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How Activision Blizzard Could Make Billions -- With Free Games

By Demitri Kalogeropoulos – Feb 20, 2014 at 6:10PM

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The video game publisher is set to release three major new titles on the free-to-play business model this year.

Destiny, the new title that Activision Blizzard (NASDAQ: ATVI) is set to launch in September, retails for $60 and will likely rocket into a billion-dollar video game brand. But the company could actually make as much – or more -- through a major push into the free-to-play gaming model over the coming years.

Activision has already tiptoed into that business, Fool contributor Demitrios Kalogeropoulos notes in the video below. Its new Hearthstone: Heroes of Warcraft title requires no up-front payment to get started, but instead processes small charges from players who want to speed along their progress. 

Hearthstone is a card-collecting game from Blizzard. Source: Activision-Blizzard.

The title seems like a hit already, as Hearthstone has attracted millions of players and strong engagement and spending trends, according to the company. But that's really just the start for Activision: Hearthstone will soon expand to tablets and smartphones, and the company has two additional promising free-to-play entries on the way: Heroes of the Storm and Call of Duty Online.

Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool recommends and 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.

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