NEW YORK (TheStreet) --Activision Blizzard (ATVI) CEO Bobby Kotick says the number of spectators that watch eSports competitions out numbers the viewership of both the NFL and NBA, and he has plans to capitalize on this.
The gaming company CEO sat down with CNBC's Andrew Ross Sorkin at the Vanity Fair New Establishment Summit to discuss his opinions regarding both the future of virtual reality technology and eSports.
"I think there will always be an opportunity for specialized hardware that is dedicated to the gaming experience, I don't see that going away anytime soon. But, you have so many things that are enhancing the game experience, whether its AR or VR," Kotick noted.
However, he said that Activision Blizzard would not roll out VR products "until we feel like we are pushing the art form forward."
Regarding eSports, he's noticed the number of spectators of these online gaming competitions has risen to 100 million, watching what he described as "user-generated" content.
"What we're doing is creating professional content. So we're organizing around teams and leagues. You will have the Overwatch League which will have a certain number of teams. Those teams will be a combination of professional sports teams as owners and endemic sports teams as owners," Kotick explained.
People should expect to see the emergence of professional leagues, with in-person spectating, and arena events, he noted.
Shares of Activision Blizzard were declining in early morning trading on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: ATVI