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Remember that $550 million is revenue at retail. Retaillers and Sony/Microsoft both get a big cut of that. So it's probably closer to $150 million in profit for Activision than $350 million.

150 million of 550 million is a 27% margin business, which I think makes sense.



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.