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Technology Stocks : Activision....Returns!
ATVI 94.420.0%Oct 13 5:00 PM EST

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To: Burlitis who wrote (1678)4/12/2000 9:28:00 PM
From: Scot  Read Replies (1) of 1992
 
Alex,

Check this out.....Kotick must be reading this thread!! LOL:

mcvnow.com

Nicklaus Misses Cut as Activision Trims Product Line

Following Activision's strategic restructuring, announced Friday, MCV has learned the company will not publish further titles in several franchises, including Battlezone, Interstate, Heavy Gear and Jack Nicklaus golf.

Activision said Friday it will discontinue several product lines as part of a restructuring aimed at boosting its financial position for next-generation console and Internet game development. (Note: The four franchises listed above are PC-based.) The company also said it is increasing its direct distribution efforts worldwide and is merging its Expert Software value-priced software unit into Head Games, which also publishes value titles.

Sales Performance
Looking at the US sales performance of Activision titles between March 1999 and February 2000, it's understandable why the company would choose to cut the four titles listed above.

Each of Activision's top 5 titles in that period generated more than $10 million at retail. The top title, Tony Hawk's Pro Skater for PlayStation, generated vastly more than that figure, according to data from The NPD Group, projected to represent total US retail sales. Nintendo 64 and PS versions of Toy Story, Quake III: Arena for PC, and the N64 version of A Bug's Life round out the top 5.

In contrast, Heavy Gear 2, the leading seller among the cancelled titles, could only manage the No. 30 spot. (See table below.)

Position Title Sales ($ millions) Launch Date
30 Heavy Gear 2 1-1.4 June 99
32 Battlezone 2 <1 November 99
37 Jack Nicklaus 6:Golden Bear Challenge <1 March 99
42 Interstate 82 <1 November 99

The four titles faced difficult challenges: Heavy Gear 2 was up against the might and marketing of MechWarrior 3 and Starsiege: Tribes; Battlezone 2 was the sequel to a critically acclaimed but poor selling game; Jack Nicklaus, despite the strong (and doubtless expensive) license, became lost in a golf market dominated by Tiger Woods and Links and Interstate 82, the sequel to a highly original and well-loved game, received mediocre reviews and little of the consumer ardor of its predecessor. With sales of less than $5 million combined, the titles did little to justify their existence on economic grounds.

Activision acquired rights to publish Jack Nicklaus games from Accolade (now part of Infogrames) in April 1998, in what it termed a long-term agreement, saying the move reinforced its strategy to focus on licensed and franchise properties with strong consumer appeal.

Activision officials declined comment.
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