Report
David Jelly

Activision Blizzard: Destiny 2 Performs Marginally Better Than Original but YouTube Data Raises Red Flag

Key Takeaways

Twitch Metrics Shows Destiny 2 is Performing Better Than the Original
In the days after launch Destiny 2 ranked as the 5th most popular game on Twitch. This compares to the original that ranked as the 6th most popular game over the same time period.

The total share of hours watched on the Twitch platform shows that Destiny 2 did not get off to a great launch compared to Activision’s other successful first-person shooter franchise, Overwatch. Destiny 2 performed marginally better than the original game over the 9 day period.

Net Sentiment for Destiny 2 is Stronger than Original According to Twitter
The game received very positive net sentiment scores in the first week after launch, averaging 2.92 compared to 2.22 for Destiny 1.

YouTube Search Interest for Destiny 2 is Exceptionally Weak Compared to the Original
The levels of interest for the latest installment of the Destiny franchise on YouTube is exceptionally weak given the size of the franchise. This lack of YouTube search interest for the game is a significant red flag.

Potential Implications

Destiny 2 is the first non-Blizzard game to be released on Battle.net, the Blizzard launching platform. As a result, Activision will gain an estimated 20% in margins according to reports. Online metrics from Twitch and Twitter reinforce early reports of a successful launch of Destiny 2. However, weak interest on YouTube is a significant red flag for the franchise that warrants monitoring.

Underlying
Activision Blizzard Inc.

Activision Blizzard is a global developer and publisher of interactive entertainment content and services. The company's segments are: Activision Publishing, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the console platform; Blizzard Entertainment, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the personal computers platform; and King Digital Entertainment, which is a global developer and publisher of interactive entertainment content and services, particularly for the mobile platform, including for Google Inc.'s Android and Apple Inc.'s iOS.

Provider
Eagle Alpha
Eagle Alpha

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Analysts
David Jelly

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