Activision Blizzard, Inc. ATVI rolled out its new "Call of Duty: Modern Warfare" battle pass, along with other new Season One content, a move KeyBanc says makes sense given that the battle pass is becoming the standard gamers are used to.
Why The Battle Pass?
The battle pass model is becoming the industry standard, shifting away from the paid downloadable content model, KeyBanc analyst Tyler Parker wrote in a note.
Under the new "Call of Duty" battle pass, gamers can spend $10 for certain new content that gamers can unlock. The pass replaces the game's "loot boxes," which weren't popular with gamers.
"The battle pass is a more user-friendly version of monetizing the player base and a shift in the right direction," Parker wrote.
The new system increases engagement, he said, but also provides more opportunities for players to spend more money in the in-game store.
"Assuming the unlockable content remains attractive, we believe the battle pass presents an opportunity to retain users with stable investment over the next year," Parker said.
KeyBanc has an Overweight rating on Activision Blizzard with a $60 price target.
On Wednesday, the stock was trading up 1.02% at $56.51.
Related Links
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