2018-09-18 12:31:30 | Game On: Piper says 'Fortnite' Twitch viewership fell 13% in AugustWelcome to "Game On," The Fly's weekly recap of the stories powering up or beating down video game stocks. NEW RELEASES: Among this week's new software releases is Nintendo's (NTDOY) "Xenoblade Chronicles 2: Torna -- The Golden Country," an expansion to last year's role-playing game "Xenoblade Chronicles 2," exclusively on the Nintendo Switch. The game was released on September 14 as an expansion pack and will be released at retail on September 21. In addition, Capcom's (CCOEY) "Capcom Beat 'Em Up Bundle" launches for Switch, Xbox One (MSFT), and PlayStation 4 (SNE) today. The game is a collection of classic Capcom-made games from the 1990s. 'FORTNITE' VIEWERSHIP DECLINE: In a research note investors, Piper Jaffray analyst Michael Olson said that his firm's monthly "TwitchAdviser," an analysis of viewership data on video game streaming platform Twitch (AMZN), indicates a decline in viewership for Epic Games' "Fortnite" for the month of August. "Fortnite" viewership declined 13% percent in August, the steepest month-on-month decline Piper has seen, while cumulative viewership of Activision Blizzard (ATVI) titles increased 48% month-on-month, driven by "World of Warcraft" and "Destiny 2." Olson said that he believes tracking Twitch viewership can provide insight into the real-time "pulse" of certain video games, identifying those that have momentum and those that are losing traction with gamers. Epic Games, the creator of "Fortnite," is 40% owned by Tencent (TCEHY) and is part of Disney's (DIS) Accelerator Program. 'BLACK OPS 4' BETA: Analysts have reacted positively to the latest beta for Activision's upcoming shooter "Call of Duty: Black Ops 4." Goldman Sachs analyst Christopher Merwin last week maintained his Buy rating and $84 price target on the stock, saying the the game's beta version for PS4 with its new "battle royale" mode, known as "Blackout," has been "impressive." Merwin also noted that the 95% positive fan reaction to the "Blackout" trailer on YouTube also bodes positively for engagement. In addition, Morgan Stanley analyst Brian Nowak said in a note this week that since Activision began beta testing the "Blackout" mode, reviews have been notably positive. Nowak added that the strong initial reception increases the chances that "Blackout" may be able to directly compete with "PUBG" and "Fortnite" in the popular battle royal genre. The analyst, who backed an Overweight rating and $80 price target on Activision Blizzard, thinks his $100 bull case for Activision shares is "in play" as continued enthusiasm for "Blackout" could drive higher "COD" unit sales and lead to higher in-game monetization in 2019. NINTENDO DIRECT: Last Thursday, Nintendo unveiled in its Nintendo Direct video presentation that new entries in the "Animal Crossing" and "Luigi's Mansion" series will be coming to exclusively to the Switch in 2019. The company also noted in the presentation that a number of popular third party titles will be coming to the Switch soon as well, including a large collection of classic "Final Fantasy" games, an HD remake of "Katamari Damacy," and 2K's (TTWO) "Sid Meier's Civilization VI." LOOT BOX CRACKDOWN: Business Insider reported yesterday that regulators from more than a dozen European countries are seeking to crack down on "loot boxes," a controversial video game practice that could be too much like gambling. Companies that may be impacted include EA (EA), Take-Two, and Activision Blizzard. | |
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