Activision Blizzard (ATVI) Investors on Alert as Violent Video Games Being Partly Blamed for Connecticut Shooting
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Price: $94.42 --0%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 1.1%
Revenue Growth %: -100.0%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 1.1%
Revenue Growth %: -100.0%
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Shareholders of Call of Duty video game maker Activision Blizzard, Inc. (NASDAQ: ATVI) and other video game makers are nervous Monday related to fears about a potential backlash from Friday's horrible Sandy Hook school shootings, which left 26 dead, including 20 children.
There have been reports from the Hartford Courant that alleged gunman Adam Lanza played "violent video game in which life-like characters engage in graphic battle scenes."
This has investors worried that not only will there be backlash against gun makers, including Smith & Wesson Holding (Nasdaq: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR), but video game makers like Activision Blizzard could be the target of the outrage.
Activision Blizzard makes the wildly popular Call of Duty, which makes up a substantially portion of its revenues.
The company is not immune to legal claims of this kind and list it as a risk factor for investors (see below for risk factor)
In prior years, at least two lawsuits have been filed against numerous video game companies, including against Activision, by the families of victims who were shot and killed by teenage gunmen in attacks perpetrated at schools. These lawsuits alleged that the video game companies manufactured and/or supplied these teenagers with violent video games, teaching them how to use a gun and causing them to act out in a violent manner. These lawsuits have been dismissed. Similar additional lawsuits may be filed in the future. Although our general liability insurance carrier has agreed to defend lawsuits of this nature with respect to the prior lawsuits, it is uncertain whether insurance carriers would do so in the future, or if such insurance carriers would cover all or any amounts for which we might be liable if such future lawsuits are not decided in our favor. If such future lawsuits are filed and ultimately decided against us and the relevant insurance carrier does not cover the amounts for which we may be liable, it could have an adverse effect on our business and financial results. Payment of significant claims by insurance carriers may make insurance coverage materially more expensive or unavailable in the future, thereby exposing us to additional risk.
There has been a debate erupting online about if video games like Call of Duty should be banned. This debate has really just started and will likely grow in the coming days.
Shares of Activision Blizzard are down 2.45 percent Monday to $11.13
There have been reports from the Hartford Courant that alleged gunman Adam Lanza played "violent video game in which life-like characters engage in graphic battle scenes."
This has investors worried that not only will there be backlash against gun makers, including Smith & Wesson Holding (Nasdaq: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR), but video game makers like Activision Blizzard could be the target of the outrage.
Activision Blizzard makes the wildly popular Call of Duty, which makes up a substantially portion of its revenues.
The company is not immune to legal claims of this kind and list it as a risk factor for investors (see below for risk factor)
In prior years, at least two lawsuits have been filed against numerous video game companies, including against Activision, by the families of victims who were shot and killed by teenage gunmen in attacks perpetrated at schools. These lawsuits alleged that the video game companies manufactured and/or supplied these teenagers with violent video games, teaching them how to use a gun and causing them to act out in a violent manner. These lawsuits have been dismissed. Similar additional lawsuits may be filed in the future. Although our general liability insurance carrier has agreed to defend lawsuits of this nature with respect to the prior lawsuits, it is uncertain whether insurance carriers would do so in the future, or if such insurance carriers would cover all or any amounts for which we might be liable if such future lawsuits are not decided in our favor. If such future lawsuits are filed and ultimately decided against us and the relevant insurance carrier does not cover the amounts for which we may be liable, it could have an adverse effect on our business and financial results. Payment of significant claims by insurance carriers may make insurance coverage materially more expensive or unavailable in the future, thereby exposing us to additional risk.
There has been a debate erupting online about if video games like Call of Duty should be banned. This debate has really just started and will likely grow in the coming days.
Shares of Activision Blizzard are down 2.45 percent Monday to $11.13
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