2011 was another great year for Activison, which raked in more than $4.7 billion in revenues.
Here's something to think about the next time you find yourself irritated, frustrated or flat-out angered by Activision's business practices and insistence on keeping Bobby Kotick at the helm: in 2011, the publisher raked in $4.755 billion in GAAP net revenues [$4.489 billion non-GAAP], saw its earnings per share grow by a record-setting 17 percent and achieved a GAAP operating margin of 28 percent [30 percent non-GAAP], also a record. It also generated nearly $1 billion in operating cash flow.
34 percent of Activision's total revenues for 2011 - $1.6 billion - came from digital sales, including World of Warcraft, which ended the year with 10.2 million subscribers, and also Call of Duty Elite, which now boasts over seven million registered users, including more than 1.5 million people who paid $50 for the "annual premium" subscription. Call of Duty: Modern Warfare 3 was the best-selling game of the year and became the first and so far only entertainment product to break the $1 billion mark in 16 days, besting the record set by Avatar by one day. Perhaps unexpectedly, Skylanders: Spyro's Adventures was not only the number-one kids game for the year but also "the biggest new IP launch in Activision's history," according to Kotick. Even Call of Duty: Black Ops, which came out in 2010, is still selling like gangbusters and managed to be the fifth-best-selling title in dollars in 2011.
Activision's outlook for 2012 is pretty much all sunshine and lollipops too. The Call of Duty: Modern Warfare 3 Content Collection, a bundle of DLC previously released to CoD Elite premium subscribers, comes out in March and two Blizzard products, presumed to be Diablo 3 and Blizzard DoTA, will also be out later this year. The company's outlook for 2012 calendary year is $4.15 billion GAAP and $4.5 billion non-GAAP.
I'm not strictly sure where I get the impression, but Kotick seems to be an absolute expert at maximizing short-term growth...though the long term profitabiliy of some things he does are questionable.
Again people, if you REALLY HATE how Activition does business, don't buy their games. Otherwise, sales for their next call of duty games, sales for their latest WoW expansion will only go up.
Dexter111: Don't worry, you'll soon report about Activision like you're reporting about Zynga right now... they have max. another 3-5 years.
I'm unironically interested in hearing your reasoning on that.
Agreed. I suppose you could make the argument that there biggest products CoD and WoW might be getting stale, but then again more and more people are buying them all the time.
Dexter111: Don't worry, you'll soon report about Activision like you're reporting about Zynga right now... they have max. another 3-5 years.
I'm unironically interested in hearing your reasoning on that.
As the other guy said, they've killed off everything they had and their entire business is based on Call of Duty and "whatever Blizzard does next" (especially World of Warcraft or MMO-based stuff), it just takes a branch failing as Guitar Hero or Tony Hawk did before because they oversaturated the market and their entire business model goes up in flames.
Dexter111: Don't worry, you'll soon report about Activision like you're reporting about Zynga right now... they have max. another 3-5 years.
I'm unironically interested in hearing your reasoning on that.
As the other guy said, they've killed off everything they had and their entire business is based on Call of Duty and "whatever Blizzard does next" (especially World of Warcraft or MMO-based stuff), it just takes a branch failing as Guitar Hero or Tony Hawk did before because they oversaturated the market and their entire business model goes up in flames.
Well lets see, WoW still makes lots of moneys. Diablo 3 is going to release some time this year and thats a given on how well that will do. Starcraft 2 exists. Their next Call of Duty game and the one after, and the one after, and...the one after, is still going to make tons of moneys. And of course, Blizzard will release a whole new MMORPG (AKA Titan) sometime in the future. So...
How will Activation fall in 3-5 years exactly? Because at this point, they have enough money to buy 5 countries.
Andy Chalk: ... and two Blizzard products, presumed to be Diablo 3 and Blizzard DoTA, will also be out later this year.
I don't know about DOTA, but Mists of Pandarianeeds to come out this year. Dragon Soul raid will not last another ten months, and Blizzard have already said that there are no more content patches for Cataclysm.
