Activision 2012 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2012 Activision annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

13
Further, the launch of Skylanders Spyro’s Adventure and the increase in Distribution segment revenues in Europe contributed to the increase in
consolidated net revenues. These increases were partially offset by the additional deferral of revenues as a result of greater sales from the launch
of Call of Duty: Modern Warfare 3 in November 2011.
Consolidated net revenues from North America decreased slightly in 2011 as compared to 2010, primarily due to the decrease in net
revenues from music and casual titles and the greater sales from the launch of Call of Duty: Modern Warfare 3 which resulted in additional
deferral of revenues. These decreases were almost entirely offset by the success of Call of Duty catalog titles, stronger performance of
downloadable content packs for Call of Duty: Black Ops, the releases of World of Warcraft: Cataclysm and StarCraft II: Wings of Liberty in
2010, and the launch of Skylanders Spyro’s Adventure, all of which resulted in increased revenues recognized in 2011 as compared to 2010.
The releases of Call of Duty: Black Ops, World of Warcraft: Cataclysm and StarCraft II: Wings of Liberty in 2010 were the primary
reason why more deferred revenues were recognized during 2011 as compared to 2010 across all regions. This increase in the recognition of
deferred revenues was partially offset by greater revenues deferred in 2011 as a result of the higher sales from the initial launch of Call of Duty:
Modern Warfare 3 as compared to Call of Duty: Black Ops.
Foreign Exchange Impact
Changes in foreign exchange rates had a negative impact of approximately $114 million and a positive impact of approximately
$100 million on Activision Blizzard’s net revenues in 2012 and 2011, respectively. The change is primarily due to the year-over-year movements
of the British pound, Euro and Australian dollar average rates relative to the U.S. dollar.
Net Revenues by Platform
The following table details our net revenues by platform and as a percentage of total consolidated net revenues for the years ended
December 31, 2012, 2011, and 2010 (amounts in millions):
Year Ended
December 31,
2012
% of
total
consolidated
net revs.
Year
Ended
December 31,
2011
% of
total
consolidated
net revs.
Year
Ended
December 31,
2010
% of
total
consolidated
net revs.
Increase/
(decrease)
2012 v 2011
Increase/
(decrease)
2011 v
2010
Platform net revenues:
Online subscriptions(1) ...............................
$986
20%
$1,357
29%
$1,230
28%
$(371)
$127
PC and other(2) ...........................................
1,214
25
374
8
325
7
840
49
Console
Sony PlayStation 3 ...............................
876
18
948
20
889
20
(72)
59
Microsoft Xbox 360 .............................
1,019
21
1,140
24
1,033
23
(121)
107
Nintendo Wii and Wii U ......................
291
6
351
7
408
9
(60)
(57)
Total console .............................................
2,186
45
2,439
51
2,330
52
(253)
109
Handheld ...................................................
164
4
167
3
184
4
(3)
(17)
Total platform net revenues ...........................
4,550
94
4,337
91
4,069
91
213
268
Distribution ................................................
306
6
418
9
378
9
(112)
40
Total consolidated net revenues .....................
$4,856
100%
$4,755
100%
$4,447
100%
$101
$308