Activision Blizzard, Inc. (NASDAQ:ATVI)

With WOW losing so many customers, can't see them outperforming at this point

They seem to be out of sync with the gaming world and I don't see how they will get themselves out of this quandary short of overhauling the entire business.

Nasdaq in maximums.

Pressure from groups who will tie gaming with tragedy in Connecticut.

Some would say ATVI is like 'the best house in the worst neighborhood'--there are better choices for your investment dollar out there--particularly not in the struggling gaming industry. I own ATVI because it's a longtime favorite pick on TMF. Why it's a favorite I don't know, but I'm trying to be patient hoping the reason will be revealed.

Slow movement toward mobile, casual gamers. Being outmaneuvered by EA in terms of both mobile and sports games. Heavily reliant on core-gamers, whose numbers seem to be dwindling as of late. Next generation consoles from microsoft and sony are still a year or so away.

it's that time again

MACD large downward gap and doesn't look oversold.

It's better this way.

According to Google Finance's ATVI balance sheet, the total current assets as of 12.31.2011 equaled $5,380 million and the total assets was $13,277 million. The sum of the net goodwill and net intangibles was $7,706 million. This gives me the creeps ...

world of warcraft is losing ground quickly, diablo 3 won't produce nearly enough recurring revenue to make up for it, the video game business is a tough one

World of Warcraft has about run it's course. there was no major upgrade this year, and players get overstressed trying to keep up with "the Norm"

Good fundamentals and strong products offset by negatives that will keep to the stock treading water with little movement relative to S&P 500. Excellent hedge against turbulence and down-markets. Will under-perform against rising S&P 500 and markets reflecting greater investor risk appetite.

- Increased competition

- Deteriorating product strength in Blizzard franchise. Lower subs and decreased pricing power.

- Stagnant market share growth relative to industry growth.

- New technologies and paradigms forcing re-evaluation of traditional gaming models.

- Loss of "excellence" as a competitive advantage. Increasingly relying on alternative revenue models (e.g. milking) rather than focusing on innovation and satisfying gamers.

- Increased insider selling

- Shifts in management organization.

If management doesn't change, stock will continue to be range-bound (11-14). Simply ride the hype cycles during new releases, and earnings calls and sell at peaks. Buy between these events (under 12).

Increasing competition, Diablo III will not meet expectations, losing WOW subscribers.

This month 5 different directors sold 7,000 shares each; one officer sold 15,427, another 73,068, and a third exercised an option and sold all 240,000 shares on the same day which is 85,000 more shares than he would have needed to sell in order to cover the option. It's not a good sign. On top of that the stock's been flat since May 2009.

Look at past performance.

With old franchises which are slowly dying, and so-so financials, with World Of Warcraft income slowly decreasing, I find the Activision side is becoming irrelevant during the next few years without a serious overhaul. The Blizzard side seems to be keeping the boat afloat, but still suffers from ancient franchises and a user base in a volatile market (gaming) which is slowly beginning to look for alternatives. Therefore, a wait and see approach would be necessary before I'd see this as a buy.

Their top products are already out with only Diablo 3 as their best future potential. WoW has seen some decline especially with competitor SWTor amongst others. Starcraft 2 is stagnating a bit while CoD is rapidly becoming burned out due to lack of innovation in an excessively milked franchise.

underperformer !