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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Mattsworknamemeet ips. stupid phone.05/27/2015 - 11:34pm
MattsworknameI feel ups should have a hard line expiration date. if a company doesn't use them for ten years they have to put it on the market or make it open source05/27/2015 - 11:34pm
MechaCrashPride does play a factor. If you sell an IP to someone, and they make a ton of money off it, it makes you look like a tool: why didn't YOU make that money? Better to sit on it than be embarassed that way.05/27/2015 - 10:58pm
ZippyDSMleeAS far as I understand it the suits think sitting on a an IP till the time is right is more profitable than tradeing it around.....hevean forbit soemone use soemthing to make money with....05/27/2015 - 9:58pm
Andrew EisenOh, there's also the Facebook page.05/27/2015 - 4:29pm
hidannikOkay :( Guess I'll just have to YouTube it when I've caught up on all the other podcasts.05/27/2015 - 4:13pm
Andrew EisenI honestly don't know. The show is on my YouTube channel and we promote it here on the site every week.05/27/2015 - 4:11pm
hidannikIs there nothing a podcast app can key on?\05/27/2015 - 4:09pm
Andrew EisenYeah, we lost Libsyn quite some time ago. As such, no RSS or iTunes. We're working on finding a new (and cost effective) home but it's been really slow going.05/27/2015 - 4:07pm
hidannikThe last one on that feed was Feb 905/27/2015 - 4:05pm
hidannikThe feed is at superpac.libsyn.com05/27/2015 - 4:05pm
hidannikI ask because it hasn't shown up in my PocketCasts feed in a while. (I'm currently a month behind)05/27/2015 - 4:02pm
E. Zachary KnightAE, Loved your mom as the guest on your 30 Days of Netflix series. She is one interesting lady.05/27/2015 - 3:47pm
E. Zachary Knighthidannik, If you mean on iTunes, we are working to get it back up there soon. Otherwise, the show must go on. We record live every Saturday at 8pm Central05/27/2015 - 3:47pm
Andrew Eisenhidannik - The podcast will continue this weekend and every weekend after for the foreseeable future. What makes you ask?05/27/2015 - 3:29pm
Matthew WilsonI say no it isnt, but it depends on the reason for not selling it. were the pressured to not sell it. aka target au, or did they chose not to on their own aka gog with hatred.05/27/2015 - 3:28pm
hidannikIs there no more podcast?05/27/2015 - 3:26pm
E. Zachary KnightHere is another thought exercise. How would you feel if game developers traded in IP? http://gamasutra.com/blogs/JorgeMunoz/20150520/243471/Why_dont_developers_buysell_intellectual_property_much_like_other_assets.php05/27/2015 - 3:24pm
Andrew EisenSlightly Mad Studio comments on Wii U version of Project Cars: http://www.nintendolife.com/news/2015/05/exclusive_slightly_mad_studio_head_ian_bell_sets_the_record_straight_on_project_cars_wii_u05/27/2015 - 11:54am
E. Zachary KnightGamasutra has a really interesting interview with the Hatred developers. http://gamasutra.com/blogs/AlbertPalka/20150526/244229/Real_talk_with_Destructive_Creations_Hatred_interview.php05/27/2015 - 10:11am
 

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