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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ConsterSleaker: if you think there's only been "a handful of" incidents, you have your head stuck *somewhere* - I'm assuming it's sand.09/20/2014 - 5:38am
prh99Most of it's agitprop clickbait anyway.09/20/2014 - 5:27am
prh99A good reason to stop reading reguardless of view pointhttp://www.theguardian.com/media/2013/apr/12/news-is-bad-rolf-dobelli.09/20/2014 - 5:22am
Andrew EisenWell this is unique! A musical critique of the Factual Feminist's "Are Video Games Sexist?" video. https://www.youtube.com/watch?v=-K4s7cV4Us409/20/2014 - 2:41am
Andrew EisenSome locked threads. Some let them be. So, no, I'm not seeing a problem here. No corruption. No collusion. No ethical problem with privately discussing ethics.09/20/2014 - 12:48am
Andrew EisenAnd still, in the end, Tito made up his own mind on how to handle his site. All 150 or so members went off to handle their own sites in their own ways. Some talked about it. Some didn't. Some changed disclosure policies. Some didn't.09/20/2014 - 12:40am
Andrew EisenThere were two comments other than Kochera and Tito's. One pointed out the Escapist Code of Conduct, another comment was in support of Tito.09/20/2014 - 12:40am
Andrew EisenKochera privately expressed his disagreement on how Tito decided to do something. No, I don't consider that crossing a line nor do I consider the exchange an example of the group pressuring him.09/20/2014 - 12:36am
Kronotechnical reasons. Anyways, I need to get to sleep as well.09/20/2014 - 12:29am
KronoAnd he wasn't the only one pushing Tito to censor the thread. If Tito had bowed to peer pressure, we likely wouldn't have gotten this http://goo.gl/vKiYtR which grew out of that thread. Said thread also lasted until a new one needed to be made for09/20/2014 - 12:28am
Krono@Andrew So it's an example of Kuchera crossing the line from reporter to advocate. And an example of the group pressuring for censorship.09/20/2014 - 12:21am
E. Zachary KnightAnyway, I am off to bed. I will probably wake up to all of this being knocked off the shout box.09/20/2014 - 12:20am
E. Zachary KnightKrono, that is the type of reading too much into things that bugs me. Ben did no such thing. Greg had the last word in that part of the exchange. The rest was about how to approach the story and Quinn.09/20/2014 - 12:19am
Andrew EisenSo?09/20/2014 - 12:13am
KronoExcept that the forum thread wasn't harassment, and Kuchera continued to push for the thread's removal after Tito made it clear he didn't consider it harassment.09/20/2014 - 12:12am
Andrew EisenPersonally, I see nothing wrong with someone offering their opinion or the other person making up their own mind on how to run their site.09/20/2014 - 12:06am
E. Zachary KnightKrono, I read nothing of the sort in that email chain. I read Ben giving advice on what to do when a forum thread is used to harass someone and spread falshoods about them and others.09/20/2014 - 12:05am
KronoThat's exactly what Ben Kuchera was doing to Greg Tito.09/19/2014 - 11:58pm
Krono@EZK So you see nothing wrong with one journalist pressuring a journalist from a different organization to not only not run a story, but to censor a civil discussion already taking place?09/19/2014 - 11:56pm
E. Zachary KnightI write for a number of blogs and talk to people who write similar blogs all the time for tips and advice. I see nothing wrong with that.09/19/2014 - 11:50pm
 

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