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Fly News Breaks for January 16, 2020
ATVI, EA, TTWO, NTDOY
Jan 16, 2020 | 19:11 EDT
Piper Sandler analyst Michael Olson maintained Overweight ratings on Activision Blizzard (ATVI), Electronic Arts (EA), and Take-Two (TTWO) following NPD's video game sales data for the full December quarter. According to NPD's data, video games sales fell 21% year-over-year for the full quarter, with "Call of Duty: Modern Warfare" as the top selling game. EA's "Star Wars Jedi: Fallen Order" was in second place, followed by Nintendo's (NTDOY) "Pokemon Sword" and "Luigi's Mansion 3," with EA's latest "Madden" rounding out the top five. Olson said he believes December quarter NPD results are "most positive" for EA, given the "strong" sales for "Star Wars" and "Madden." For Activision, NPD data is tracking more negative than the analyst's estimate, though he believes this is largely due to Activision titles skewing more digital, and therefore not captured in NPD. Meanwhile, Olson added that Take-Two's NPD results are ahead of his expectations, but he also looks for digital revenue to be a more prominent component of the company's December quarter results.