NEW YORK (TheStreet) -- Activision Blizzard (ATVI) shares are flat at $25.30 in pre-market trading on Friday following a report by industry research group SuperData Research that showed that May U.S. digital sales rose 11% year over year led by Activision's 'Call of Duty: Advanced Warfare' video game.
Digital game sales reached $979 million in May, a month in which SuperData says sales usually plateau ahead of the summer season and the busy holiday season.
However, despite a lack of increase in the number of gamers, both digital console and digital PC downloads saw increases in revenue of 17% and 12%, respectively, with digital console revenues reaching $67 million while PC digital revenue was $203 million.
The data was released ahead of the annual Electronic Entertainment Expo (E3) next week in Los Angeles where video game makers showcase some the industry's most anticipated video games and consoles.
Revenue from traditional non-digital video games is expected to be above $16 billion this year with total video game sales topping out at about $20 billion, according to USA Today.
TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."