
“Activision Blizzard has cemented itself as a leader in the booming gaming industry. Even at its current market capitalization of $75 billion and forward P/E ratio of 25, the company still has more room for upward movement. The gaming industry is expected to experience a double-digit CAGR for the foreseeable future, and Activision Blizzard is arguably best positioned to capitalize on this growth trend,” read an article on Seeking Alpha. “No other video game pure-play is as dominant as Activision Blizzard across multiple genres. While Activision Blizzard may not have as much growth potential as some competitors like Take-Two, Activision Blizzard is relatively a safer investment.”
(All information was provided by Seeking Alpha)