Jove: Well lets see, WoW still makes lots of moneys. Diablo 3 is going to release some time this year and thats a given on how well that will do. Starcraft 2 exists. Their next Call of Duty game and the one after, and the one after, and...the one after, is still going to make tons of moneys. And of course, Blizzard will release a whole new MMORPG (AKA Titan) sometime in the future. So...
How will Activation fall in 3-5 years exactly? Because at this point, they have enough money to buy 5 countries.
It's funny how you think that just because it's a Blizzard MMO it will be just as successful as their previous one (which is declining fast, what was it like 2 million people less?).
Also, no game franchise will live on forever, especially if new shit comes out every year, a lot of popular Shooter franchises like Quake, Unreal Tournament, Doom etc. pretty much "died" before and even consoley things like Halo lost popularity over time. Especially with a new impending console generation within the next 2 years that is about to be defined and get its own "top titles" it remains to be seen if they can continue their trend like this.
Robert Ewing: Does this mean they can make some decent games now? And of course, exclude Blizzard from that corporate dig. Blizzard games are always top notch.
that rebbot of spyro did well and soon the reboot of tony hawk could make Activison do more new IPs?? Because they are willing to fund it??
I don't know about DOTA, but Mists of Pandarianeeds to come out this year. Dragon Soul raid will not last another ten months, and Blizzard have already said that there are no more content patches for Cataclysm.
when does Guild Wars 2 come out because WOW needs get that expansion pack out or many people will leave for Guild wars 2 or TOR
Modern Warfair is just like Avatar: all style and no substance With all that money you'd think they could spare some to hire more people to finish HotS. Imagine: 2 maybe 3 full-time employees?
Jove: Well lets see, WoW still makes lots of moneys. Diablo 3 is going to release some time this year and thats a given on how well that will do. Starcraft 2 exists. Their next Call of Duty game and the one after, and the one after, and...the one after, is still going to make tons of moneys. And of course, Blizzard will release a whole new MMORPG (AKA Titan) sometime in the future. So...
How will Activation fall in 3-5 years exactly? Because at this point, they have enough money to buy 5 countries.
It's funny how you think that just because it's a Blizzard MMO it will be just as successful as their previous one (which is declining fast, what was it like 2 million people less?).
Also, no game franchise will live on forever, especially if new shit comes out every year, a lot of popular Shooter franchises like Quake, Unreal Tournament, Doom etc. pretty much "died" before and even consoley things like Halo lost popularity over time. Especially with a new impending console generation within the next 2 years that is about to be defined and get its own "top titles" it remains to be seen if they can continue their trend like this.
Yeah 2 million ppl less is quite a ton to lose....if it was any other MMO. WoW still has like what, 10 or 11 million subscribers. They still get a billion+ dollars a year just from subscriptions on that game lol. And even when the day comes that the game finally shuts down, their new MMO will take it's place (Titan), while still maintaining other MMO games like Starcraft and Diablo.
Obviously, but until the day we finally see another shooter take Call of Duty's place (which at this pace, wont happen for quite a while), were going to continue to see the next Call of Duty: Vietnam and Call of Duty: Modern Warfare 7 and will still make record breaking sales numbers. As much as I would love to see this change, the reality is at this rate, not going to happen for quite a long time.
Hell if freaking SEGA can still release crappy Sonic games, then I'm sure Activition is comfortable releasing the same call of duty game every year or two.
LIES! We all know very well the industry is near death due to pirates and those terrorist scum second hand gamers. Their profits going up during all that and a recession... never!
Does activision actually do new IP's? This isn't a dig I genuinely want to know. I cant remember something coming from them (or ea really) that isn't a sequel or reboot :s or a movie tie in.
Uratoh: I'm not strictly sure where I get the impression, but Kotick seems to be an absolute expert at maximizing short-term growth...though the long term profitabiliy of some things he does are questionable.
When you're talking about billions of dollars does it really matter? When people think of multiplayer shooters COD is the name that instantly springs to mind, same with the three Blizzard series and their respective genres. I think Guitar Hero is one of theirs as well. That kind of brand recognition means that when that guy retires he's going to be living comfortably in the south of France for quite a while.
