On the flip side, Ritholtz Wealth Management's Josh Brown notes that while competition has increased, there are also new ways for video game creators to make money.
"There are new monetization methods that did not exist in the old duopoly … If you bought a first-generation playstation game, that was the end of money that Sony saw. Now, selling the game is just getting you hooked, and they're selling you clothing for your character. And these are brand new revenue streams that never existed for the industry. So yes, more competition, way more monetization opportunities," he said.
Activision has lost nearly half its value in the span of just 4 months. Shares have fallen 49 percent since reaching a 52-week intraday high of $84.68 on October 1. Electronic Arts is 47 percent from its recent high in July.
- Jon Najarian owns Activision Blizzard calls.