Activision Blizzard Reports Better Year Despite Losing Fourth Quarter

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Activision BlizzardActivision Blizzard reported its financial results for its fourth quarter and fiscal year ended December 31, 2010, and announced the death of its Guitar Hero business unit. Read on for more details...
Activision Blizzard reported a fourth quarter net loss of $233 million, compared to a net loss of $286 million in the same quarter the previous year. For the full 2010 year, Activision Blizzard reported net income of $418 million compared to net income of $113 in the prior year.

Activision Blizzard credited World of Warcraft (particularly the release of the Cataclysm expansion) and Call of Duty: Black Ops as being the company's economic drivers, downplaying the fact that "due to continued declines in the music genre, the company will disband Activision Publishing's Guitar Hero business unit and discontinue development on its Guitar Hero game for 2011." The company has also stopped development on True Crime: Hong Kong.

Once again, World of Warcraft is an enormous contributor to the company's profitability, providing $340 million (24%) of GAAP net revenues in the fourth quarter (compared to $309 million in the previous year). For the full year, MMORPG income was $1.230 billion (28% of GAAP net revenues), compared to $1.248 billion in 2009.

While the overall results are strong, the financial information and investor slides released by Activision Blizzard make it look like Blizzard is helping prop up Activision Publishing's problems, with the Call of Duty franchise being Activision Publishing's remaining big success story.

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This page contains a single entry by Editor published on February 9, 2011 2:31 PM.

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