Activision Gets Very, Very Real

Jon Markman

If you haven’t seen a video game in a while, you’re going to be blown away. Advances in game graphics and more powerful computers, mean games from Activision (ATVI) and others look beautiful, and they are going to get even better.

Games built for the next generation Sony and Microsoft consoles, are going to look like actual films, according to Kim Liberi, chief technology officer at Epic Games.

He’s optimistic because game developers are finally getting enough horsepower to use all of the power of Unreal Engine 5’s Nanite technology, a set of code building blocks to make games look photorealistic.

In an interview with Video Games Chronicle, Liberi predicted more immersive and entire new gameplay concepts.

“Next-gen graphics and processing power will not only make games more immersive, but will also enable entirely new gameplay concepts that can take advantage of fully dynamic environments and lighting, much-improved physics, smarter AI, and richer multiplayer experiences.”

There is some justification for his excitement. John Favreau and LucasFilm used Nanite for several scenes in Mandalorian, an episodic science fiction drama currently airing on Disney+.

Investors can buy Epic Games indirectly through Tencent. The Chinese internet company bought an 48.4% stake in in the privately held company in 2013.

However, a better way to invest in video games is Activision Blizzard, the industry leader in terms of sales. It’s a great business with terrific franchises across consoles, personal computers and mobile. Titles include Call of Duty, Candy Crush and Overwatch.

The company began ramping up its investment in the tech to make games photorealistic in 2013. The arrival of next generation consoles means the hardware is finally ready to take advantage of software development. It’s a huge new opportunity for Activision and the entire sector.