Activision Reports Record-Setting Results For 2012

Activision Reports Record-Setting Results For 2012

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Thanks to Call of Duty and Skylanders, Activision made even more money in 2012 than it expected.

Say what you will about franchise fatigue and the perils of annual sequelization, but it's a strategy that seems to be working for Activision. The company reported revenues of $1.77 billion for the fourth quarter of the 2012 calendar year, handily beating the previous year's numbers and its prior guidance for the quarter of $1.49 billion. For the full year, Activision $4.86 billion, an increase of more than $100 million over 2011.

The company's success was driven by the usual suspects. Call of Duty: Black Ops 2 was the number-one selling game in dollars across all platforms in the U.S. and Europe, while Modern Warfare 3, despite being a 2011 release, clocked in at number nine. Blizzard Entertainment had huge hits with Diablo 3 and World of Warcraft: Mists of Pandaria, and Skylanders Giants was the best-selling kids title in dollars over the holiday quarter in both North America and Europe. Activision Blizzard also reported better-than-ever digital revenues for the year and was the number-one "third-party interactive entertainment Western digital publisher," according to the company's internal estimates.

"We are very pleased to report that Activision Blizzard delivered the best performance in its history," CEO Bobby Kotick said. "As we look to 2013, we will continue to invest in our established franchises, as well as several new properties. We expect these investments to drive our growth over the long term and to enable us to deliver returns to our shareholders in the years to come."

In other words, it ain't broke and he has no intention of fixing it. Kotick did acknowledge that the company will likely slump a bit in 2013, however, "due to a challenged global economy, the ongoing console transition and a difficult year-over-year comparison because of Blizzard's record-shattering Diablo III success in 2012."

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Andy Chalk:

as well as several new properties.

Really Activsion is going to invest in new IPs???That must be a lie unless that new Bungie game comes out in 2013??I won't believe Activision.

The amount of money a game makes is not strictly correlated to the quality of the actual game.

I'm slightly optimistic over their statements that they're getting some new IP out, but then that means a couple more future franchises that will be milked to death.

Ok that's great Activision, now please, take the changes you made in Black Ops 2.

Still with me? Right. Take those, and go FURTHER, because you were onto some good stuff with the branching storyline and split-screen with bots for objective modes and replayable story and that unfinished TranZit thing.

Oh and sell the zombies maps/spec ops missions seperately _ for cheap. So people who like teh co-ops don't have to fork out for maps they'll never use.

Andy Chalk:
In other words, it ain't broke and he has no intention of fixing it ... Blizzard's record-shattering Diablo III success in 2012."

After reading that I wouldn't be surprised if their prediction of lagging sales in 2013 turned out to be right on the money.

DVS BSTrD:

Andy Chalk:
In other words, it ain't broke and he has no intention of fixing it ... Blizzard's record-shattering Diablo III success in 2012."

After reading that I wouldn't be surprised if their prediction of lagging sales in 2013 turned out to be right on the money.

Its not just Diablo 3 though. Mists of Pandaria released last year too. You're talkin the biggest MMO on the market right now and the most anticipated ARPG of the year. The only thing thats close to that is Heart of the Swarm in 2013, but compared to D3 and Mists its not goin to be all that awesome.

Skylanders is the big thing though. They hit a gold mine with that game. If they release a couple expansions this year they'll probably see a massive profit there. Honestly I keep expectin people to finally go "Yep, I'm done buyin Skylanders stuff" but it never happens. Its like TCG except with games and way more expensive.

shintakie10:

Skylanders is the big thing though. They hit a gold mine with that game. If they release a couple expansions this year they'll probably see a massive profit there. Honestly I keep expectin people to finally go "Yep, I'm done buyin Skylanders stuff" but it never happens. Its like TCG except with games and way more expensive.

Agreed. Its on disc DLC that people go nuts over but you never hear anything bad about it. Funny that. I must admit, it is a clever way for it to work.

Ldude893:

I'm slightly optimistic over their statements that they're getting some new IP out, but then that means a couple more future franchises that will be milked to death.

Whoah, they're going to print more money?

'"In other words, it ain't broke and he has no intention of fixing it. Kotick did acknowledge that the company will likely slump a bit in 2013, however, "due to a challenged global economy, the ongoing console transition and a difficult year-over-year comparison because of Blizzard's record-shattering Diablo III success in 2012."'

What console transition, what challenged global economy that means you will do WORSE than last year?

Just admit you do not release games as regularly as you'd like or admit to the fact it sounds suspiciously like you changed accounting methods to inflate certain areas (although I'd have to scrutinise the notoriously unreadable US financial reports; not on the weekend).

I'm unsurprised, but a little disappointed. We can haz sequels. Yayyyyyyyy.

Oh, from a strictly business standpoint, Activision has it down to an art. It's just that from an art standpoint, it's clearly a business. And while people might complain about some of the more unpleasant changes to franchises like Diablo and Starcraft, or the treatment of members of Infinity Ward or Ron Gilbert, if it doesn't affect their bottom line, it's probably going to go unheeded. Or worse, imitated by others.

Still, there's some hope for Bungie's new franchise, and there was some commentary in a recent Edge magazine that Activision's dealings with the Sleeping Dogs team were actually quite exemplary, and I'll try not to take Kotick's comments about new IP with the snarky suspicion that he means we're going to see Skylanders: Dwarves in 2013. Congratulations, Activision; you managed not to be the most despised publisher on the planet for a spell. Don't go rushing to catch up with EA, 'k?

shintakie10:
Honestly I keep expectin people to finally go "Yep, I'm done buyin Skylanders stuff" but it never happens. Its like TCG except with games and way more expensive.

*Crys into empty wallet* WHHHHHHHHHHHHHHHHHHHHHHHHY!? I need help... or a job.

"As we look to 2013, we will continue to invest in our established franchises, as well as several new properties. We expect these investments to drive our growth over the long term and to enable us to deliver returns to our shareholders in the years to come."

Notice how he doesn't mention making quality product, just product that will give big returns.

The deadly whirlpool of activision continues to swirl fast. well, i guess thier worth it this time.

And yet they wouldn't let Playstation All-Stars use Crash and Spyro.

It makes me sad when we have someone like Bobby in the games industry who doesn't give a rats ass about video games in general just that they have to give big payoffs and reap massive profit and the first sign of a dollar less means liquidation.

 

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