Activision Blizzard Stock Jumps As Fortnite Competition Less Than Expected

The growing popularity of Fortnite from Epic Games is not hurting the gaming business of Activision Blizzard as significantly as feared. The game publisher posted first quarter, better than expected earnings this week and slightly increased its guidance for the rest of fiscal 2018. It stock reacted by increasing 4.5% on the day Friday.

In September, Epic Games introduced battle royale mode that was free-to-play for Fortnite on gaming consoles and computers. The mode allows as many as 100 players online to battle one another to death until just one player remains.

The company revealed that the game was played by over 45 million across the globe. It addition, it is consistently the most streamed action game that is on Twitch.

On Thursday, management at Activision admitted during the earnings call that Fortnite has affected and continues to affect the financials, but said that overall business continues to be strong.

Activision’s CFO Spencer Neumann said that the company has seen a certain amount of impact in the near term from the battle royale, but the business continues to perform at all-time record levels.

He added that Activision Blizzard has some of the most diverse and broadest portfolios of successful games across all genres, platforms and business models.

The CEO of the company then alluded to Activision possibility doing something similar in the future.

CEO Bobby Kotick said that with the long history the company has and when you see others innovate in an impactful and interesting way, you quickly are able to determine how to capture the inspiration from being innovative.

Therefore, he continued, as a company in our culture and in our DNA we see things that would be appealing to audiences and we are very successful at being inspired by that.

Because of that, an analyst on Wall Street has turned optimistic over the title pipeline for Activision the remainder of the year.

Another analyst pointed out that the impact on Activision by Fortnite would be very limited. He believes that the activity on Fortnite will reach a peak during the year and EA and ATVI can begin winning users back with new original content this fall.