Why Activision Just Shook Up Its "Call of Duty" Franchise

Three might be the magic number for this blockbuster brand.

Feb 12, 2014 at 7:30PM

Big changes are on the way for one of the video game industry's largest franchises. Activision Blizzard (NASDAQ: ATVI) recently announced that it is expanding its development cycle for the Call of Duty brand from a two-year to a three-year schedule.

Ghosts

Call of Duty: Ghosts was the top-selling title in North America last year. Image source: Activision Blizzard.

In the video below, Fool contributor Demitrios Kalogeropoulos explains why Activision is making this move, noting that the main benefit should be a higher-quality product. The switch will also lower the risk of a buggy launch of the type that both Electronic Arts (NASDAQ:EA) and Take-Two Interactive (NASDAQ:TTWO) saw last year with Battlefield 4 and GTA V, respectively. Finally, Activision should see higher digital revenue now that its studios can spend serious time developing downloadable content after their releases, leading to a longer life for future Call of Duty titles.

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Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool recommends Activision Blizzard and Take-Two Interactive. The Motley Fool owns shares of Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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