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

To: Lord Smooth who wrote (1178)	5/26/1998 1:07:00 AM
From: Tom Caruthers	Read Replies (1) \| Respond to of 1992

Schopenhauer, Although I think the word "blockbuster" is definitely in the minds of ATVI execs, I think they are adapting to the needs of the marketplace. ATVI can only grow so big by focusing on a market consisting of only hard-core gamers. I think mgmt realizes that there is money to be made on the casual gamer. We can all see that with the success of games like Deer Hunter, Myst, Riven and the like. Unlike the former group of near fanatical game players, the latter group of casual gamers is much less critical but much more cost conscious and certainly is not willing to fork over $50 for a single game. The price point here for the casual gamer is probably $20-25 and these purchases are more likely than not, a spontaneous event. These are the people who have either seen or heard about the title and figure that if worse comes to worse, then they haven't lost too much. So even if ATVI halves the average selling price, ATVI can probably double to triple the volume. Do not believe that ATVI is scrambling and is in trouble. It is striving for 1) More predictable earnings. 2) A 40-50% increase in revenues. It has done a good job thus far...just not great. It has been late to the console party....they should have been there in force a year ago. That has always been part of the plan. They have a huge slate of new games coming out this year, making the chances of a hit more likely. Good luck. Tom