Something went wrong. Try again later

Giant Bomb News

81 Comments

Tidbits From Activision’s Q1 Financial Results

Call of Duty remains big, WoW subscriptions hold steady, and Skylanders.

ZAP!
ZAP!

The person writing up Activision’s financial press releases has it easy. Going back the past few years, each release touts “record” or “better-than-expected” results, largely on Call of Duty’s back.

That hasn’t changed with the company’s first quarter 2012 results, which were, unlike much of the industry, “better-than-expected.”

Activision has a second weapon now, too: Skylanders. More than 30 million of those little buggers has been sold since Skylanders launched last October, and Skylanders Giants is out later this year.

After reading Activison’s financial results and listening to the call with investors and analysts this afternoon, here are the bits that stood out. The first one stuck me as particularly interesting:

  • Revenues from downloadable content for Call of Duty “decreased significantly,” which Activision attributes to making players wait too long for it. Presumably, that won't be the case with Black Ops II.
  • The reduced revenue from downloadable content was “partially” offset by Call of Duty Elite memberships.
  • The Infinity Ward lawsuit goes to trial on May 29, barring another delay, and the company is putting aside money to potentially pay the lawsuit, should the decision go against Activision. If that happens, the company could owe more than $1 billion to Jason West, Vince Zampella, and others. Activision “does not believe such a result would be justified,” but is actively preparing for the lawsuit to have such a large financial impact.
  • More than 30 million Skylanders toys have been sold since last October.
  • Activision is positioning Skylanders to be Activision’s next $1 billion dollar franchise.
  • More than two million users have signed up for annual Call of Duty Elite memberships.
  • No new details on Bungie’s next game or any indication it would be revealed at E3.
  • Likewise, no new details on Blizzard’s next MMO, except that it’s still coming.
  • Diablo III already has more pre-orders than any other Blizzard game.
  • World of Warcraft is holding steady at 10.2 million users, the same number as last quarter. Hmm.
  • Someone asked about next-generation development investments, but it declined to comment.
Patrick Klepek on Google+

81 Comments

Avatar image for kollay
kollay

2170

Forum Posts

49

Wiki Points

0

Followers

Reviews: 0

User Lists: 6

Edited By kollay

10.2 million people is still a whole lot of people.

Avatar image for sagaciousjones
SagaciousJones

156

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By SagaciousJones

World of Warcraft is holding steady at 10.2 million users, the same number as last quarter. Hmm.

I was taking potshots at TOR before it was cool.

Avatar image for mewarmo990
mewarmo990

862

Forum Posts

1131

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By mewarmo990

@DeanoXD said:

I just want to clarify, 10.2M is world wide monthly paying accounts right?

Yes, most likely, since previous numbers also reflected that demographic. Renewed ad campaigns, promotions, and the new expansion are probably helping to offset leaving subscribers.

Avatar image for ptys
ptys

2290

Forum Posts

3

Wiki Points

0

Followers

Reviews: 0

User Lists: 14

Edited By ptys

I see the gaming industry split into two categories, those who play Activision/Blizzard games... and then the rest of us. Not sure if saying they are prepared to pay the Infinity Ward guys 1B, should be public knowledge as it may make the judge more lenient on the plaintiffs. You've got to give credit where it's due though, they know how to make money on video games.

Avatar image for viking_funeral
viking_funeral

2881

Forum Posts

57

Wiki Points

0

Followers

Reviews: 6

User Lists: 5

Edited By viking_funeral

Good for them. I don't care for much of what they're doing these days, but at least they're keeping their fans happy.

Avatar image for hughesman
hughesman

314

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By hughesman

DAMN BOBBY YOU SO CRAZY!

Avatar image for authenticm
AuthenticM

4404

Forum Posts

12323

Wiki Points

0

Followers

Reviews: 1

User Lists: 2

Edited By AuthenticM

How does one listen to investor calls?

Avatar image for kidman
kidman

590

Forum Posts

21

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By kidman

people that rage over a successful company being able to make a profit and still produce mostly decent game makes me laugh.

