Call of Duty's new feature isn't a Fortnite killer, analyst says
- Activision Blizzard's Call of Duty: Black Ops 4 scheduled to release in October includes a new battle royale mode.
- Oppenheimer doesn't see that taking away from Fortnite, which appeals to a younger, broader audience.
- Instead, the new Call of Duty feature is better positioned to attract hardcore first-person shooter fans.
- Watch Activision Blizzard trade in real-time here.
Activision Blizzard's Call of Duty: Black Ops 4 is scheduled for release on October 12, and will likely be a big hit given the franchise's large following and improvements on weaponry. The much-anticipated game will also have a battle royale mode, recently popularized by Fortnite and PlayerUnknown's Battleground, but it is unlikely to have the same broad appeal as Fortnite.
"We believe the game is not positioned to appeal to wider, younger players like Fortnite is," Oppenheimer analyst Andrew Uerkwitz wrote in a note to clients. "Instead, we believe this game is built to be the best-in-class hardcore [first person shooter]."
Epic Games' Fortnite shot up in popularity within recent months, capturing audiences with its battle royale mode and its "freemium" business model that allows the game to run 100% free on consoles. In March alone, Fortnite raked in $223 million in revenue across all platforms, according to research firm Superdata.
Rather than competing head-to-head with Fortnite for young players, Uerkwitz believes the new feature is better suited to gain market share from games like Counter-Strike: Global Offensive, Siege, PlayerUnknown's Battleground, and Battlefield which are more popular with experienced players. Black Ops 4 will be more attractive to hardcore first-person shooter fans with its "deeper/flexible load-outs and tactical game play."
Activision Blizzard also said the PC version of Black Ops 4 will run on Battle.net, an online gaming, social media, and digital distribution platform. Battle.net currently supports games such as Overwatch, Starcraft: Remastered and Destiny 2. The push should better expand the Call of Duty player base on the PC as that version is positioned to make use of Battle.net's social features and tools, Uerkwitz said.
Activision Blizzard is up 11% this year.
