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Forums - Sales Discussion - Activision posts losses for 4th quarter

chapset on 11 February 2010

Me blame wii:
The drop in music and casual games marks a reversal in two growth areas for Activision. “Guitar Hero” has been the leading music game, and Activision was among the early companies to shift resources to games for the Wii as Nintendo’s console gained popularity



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Pingu on 11 February 2010

 

how on earth did that happen, maybe this is why they were ranting about hardware costs again



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stof on 11 February 2010

Wait, someone answer this. is the billion dollar stock buyback considered to be 1 billion of expenses, or is it wealth neutral, since they now have the wealth of that stock?



I'm a mod, come to me if there's mod'n to do. 

Chrizum is the best thing to happen to the internet, Period.

Serves me right for challenging his sales predictions!

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NJ5 on 12 February 2010
stof said:
Wait, someone answer this. is the billion dollar stock buyback considered to be 1 billion of expenses, or is it wealth neutral, since they now have the wealth of that stock?

I am trying to figure that out as well. My preliminary opinion is that it reduces net income, but not by $1 billion. 

However I have asked this to more knowledgeable people, and I'll post the answer when I get it.

 



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Rhonin the wizard on 12 February 2010

Activision has closed some studios and fired staff.

RedOctane was closed. Worked on the Guitar Hero franchise. Source

Luxoflux was closed. It has made mostly movie tie-in games. Source

Staff was layed-off at Neversoft and Radical. Source



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amp316 on 12 February 2010

It's time for Activision to reinvent the Pitfall series in HD. What they should do is include Tomb Raider style puzzles (but much easier) and Gears Of War style shootouts.

I can see it how, it would win several game of the year awards and get much higher scores on Metacritic than the Mario game that most probably be released that year.



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amp316 on 12 February 2010
chapset said:
Me blame wii:
The drop in music and casual games marks a reversal in two growth areas for Activision. “Guitar Hero” has been the leading music game, and Activision was among the early companies to shift resources to games for the Wii as Nintendo’s console gained popularity

Is this a quote from Pachter?



Proud member of the SONIC SUPPORT SQUAD

Tag "Sorry man. Someone pissed in my Wheaties."

"There are like ten games a year that sell over a million units."  High Voltage CEO -  Eric Nofsinger

Biroutman on 12 February 2010

quote

Robert Kotick, CEO of Activision Blizzard, stated, "We delivered better-than-expected calendar year non-GAAP financial results and our fourth quarter non-GAAP net revenues and non-GAAP earnings per share were the highest in our company's history. On a non-GAAP basis, our performance enabled us to deliver the most profitable year in our company's history and record operating margin. We generated approximately $1.2 billion in operating cash flow and ended the year with approximately $3.3 billion in cash and investments.

unquote

so they're gonna use 1bn out of the 3.3bn cash above to buy back their own stocks, to please shareholders and the management and their stock option plans

operating result was very good, the stock rallied 10% the next day, so no activision is not in trouble...



Squilliam on 12 February 2010
stof said:
Ah, I see. That loss is after their one billion dollar stock by back, right? or is the stock buyback considered neutral since they now have the added worth of all that stock?

Assets = Liabilities + Owners equity.

http://www.investopedia.com/articles/02/041702.asp

It reduces assets and equity, however its not an operating expense and therefore doesn't effect their operating losses/profits.



Tease.