Shares in game publishing companies have fallen over the last two days, as analysts have started to downgrade a number of companies in the sector.
Today, Robert DeLean, an analyst at Morgan Keegan, lowered the boom on Activision. He downgraded the stock to "market perform" from "outperform", saying that he believes that Activision's reliance on Tony Hawk leaves the company vulnerable to revenue fluctuations. DeLean says that about 28% of Activision's revenue will be generated from that franchise. In DeLean's research note to clients, he stated that "ATVI's other brands are not getting the same traction [as Tony Hawk] this holiday season, which makes us weary of a potential revenue shortfall." This was the second hit for game companies this week from financial analysts. On Monday, Michael Wallace of UBS Warburg downgraded Activision, Midway, THQ and Acclaim.
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