This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Call of Duty: Black Ops to Smash Records

NEW YORK ( TheStreet) -- Activision (ATVI - Get Report) jumped more than 3.5% in early afternoon trading Monday on hype that its new Call of Duty: Black Ops game will break video game sales records.

The game is already tracking to surpass records set last year by its predecessor, Call of Duty: Modern Warfare 2, which sold 4.7 million copies its first day of global sales.

In October, retailer GameStop (GME - Get Report) said pre-orders for Black Ops were higher than those for Modern Warefare during the same timeframe.

Amazon (AMZN) also tweeted last week that Black Ops pre-orders had exceeded those of Modern Warefare.

Domestic pre-orders of Black Ops are around 3 million, said Daniel Ernst, an analyst at Hudson Square Research, who expects combined one-day global sales to "materially surpass" those of Modern Warefare.

However, overall quarterly sales of Black Ops are expected to be 10% to 20% lower than its predecessor, said Janco Partners analyst Mike Hickey.

Infinity Ward, the studio that created Modern Warfare, is traditionally regarded as higher in quality than Treyarch, which developed Black Ops, Hickey said. "The higher quality and the modernish tweak to the gameplay for Infinity Ward gives [<i>Modern Warefare</i>] a sales advantage," he said.

Anticipation for the game was evident over the weekend as robbers stole more than 100 copies of the game from a GameStop in Baltimore.

Last week, Activision beat third quarter sales and profit estimates, as adjusted profit rose to 12 cents per share, from 4 cents per share last year. Analysts had expected profit of 9 cents per share.

Adjusted revenue jumped to $857 million from $755 million during the year-ago quarter. Analysts had expected revenue of $747 milllion.

Despite Activision's strong performance, the video game industry has suffered from a drop in software sales as consumers have moved towards online channels. Software sales declined 6% in September to $614 million, according to NPD.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ATVI $25.79 0.00%
GME $45.85 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs