Activision: 70 Percent of Income Comes From Non-Console Games

June 22, 2010 -

Speaking to the Wall Street Journal, Activision CEO Bobby Kotick said that he is confident that the company's online strategy will help it to weather the storm as sales models shift from disc-based to digital. He also added that 70 percent of the company's operating profit comes from "non-console based video games."

For a better understanding of what that means, a quote:

"Today, probably 70 percent of our operating profit comes from non-console-based video games. So, while you might see a month-to-month change or volatility against expectations, that doesn't really get us too concerned." Operating income for Activision's January-March 2010 quarter alone was $511 million.

While one might want to tie that number to DLC sales from games like Call of Duty Modern Warfare 2, but a spokesperson for the company told Gamasutra that Kotick's statement doesn't include console based content of any kind. Maryanne Lataif, VP of corporate communications for Activision Blizzard, told Gamasutra in a phone call that "non-console-based video games" means just that.

So, as you have probably already guess 70 percent of Activision's operating profits comes from World of Warcraft.

There are other "non-console-based" Activision games that might be counted in this category like iPhone titles and PC games, but those pale in comparison to the juggernaut that is World of Warcraft. Lataif added that merely five years ago DLC and subscription-based services weren’t as popular as they are today, and that monthly volatility at retail is now less impactful than in the past."

Kotick is keen to bring some of the company's biggest franchises online and repeat the wild success of World of WarCraft. If he has his way we may eventually see the company's second biggest franchise, Call of Duty, coming to a computer near you - for a monthly fee. But in the interim the company is preparing for Blizzard's next big game, StarCraft II, complete with a revamped Battle.net. That will surely add to the company's "non-console game" profit.

Source: Gamasutra


Comments

Re: Activision: 70 Percent of Income Comes From Non-Console ...

Well jeez, maybe they had beter stop proclaiming the death of PC gaming and embrace pc gamers instead of treating them all like criminals with overbearing DRM schemes that do nothing but punish their prescious 70%.

But I'm not bitter, no sir!

 
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Matthew Wilsonyes it help a sub section of the poor, but hurt both the middle and upper class. in the end way more people were hurt than helped. also, it hurt most poor people as well.04/16/2014 - 12:13am
SeanBJust goes to show what I have said for years. Your ability to have sex does not qualify you for parenthood.04/15/2014 - 9:21pm
NeenekoSo "worked" vs "failed" really comes down to who you think is more important and deserving04/15/2014 - 7:04pm
NeenekoThough I am also not sure we can say NYC failed. Rent control helped the people it was intended for and is considered a failure by the people it was designed to protect them from.04/15/2014 - 7:04pm
NeenekoIf they change the rules, demand will plummet. Though yeah, rent control probably would not help much in the SF case. I doubt anything will.04/15/2014 - 1:35pm
TheSmokeyOnline gamer accused of murdering son to keep playing - http://cnews.canoe.ca/CNEWS/Crime/2014/04/15/21604921.html04/15/2014 - 11:50am
Matthew Wilsonyup, but curent city rules do not allow for that.04/15/2014 - 11:00am
ZippyDSMleeIf SF dose not start building upwards then they will price people out of the aera.04/15/2014 - 10:59am
Matthew Wilsonthe issue rent control has it reduces supply, and in SF case they already has a supply problem. rent control ofen puts rent below cost, or below profit of selling it. rent control would not fix this issue.04/15/2014 - 10:56am
NeenekoRent control is useful in moderation, NYC took it way to far and tends to be held up as an example of them not working, but in most cases they are more subtle and positive.04/15/2014 - 10:24am
PHX CorpBeating Cancer with Video Games http://mashable.com/2014/04/14/steven-gonzalez-survivor-games/04/15/2014 - 9:21am
Matthew Wilsonwhat are you saying SF should do rent control, that has never worked every time it has been tried. the issue here is a self inflicted supply problem imposed by stupid laws.04/15/2014 - 8:52am
E. Zachary KnightNeeneko, Government created price controls don't work though. They may keep prices down for the current inhabitants, but they are the primary cause of recently vacated residences having astronomical costs. Look at New York City as a prime example.04/15/2014 - 8:50am
NeenekoI think free markets are important, but believe in balance. Too much of any force and things get unstable.04/15/2014 - 7:25am
NeenekoWell, the traditional way of keeping prices down is what they are doing, controls on lease termination and tax code, but it will not be enough in this case.04/15/2014 - 7:24am
Matthew WilsonI said that already04/14/2014 - 4:22pm
E. Zachary KnightMatthew, The could also lower prices by increasing supply. Allow high rise apartment buildings to be built to fulfill demand and prices will drop.04/14/2014 - 3:48pm
Matthew Wilsonthe only way they could keep the price's down, would be to kick out google, apple, amazon, and other tech companies, but that would do a ton of economic damage to SF, but I am a major proponent of free markets04/14/2014 - 2:54pm
NeenekoThe community people are seeking gets destroyed in the process, and the new people are not able to build on themselves. Generally these situations result in local cultural death in a decade or so, and no one wins.04/14/2014 - 2:09pm
NeenekoWell yes, that is the 'free market', but the market is only a small piece of a much larger system. The market does not always do the constructive thing.04/14/2014 - 2:06pm
 

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