Only 30 Percent of Activision Profits Come from Console Games
CEO Bobby Kotick reveals just how big of an impact World of Warcraft subscriptions have on Activision's bottom line.
By Dustin Quillen, 06/22/2010
Speaking with The Wall Street Journal, Activision Blizzard CEO Bobby Kotick shared some fascinating info on the breakdown of profit between the various gaming markets. The verdict: Only about 30 percent of the publisher's profit comes from console releases. When questioned by the Journal about slow sales of disc-based games, Kotick replied, "I care a lot less. It used to be, I would religiously look at weekly retail sell-through data, but it's a very small part of our business now."
The Activision executive continued, "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."
Shocking as that figure may seem, it should come as little surprise to the 11.5 million World of Warcraft subscribers out there. Sure, franchises like Call of Duty and Guitar Hero are huge on consoles, but they don't rake in $15 a month from millions upon millions of players.
Mobile phone games and other PC releases also contributed to Kotick's "non-console-based" category, according to Activision Blizzard VP of corporate communications Maryanne Lataif. "Five years ago, DLC and subscription services weren't as popular [as they are today,] and as a result monthly volatility at retail is now less impactful than in the past," she told Gamasutra.
Source: 1up