Activision reports Q4 results

[Bodhesatva]

Folks please note this: by GAAP (generally accepted accounting practices), Activision Blizzard made an enormous profit of 429 million last quarter, beating analyst expectations.

The loss comes from deferred revenue. Activision deferred some of the revenue they made this quarter to the succeeding quarters to streamline their figures and not make it look quite so much like an enormous jump in revenue for one quarter. An example: if a company makes 10 billion a year, and all 10 billion of that occurs on January 1st when subscription fees for their product are renewed, they will commonly defer revenue throughout the year so that their revenue is 2.5 billion per quarter. People dont like seeing 10/0/0/0 when they look at their FRs.