Avatar image for blatantninja23
BlatantNinja23

933

Forum Posts

267

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By BlatantNinja23

@SuperSonic1305 said:

Activision sucks

really? they seem quite successful

Avatar image for skald
Skald

4450

Forum Posts

621

Wiki Points

0

Followers

Reviews: 11

User Lists: 7

Edited By Skald

More DLC, faster.

Avatar image for wiqidbritt
WiqidBritt

601

Forum Posts

10

Wiki Points

0

Followers

Reviews: 0

User Lists: 5

Edited By WiqidBritt

so wait, they're not counting the elite memberships in their DLC revenue? and they wonder why it went down...

Avatar image for angethedude
AngeTheDude

775

Forum Posts

74

Wiki Points

0

Followers

Reviews: 1

User Lists: 1

Edited By AngeTheDude

@AuthenticM said:

How does one listen to investor calls?

You become an investor...

Avatar image for fugaa
Fugaa

9

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Fugaa

activision owns

Avatar image for recall
Recall

106

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Recall

@BlatantNinja23 said:

@SuperSonic1305 said:

Activision sucks

really? they seem quite successful

their business practices are horrible, just because people buy their goods doesn't mean their work ethics and treatment of employees is what it should be.

Avatar image for digitaldiatribe
digitaldiatribe

117

Forum Posts

5

Wiki Points

0

Followers

Reviews: 0

User Lists: 7

Edited By digitaldiatribe

@mracoon: Fresh from the telex, Scoops has the Scoop of the trial of the century!

Avatar image for godwasp
GODWASP

46

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By GODWASP

I want to try Skylanders. Is it any good?

Avatar image for fminus
FMinus

410

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By FMinus

@Recall said:

@BlatantNinja23 said:

@SuperSonic1305 said:

Activision sucks

really? they seem quite successful

their business practices are horrible, just because people buy their goods doesn't mean their work ethics and treatment of employees is what it should be.

Ah, aside from their overpriced "big hit" games and yearly revisions of the same game, they are just as evil as any other corporation out there, everyone does exactly the same crap, EA, UBI, THQ, etc., you name it - buying up studios then dissolving them and layoffs follow.

Game developers are becoming contractors, you do that shit for us, then find a job somewhere else.

Avatar image for adaptor
Adaptor

247

Forum Posts

179

Wiki Points

0

Followers

Reviews: 0

User Lists: 10

Edited By Adaptor

@brotherstereo said:

Yes, demand for Call of Duty DLC is declining! Finally...

Are you hoping the prices will go down when demand gets less?

Avatar image for cookiemonster
cookiemonster

2561

Forum Posts

42

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By cookiemonster

Activision is my favourite company. Why aren't more companies like activision?

Avatar image for begilerath
begilerath

178

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By begilerath
 @AngeTheDude said:

@AuthenticM said:

How does one listen to investor calls?

You become an investor...

Also you got to have at least one working ear...
Avatar image for skanker
Skanker

284

Forum Posts

5

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Skanker

@GODWASP said:

I want to try Skylanders. Is it any good?

Not especially? It's a pretty basic game. It's a pretty easy game too, with the only challenge for me being the final boss fight. The boss fights are pretty annoying too since you can't skip most cutscenes/dialogue in the game. Plenty of things are annoying because of this, actually.

It's a game aimed at children, really. I would say it's worth playing, but not at the price it's currently (and always will be) selling for. The separate Skylanders are definitely not worth it.

Avatar image for godwasp
GODWASP

46

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By GODWASP

hmm sounds like somthing my girlfriend would enjoy lol

Avatar image for gordo789
Gordo789

364

Forum Posts

2

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Gordo789

the first one STRUCK me as interesting a well. PROOFREAD.

Avatar image for extomar
EXTomar

5047

Forum Posts

4

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By EXTomar

The actual numbers are kind of secondary in WoW and SWTOR. The trick is to make the "common space" feel filled. The guys over at Blizzard understand this where the space and rooms where important stuff happens are not so big or far apart that even on low-med pop servers there is a lot of people standing around in them. On the other hand looking at SWTOR, they often built spaces too big and distances too long between areas that it easily feels like a ghost town during peak usage time on low pop servers. Also WoW goes to greater lengths to insure things like cross server queues to make things like "waiting to join in queue" pop faster gives a sense of more people around while SWTOR doesn't.

