Analyst Defends Activision's Bizarre Move

Following the ringing cries of shock around the games industry at Activision's purchase of Bizarre Creations yesterday, Goldman Sachs analyst Mark Wienkes has stepped up to say why the move makes so much sense.

As far as Wienkes is concerned, it's all about the racing. According to Wienkes, "this acquisition makes sense strategically as it allows Activision to enter the $1.4 billion racing genre via a proven developer with a history of producing top titles." True enough, and Project Gotham series has sold well, having shifted 4.5 million units in Europe and North America since it began life in 2002.

Wienkes expands, saying, "We believe racing titles are ideal to help expand Activision's exposure to ancillary revenue streams presented with online connectivity... Activision is well-positioned to prosper as online connectivity of the new consoles accelerates growth in new revenue opportunities such as in-game advertising, digital distribution, and micro-transactions." He's right! Having online racing games is a good way to make money! But aren't we rather focusing on Project Gotham here?

"This acquisition is consistent with Activision's stated strategy...in acquiring studios with a prove n franchise history and average critical reviewer ratings exceeding 85/100," added Wienkes. Damn! He's right! Purchasing a good a development studio will mean getting better games than Activision would have got from purchasing a bad one. We love analysts.

Of course, Activision buying Bizarre makes perfect sense from the publisher's point of view. What's strange is Microsoft that, which does extremely well out of having the PGR series as a 360 exclusive, has allowed Bizarre to slip through its fingers - therefore risking the Activision making the franchise multi-platform.

Project Gotham Racing 4, incidentally, is due out on October 12th.

^{Source: GameSpot}