30% of Activision Profits Come from Console Games

[Ares]

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

 

[Ares]

I usually like to let you guys comment first on these articles that I post but this guy just P***** me off, he talks like the profits from console base games are irrelevant to him and yet he's trying to find new ways to nickle and dime us, like he said earlier given the chance COD would be subscription based.

 

[Nugu]

Just think about when WoW becomes so stale no one plays it anymore. He'll be praising that "30%". Maybe he's never heard that diversification is a *good* thing?


Personally I got tired of the WoW cycle.
New content -> 2 months, content finished -> 4-6 months of nothing to do * repeat

Now if only the spam/keylog bots would stop sending me "account information confirmation required!" 5 times a day.

 

[Shock]

I usually like to let you guys comment first on these articles that I post but this guy just P***** me off, he talks like the profits from console base games are irrelevant to him and yet he's trying to find new ways to nickle and dime us, like he said earlier given the chance COD would be subscription based.

Console games are irrelevant to him, when WoW is pulling in 165 million dollars a month I can see why he couldn't care less about consoles.

The crappy thing is, like you mentioned, they try to nickel and dime their player bases with DLC that should have been included in the original game anyways.

Merging with Blizzard was the best move Activision ever made. WoW is a license to print money, and Activision sure does love the smell of money.

Just think about when WoW becomes so stale no one plays it anymore.

The only way this would happen is when Blizzard releases their new MMO. Nothing can touch WoW, nothing is close and nothing from another developer will be in the same league.

 

[Ares]

Console games are irrelevant to him, when WoW is pulling in 165 million dollars a month I can see why he couldn't care less about consoles.

The crappy thing is, like you mentioned, they try to nickel and dime their player bases with DLC that should have been included in the original game anyways.

Merging with Blizzard was the best move Activision ever made. WoW is a license to print money, and Activision sure does love the smell of money.



The only way this would happen is when Blizzard releases their new MMO. Nothing can touch WoW, nothing is close and nothing from another developer will be in the same league.

While I agree with most of what you said, IMO he cares more then he lets on just by the comments that he has made in the past and by the actions he has taken.

 

[Shock]

I mean, they all care. He certainly wouldn't want to lose 30% revenue all of the sudden. However you put your time and effort into proven money makers, and WoW definitely is one.

I bet the guys at blizzard takes baths in liquid gold while smoking cubans, and getting lap dances all while they burn money in fireplace.

 

[Ares]

I bet the guys at blizzard takes baths in liquid gold while smoking cubans, and getting lap dances all while they burn money in fireplace.

See kids, when your parents tell you that video games are a waste of time, you have proof to the contrary.