When you feel like no one else is play a game, MMO or not, the player tends to move on. From various players, some SWTOR servers are fine but others recount that they went from a guild of 100 down to 5 online and taking forever to find groups. Even if SWTOR is financially fine, situations like that make it impossible to play.

Avatar image for authenticm
AuthenticM

4404

Forum Posts

12323

Wiki Points

0

Followers

Reviews: 1

User Lists: 2

Edited By AuthenticM

@Begilerath said:

@AngeTheDude said:

@AuthenticM said:

How does one listen to investor calls?

You become an investor...

Also you got to have at least one working ear...

So Patrick is an Activision shareholder?

Avatar image for wifipirate
WiFiPirate

195

Forum Posts

207

Wiki Points

0

Followers

Reviews: 11

User Lists: 8

Edited By WiFiPirate

Best part of the article...

Someone asked about next-generation development investments, but it declined to comment.

I dunno, it made me laugh.

Avatar image for begilerath
begilerath

178

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By begilerath
@AuthenticM said:

@Begilerath said:

@AngeTheDude said:

@AuthenticM said:

How does one listen to investor calls?

You become an investor...

Also you got to have at least one working ear...

So Patrick is an Activision shareholder?

I guess so, also under all that crazy hair he has at least one working ear... 
Being a little more serious, if you go to   http://investor.activision.com/ you can register to listen to the investor calls and there is an option for Press/Media,
Avatar image for bisonhero
BisonHero

12791

Forum Posts

625

Wiki Points

0

Followers

Reviews: 1

User Lists: 2

Edited By BisonHero
Revenues from downloadable content for Call of Duty “decreased significantly,” which Activision attributes to making players wait too long for it.

That theory is adorable PR spin, but it's just as likely that players got bored of the multiplayer a lot quicker and were no longer playing the game by the time the DLC came out this time around. I don't think player impatience for DLC release magically skyrocketed in the last 6 months; players are just burning out on new Call of Duty games more quickly now.

Avatar image for morrelloman
morrelloman

645

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 4

Edited By morrelloman

I like these financial blurbs. The business of games is always interesting to me. I wish a smaller company would give more insight into how one goes from idea to $ just for informational purposes to gamers. The big ones are always just playcating to the street and giving stereotypical earnings jargin.

Avatar image for yukoasho
yukoasho

2247

Forum Posts

6076

Wiki Points

0

Followers

Reviews: 6

User Lists: 7

Edited By yukoasho

@Recall said:

@BlatantNinja23 said:

@SuperSonic1305 said:

Activision sucks

really? they seem quite successful

their business practices are horrible, just because people buy their goods doesn't mean their work ethics and treatment of employees is what it should be.

We don't know anything about their work practices other than the hearsay of West and Zampella. EA's transgressions are much better documented.

Also, let's be honest here, nothing Activision does is particularly horrible on the consumer end. They make stuff people buy, end of it. No invasive spyware disguised as distribution services, no forcing everyone to give every bit of information about themselves possible in order to play online, no stripping games of content for DLC later... All in all, they're a regular ass game company that happen to have a couple of assets that make gamers rage irrationally because it's popular to do so among the hive mind.

Avatar image for yukoasho
yukoasho

2247

Forum Posts

6076

Wiki Points

0

Followers

Reviews: 6

User Lists: 7

Edited By yukoasho

@morrelloman said:

I like these financial blurbs. The business of games is always interesting to me. I wish a smaller company would give more insight into how one goes from idea to $ just for informational purposes to gamers. The big ones are always just playacting to the street and giving stereotypical earnings jargin.

Not sure if I'd call it "play acting." These financial reports are for one purpose - telling their investors how the company's going. Said investors are most likely long-time players on Wall Street and therefore naturally have their own shorthand, just as we gamers do.