Analyst Doug Creutz from Cowen Group has good and bad news for Activision Blizzard.
The good news: Creutz thinks investors don’t need to worry about the music genre anymore.
The bad news: the analyst says the once high-flying music genre is now “immaterial to overall results”.
His comments were noted by Gamasutra as Cowen Group more than halved its original forecast for US DJ Hero sales in Q4.
The company now thinks DJ Hero and new review darling DJ Hero 2 will “struggle” to break the 1 million sales mark, combined – the original estimate was 2.5 million.
Creutz has a solution for Activision Blizzard: double down.
“Activision’s best option at this point would be to approach Viacom with [the] idea of (re)merging the Guitar Hero and Rock Band franchises through a sale or joint venture agreement,” he wrote.