Modern Warfare 2 and its ability to rake in billions for Activision has come and gone, and it's time to look to what's next. Though, it's alleged that the upcoming DLC content in the spring could pull another $140 for the publisher by year's end. If it's successful. But other than that, analysts' outlook for the franchise that could seemingly do no wrong are down.
Wedbush Morgan Securities analyst Michael Pachter says that while ActBlizz's 2009 earnings were in the $2 billion range, Modern Warfare 2 almost single handily staved off disappointing numbers that would have arose, thanks to "lower than expected sales of DJ Hero, Tony Hawk: Ride, and Band Hero." Thank god for Infinity Ward. However, now that their sequel is out and about, and the studio moving on to bigger and better things, it's projected that the franchise will decline roughly $250 million.
"...We expect the music genre to decline modestly (another $50 – 100 million) and expect Call of Duty to generate sharply lower revenue ... Call of Duty [Modern Warfare 2]’s phenomenal launch poses a difficult comparison, and we expect a year-over-year decline of $250 million for the franchise," Pachter added. That's not taking into account any money that may be earned from that purported MMO, though.
It's no deal though. Pachter notes that ActiBlizz will be more than fine going forward, thanks in part to the ridiculous amount of cash they'll manage from Blizzard's games -- notably World of WarCraft and StarCraft II. "This should drive revenues $400 – 600 million higher, with substantial margin contribution."
And if all else fails... thank god for Treyarch! If World at War proved anything, more than enough revenue can be obtained from Call of Duty, even if it's in World War II again. This November should repeat that.
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