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Analyst expects Activision to close Sierra studios

Signal Hill's Todd Greenwald says closures necessary to improve margins

Following Activision's decision to drop a number of Sierra titles from its portfolio, analyst Signal Hill has suggested that Activision Blizzard will likely close under performing development studios in order to save money.

The publisher has said that Swordfish Studios and Massive Entertainment may be sold, while Radical Entertainment and High Moon Studios will be "realigned" as the company restructures in the wake of its USD 18.9 billion merger.

"We believe Activision has been busy over the past several weeks contemplating which pieces of Vivendi Games to keep, and which to shut down or sell off," said analyst Todd Greenwald.

"While Activision will likely keep the most valuable properties, there will probably be several studios that are no longer needed and can be shut down to improve margins."

Greenwald also suggested that the Sierra Mobile division would make a good opportunity for Glu Mobile to buy.

Activision said yesterday that it would keep five Sierra properties in its portfolio – Prototype, Crash Bandicoot, Spyro the Dragon, Ice Age and one other unnamed project.

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