Welcome to "Game On," The Fly's weekly recap of the stories powering up or beating down video game stocks.
NEW RELEASES: Out this week is Bethesda's "Fallout 76," which rolls out November 14 on PC, PlayStation 4 (SNE), and Xbox One (MSFT). Also out is Warner Bros. Interactive's (T) "Hitman 2," which launches today for PC, PS4, and Xbox One. In addition, Nintendo (NTDOY) is releasing "Pokemon Let's Go!" exclusively for Switch consoles on November 16, while Activision's (ATVI) "Spyro Reignited Trilogy" rolls out for PS4 and Xbox One today.
TAKE-TWO RESULTS: Take-Two (TTWO) reported second quarter results last Wednesday, with net bookings for the quarter beating consensus estimates. The company also provided a third quarter outlook and raised its fiscal 2019 guidance for earnings per share and net bookings. CEO Strauss Zelnick attributed the "better-than-expected operating results" to "Grand Theft Auto V" and "GTA Online," as well as the successful launch of "NBA 2K19." In addition, Zelnick said that "Red Dead Redemption 2" sold more units in its first eight days of release than the first "Red Dead Redemption" sold in eight years.
ACTIVISION RESULTS: Meanwhile, Activision Blizzard reported lower than expected Q3 adjusted earnings per share last Thursday and provided weaker-than-expected guidance for the fourth quarter. Of note, the company said that it had 345M monthly active users in the quarter, a decrease from the 352M MAUs reported in the prior quarter. On its quarterly conference call, Activision said that MAUs rose "significantly" in October following the launch of "Call of Duty: Black Ops 4."
MICROSOFT ACQUISITIONS: At its X018 event in Mexico City over the weekend, Microsoft announced that it was acquiring two more video game developers, namely Obsidian Entertainment, the company behind "Fallout: New Vegas" and "Pillars of Eternity," and inXile Entertainment, the developer behind "Wasteland 2" and "Torment: Tides of Numenera." The announcements came after Microsoft said earlier this year that it had acquired four other game studios, including Ninja Theory, Playground Games, Undead Labs, and Compulsion Games.
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