The Edge: Blockbuster Video Game Trumps Blockbuster Box Office Sales

The Trading Edge with Derek Hoffman

Activision’s (Nasdaq: ATVI) Call of Duty Modern Warfare 2 has sold an estimated $550 million in the first five days of its release, crushing industry records.

Referring to sales of the Call of Duty franchise, “It is likely to be one of the most viewed of all entertainment experiences in modern history,” says Robert Kotick, CEO of Activision.

Putting the success of the Call of Duty franchise into perspective, the movie “The Twilight Saga: New Moon” leads at the box office for the second weekend in a row with ten day total ticket sales of $230.7 million. Call of Duty Modern Warfare’s sales have double the movie box office’s best movie sales in half the amount of time.

Even though the Call of Duty franchise success is just one specific example of people choosing video games over movie theaters with their entertainment wallet, there are plenty of other examples (i.e. Rockband, Madden, etc).

With the emergence of the flat screen TV home theater, it seems the American family continues to remain more comfortable than ever at home these days.


Disclosure: No positions in the stocks mentioned.

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