Activision shares, which are down about 10 percent this year and are currently trading at about $11.25, could rise as much as 50 percent due to new products and improved cost-cutting, with one analyst at BMO Capital Markets predicting the stock to hit $17, Barron's said.

Activision, which is debt-free and repurchased shares in the first half of 2012, recently formed a partnership with Tencent Holdings, China's largest Internet provider, to make its popular "Call of Duty" game available online.

Like its competitors, the Santa Monica-based company's share price has fallen due to a slowdown in demand for packaged videogames used with traditional game consoles, challenged by the growing popularity of cheaper products played on smartphones and tablets, Barron's reported.

(Reporting By Katya Wachtel: Editing by Maureen Bavdek)

• A Permanent Economic Emergency