Activision's Revenues Mostly Based Upon Three Properties

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Inside the same SEC filing that included information about an investigation into "breaches of contract and insubordination by two senior employees at Infinity Ward", Kotaku noticed an interesting bit of information about Activision Blizzard's 2009 profits.

A significant portion of our revenues has historically been derived from products based on a relatively small number of popular franchises and these products are responsible for a disproportionately high percentage of our profits. For example, our top three franchises, Call of Duty, Guitar Hero, and World of Warcraft, accounted for approximately 68% of our net revenues for the year ended December 31, 2009.

That is a large amount to be spread across so few properties. In fact, Activision just made some major cuts, some of which hit studios involved in the Guitar Hero franchise.

Activision, of course, recognizes the risk involved here stating, "due to this dependence on a limited number of franchises, the failure to achieve anticipated results by one or more products based on these franchises may significantly harm our business."

Interestingly, but not surprisingly, World of Warcraft has accounted for 98% of Blizzard's net revenue in 2009 and 97% in 2008 and 2007. This should change with StarCraft II: Wings of Liberty on track for a mid-year 2010 release.

From The Chatty
  • reply
    March 2, 2010 3:35 PM

    So if they recognize the risk of betting the farm on a small number of franchises, what are they going to do about it? Treat their moneymaking franchises with more care and respect? Nurture some new ones? Is either likely? I'm not sure what the path back to the light is for this organization...

    • reply
      March 2, 2010 3:43 PM

      got milk?

    • reply
      March 2, 2010 3:48 PM

      Clearly the response is to rename the company to Call of Guitar Herocraft Inc. and fire everyone not directly related to those three properties

      • reply
        March 2, 2010 3:53 PM

        Only one man's insane vision can save this company... John Romero...DAIKATANA 2!

        • reply
          March 2, 2010 4:00 PM

          This time he will make you his bitch.... for real

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