Too bad SI isn't free then all of you guys from Yahoo and the Motley Fool forum could chat here. IMO, SI has more features and is more user friendly than the others.
Anyhow, ATVI signed a multi-game deal with Disney, including three based on the upcoming Toy Story II. There is no question in my mind that this movie will be a hit. A Bug's Life later this year may be interesting (the pre-release hype is extremely positive), but won't have the mindshare and popularity of Toy Story II. A real coup. And given the quality of production on Muppet Treasure Island, there is no question that the game will be top notch.
biz.yahoo.com
So people. Where do we go from here? It was a little disturbing that even with the huge increases in revenue, the cost structure is still too high, and gross margins are still too low to make a decent profit.
However, we have not yet seen the fruits of ATVI's labor. The company has made incredible strides, IMO, in building this company up. It has a huge slate of games coming out in the second half. Pay now, reap rewards later. The next thing ATVI needs is a presence in console sports. Perhaps an AKLM/ATVI combo as someone had suggested? Interesting. If ATVI can achieve a large sports presence, I think that ATVI and ERTS will be playing on the same field.
Boost those margins boys!
My guess for the stock...take a breather here...and then onwards again.
Good luck all and post here every now and then! SI does, after all, have a free trial membership going on!
Tom C. |
