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

By Demitri Kalogeropoulos – Feb 12, 2014 at 7:30PM

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Three might be the magic number for this blockbuster brand.

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.

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 (EA 0.50%) and Take-Two Interactive (TTWO 2.22%) 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.

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. 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.

Stocks Mentioned

Electronic Arts Stock Quote
Electronic Arts
EA
$132.28 (0.50%) $0.66
Take-Two Interactive Software Stock Quote
Take-Two Interactive Software
TTWO
$108.76 (2.22%) $2.36

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