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Technology Stocks : Activision....Returns! -- Ignore unavailable to you. Want to Upgrade?

To: Burlitis who wrote (845)	1/24/1998 9:52:00 PM
From: Tom Caruthers	Read Replies (1) \| Respond to of 1992

Alex, I noticed that the average selling price is declining too, which is going to make it even more important for these games companies to operate as efficiently as possible. But you are so right about games becoming more affordable to the masses. Things are taking off in this industry: online gaming, 3D graphics getting cheaper all the time, sub $1000 computers, etc. These forces will drive growth in the gaming industry in general. To downgrade interactive gaming companies now is of course case-specific but certainly unwise. If I were an analyst, I would still rate ATVI a strong buy. This company knows what it needs to do and has a track record of getting it accomplished. I hope to see some reiteration of strong buys for ATVI, despite the last two downgrades. Simple reasoning states that the holiday season has ended so where are the gaming companies going to get more money? That is seriously short-sighted. I'd like to see one of the analysts list pros and cons for the industry and then downgrade these stocks. You just can't find any reason to downgrade. Sure, valuation has been used as an excuse before but really...ERTS and ATVI just got a whole lot cheaper and the growth rate is torrid. ATVI has a strong pipeline in addition to continued strength of Quake II sales. Q II sales/shipments cannot alone explain the huge increase in ATVI's revenues. Part of the increase can be attributed to the distribution biz (probably also part to blame for the lowered margins) but the majority came from game shipments. ATVI's prospects look bright either as a stand-alone company or as one folded into another. Take care, Tom C.