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Kasz216 on 11 February 2009
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Malachi said:
Bodhesatva said:
Malachi said:
Bodhesatva said:

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

Actually, that by the Non-GAAP measurement, the 72 million net income loss is by the GAAP measurement.

 

 

 Thank you for the correction. As to your previous question: the answer is clearly "World of Warcraft." That's where "online game" actually makes a difference. For example, renewed subscriptions for a year would be deferred over the course of a year rather than immediately counted in full.

No problem. As for WOW, I hadn't though about that. Make sense since they still need to provide the service. The deffered revenue seem to impact console games as well, I just stumbled upon this in the report:

"Revenues related to the sale of World of Warcraft boxed software, including the sale of expansion packs and other ancillary revenues, is deferred and recognized ratably over the estimated customer life beginning upon activation of the software and delivery of the services.

As a consequence, the company's non-GAAP results exclude the impact of the change in deferred revenues and related costs of sales related to certain of the company's online-enabled games for certain of the Microsoft, Sony, Nintendo and PC platforms and for World of Warcraft boxed software, including the sale of expansion packs and other ancillary revenues, in order to provide comparable year-over-year performance."

Doesn't specify which game. I can't think of any console game which could be affected by what you mentioned. Did they release any subscription based game on console? Or maybe sell game card which can be used to buy stuff online(GH track?).

If i remember correctly some comapany defers Xbox 360 revenue and not PS3 revenue for some reason.  I want to say EA... or Ubisoft.

I could never figure out that one.  Maybe there is something iherent about 360 games that causes their revenue to be deferred in their deals with MS?