Activision Blizzard stock soars 15%, Zynga's falls 14% — what does it mean for games?

Two big events caused a flurry of trading in game stocks today. Game publisher Activision Blizzard’s announcement of its $8.2 billion Vivendi buyout drove the company’s stock up 15 percent on Friday, while social-games maker Zynga fell 14 percent after its loss report and its decision to withdraw from making online gambling games for the U.S. market. That may very well mean that shareholders sold Zynga and bought Activision.

This tale of the two stocks says a lot about what is happening in the video game business right now. Activision Blizzard, which has pooled its resources behind three giant game properties (Destiny, Call of Duty, and Skylanders) is enjoying the benefits of being focused on blockbusters. Zynga, meanwhile, is being punished for its lack of focus and is moving fast to double down on what it is good at: social games. Concentrating on successful properties is evidently the way to succeed in this hit-driven part of the entertainment world.