Activision-Blizzard is the "Best Way to Play" the Video Game Sector, Deutsche Bank Reports

“Given our expectations of declining packaged goods software sales through 2011, we recommend Activision-Blizzard ATVI as the best way to play the sector, since over 50% of its profits come from Blizzard,” Deutsche Bank reports. “Furthermore, the co. looks to be the best positioned with fewer titles to manage in a digital transition (the issue being limited social/mobile/casual presence),” Deutsche Bank writes. “Meanwhile, we think EA ERTS has significant share price downside as the co. struggles to scale profits due to too many titles, high expense structure, and valuation.” Activision-Blizzard closed Monday at $11.46; Electronic Arts closed at $22.79.