Jove: Again people, if you REALLY HATE how Activition does business, don't buy their games. Otherwise, sales for their next call of duty games, sales for their latest WoW expansion will only go up.
I really hate how activision does business, I haven't bought one of their games for a few years now, I'm just sad that stale franchises still sell so well, but I seem to be in the minority that I like my games to be different.
1. Nothing to do with, and makes no reference to, previous Spyro games. 2. Spyro is reduced to an ugly secondary character. 3. Even Kotick refers to Skylanders as a new IP.
OK, I can get behind the idea of making new games, especially for kids, but using the name of my beloved Spyro for nothing more than brand recognition? That's disgusting.
OT: People still play COD. Ummm... yay? I don't hate Activision for giving people exactly what they want. There are plenty of other, much more logical reasons to hate Activision. Like ruining and exploiting the franchises that I love.
Uratoh: I'm not strictly sure where I get the impression, but Kotick seems to be an absolute expert at maximizing short-term growth...though the long term profitabiliy of some things he does are questionable.
When you're talking about billions of dollars does it really matter? When people think of multiplayer shooters COD is the name that instantly springs to mind, same with the three Blizzard series and their respective genres. I think Guitar Hero is one of theirs as well. That kind of brand recognition means that when that guy retires he's going to be living comfortably in the south of France for quite a while.
Eh, I'm probably just bitter that he's profiteering franchises that used to be near and dear to my heart, and as much as I understand how it's all about the bottom line, I'd rather not see properties go down in the name of short term gains.
Where. The fuck. Is DJ HERO 3D, Activision?! You ever going to release that thing? You said you were just putting the franchise on hiatus for 2011, and now it's 2012, so give me a goddamn release date!
Eh, I'm probably just bitter that he's profiteering franchises that used to be near and dear to my heart, and as much as I understand how it's all about the bottom line, I'd rather not see properties go down in the name of short term gains.
My point was it isn't short term. COD, Guitar Hero, WoW and Starcraft and, to a lesser extent, Diablo are all the first names you think of when you think of their genres. As much flak as COD gets on these forums you can't argue that it isn't competenent at what it sets out to do; provide a framework for multiplayer shooting.
I've never seen a problem with Activision and that's coming from someone who's left wing by UK standards never mind US. They have real talent and real enthusiasm behind their games and the marketing is perfect. Keeping in mind that as publishers the marketing is all they're really responsible for it's hard to find fault with them.
Activision Reports Record-Setting Results For 2011
2011 was another great year for Activison, which raked in more than $4.7 billion in revenues.
Here's something to think about the next time you find yourself irritated, frustrated or flat-out angered by Activision's business practices and insistence on keeping Bobby Kotick at the helm: in 2011, the publisher raked in $4.755 billion in GAAP net revenues [$4.489 billion non-GAAP], saw its earnings per share grow by a record-setting 17 percent and achieved a GAAP operating margin of 28 percent [30 percent non-GAAP], also a record. It also generated nearly $1 billion in operating cash flow.
34 percent of Activision's total revenues for 2011 - $1.6 billion - came from digital sales, including World of Warcraft, which ended the year with 10.2 million subscribers, and also Call of Duty Elite, which now boasts over seven million registered users, including more than 1.5 million people who paid $50 for the "annual premium" subscription. Call of Duty: Modern Warfare 3 was the best-selling game of the year and became the first and so far only entertainment product to break the $1 billion mark in 16 days, besting the record set by Avatar by one day. Perhaps unexpectedly, Skylanders: Spyro's Adventures was not only the number-one kids game for the year but also "the biggest new IP launch in Activision's history," according to Kotick. Even Call of Duty: Black Ops, which came out in 2010, is still selling like gangbusters and managed to be the fifth-best-selling title in dollars in 2011.
Activision's outlook for 2012 is pretty much all sunshine and lollipops too. The Call of Duty: Modern Warfare 3 Content Collection, a bundle of DLC previously released to CoD Elite premium subscribers, comes out in March and two Blizzard products, presumed to be Diablo 3 and Blizzard DoTA, will also be out later this year. The company's outlook for 2012 calendary year is $4.15 billion GAAP and $4.5 billion non-GAAP.
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