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Forums - Sales - Activision Blizzard Q2 FY09 - $108m Income loss

Business Highlights

-- For the September quarter, Activision Blizzard had two of the top-10 titles in dollars on all console platforms in the U.S., according to The NPD Group.

-- For the September quarter, Activision Blizzard was the #1 third-party publisher on the Nintendo DS, according to The NPD Group.

-- For the September quarter, Guitar Hero: On Tour was the #1 best-selling title overall in North America for the Nintendo DS, according to The NPD Group.

-- For the September quarter, Activision Blizzard had two of the top-five PC titles worldwide -- Blizzard Entertainment's World of Warcraft: Battle Chest® and Call of Duty 4: Modern Warfare, according to Charttrack, Gfk and The NPD Group.

-- For the first nine months of the calendar year, Guitar Hero remained the #1 best-selling franchise in U.S. on all console platforms, according to the NPD Group.

-- On October 28, 2008, Blizzard Entertainment, Inc. announced that the subscribership for World of Warcraft, its award-winning MMORPG, exceeded 11 million players worldwide.

There was a Loss of $108 millions in Q2 FY09.

Revenue Breakdown for Quarter ended September 30:

46% PC
     42% MMOG
     4% Retail

42% Consoles
     13% Wii
     11% Xbox 360
     9% Playstation 3
     9% Playstation 2

12% Handheld
     10% Nintendo DS
      2% PSP

http://biz.yahoo.com/prnews/081105/law099.html?.v=101



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Okay, I am shocked by this. Hasn't Activision and Blizzard both been making heaps before the merger?



http://www.vgchartz.com/games/userreviewdisp.php?id=261

That is VGChartz LONGEST review. And it's NOT Cute Kitten DS

All their big releases are in the next quarter, COD5, GHIV and WoLK.



I woudn't be worried too much as they announced a 1 billion $ stock buy back program at the same time so they must be expecting huge profit next quarter...

I think the fact that the console business is so seasonnal for Activision probably caused those losses.

There are probably costs linked to the merger and the closing of some of the studios they announced last month too...

Edit : If you look at the press release they had 278 million $ one time costs due to the merger and the closing of non core business ( read those few studios they closed).



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

That makes no sense.... Blizzard should be raking in major money. Where is it all going to?



Tag(thx fkusumot) - "Yet again I completely fail to see your point..."

HD vs Wii, PC vs HD: http://www.vgchartz.com/forum/thread.php?id=93374

Why Regenerating Health is a crap game mechanic: http://gamrconnect.vgchartz.com/post.php?id=3986420

gamrReview's broken review scores: http://gamrconnect.vgchartz.com/post.php?id=4170835

 

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FishyJoe said:
All their big releases are in the next quarter, COD5, GHIV and WoLK.

What he said!

 



All hail the KING, Andrespetmonkey

So for Activision/Blizard WOW/PC = PS2+PS3+Wii+360?

Interesting numbers.



Tease.

vlad321 said:
That makes no sense.... Blizzard should be raking in major money. Where is it all going to?

Development for Warcraft IV & World of Starcraft MMORPG

 



All hail the KING, Andrespetmonkey

Squilliam said:
So for Activision/Blizard WOW/PC = PS2+PS3+Wii+360?

Interesting numbers.

 

What's interesting is the fact that Blizzard is raking in more than Activision, since Activison has no MMOGs. I'm also fairly sure that 4% retail is almost solely BLizzard's.



Tag(thx fkusumot) - "Yet again I completely fail to see your point..."

HD vs Wii, PC vs HD: http://www.vgchartz.com/forum/thread.php?id=93374

Why Regenerating Health is a crap game mechanic: http://gamrconnect.vgchartz.com/post.php?id=3986420

gamrReview's broken review scores: http://gamrconnect.vgchartz.com/post.php?id=4170835

 

vlad321 said:
That makes no sense.... Blizzard should be raking in major money. Where is it all going to?

 

Like I said they had 278 million$ of costs due to the merger and closing some Sierra studios.

Discount that and they made over 160 million $ of profit in a quarter with no major release.

 



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !