Activision's World of Hurt


It's hard to compete against "free."

Free-to-play and casual games finally took a big bite out of Activision Blizzard's tent pole franchise, World of Warcraft. The subscription-based game lost 1.3 million members last quarter, or 14% of its total user base.

In the following video, Fool contributor Demitrios Kalogeropoulos says there's a sliver lining to this bad news, and that Activision has some levers it can pull to keep Warcraft afloat. Still, the best-case scenario is for a more steady decline for this aging game that will give the company time to build up its newer franchises.

While Activision and Microsoft have been taking the headlines when it comes to console gaming, investors following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. The Motley Fool's special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.

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Fool contributor Demitrios Kalogeropoulos owns shares of Activision Blizzard. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and owns shares of Activision Blizzard and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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