Goldman Sachs Comments on Call of Duty Elite

Goldman Sachs is providing a few comments on Activision's ATVI newly announced Call of Duty Elite service. “The service will be priced ‘less than' any comparable online entertainment service currently in the market, which implies lower than the $8 / month Netflix charges,” Goldman Sachs writes. “It implies a $0.40 annual cost per hour of entertainment ($60 game + $96 service, 1 hr per day), a reasonable value compared to typical cable TV subscriptions at about $0.65 per hour ($70/month, 3.5 hrs/day). “Annual membership is likely to include map pack releases, which typically retail for $15. Tournaments, play tracking, and enhanced play matching are also included. What will be free vs. paid is unclear. In some ways Elite mirrors the free Halo Bungie.net platform, though we suspect prize-based tournaments will be a foundation of the paid service.” Activision closed Tuesday at $11.99.