There is a saying in the technology sector that goes "Don't be evil." Microsoft
(MSFT:
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attempted to adopt the saying as a motto of sorts for a while. This idiom holds especially true in the video-game market, where consumers can make or break a company's reputation in the blink of a blog posting.
On this front, Activision Blizzard
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is bordering on crossing the line with its latest marketing pack with Microsoft's Massive Inc. Earlier today, ATVI announced that it has signed an 18-title marketing alliance for Xbox 360 and PC games including "Guitar Hero: World Tour" and "James Bond: Quantum of Solace." Separately, Massive Inc. and Blizzard Entertainment agreed on a multi-year advertising relationship that covers the Battle.net online game service.
The deal should be beneficial for both, as MSFT's Xbox 360 is performing considerably well in the current generation of console wars, while ATVI is among the premier video-game makers this year. What's more, ATVI shares could certainly use the help. The security has dropped 38% since mid-September, and is struggling to find support in the 10-10.50 region while battling overhead resistance at its falling 10-week moving average. MSFT, meanwhile, is trading just shy of multi-year lows as it fights with potential round-number resistance at the 20 level.
Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com