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88
EXPLANATORYNOTE
OnJuly9,2008,abusinesscombination(the“BusinessCombination”)byandamong
Activision,Inc.,SegoMergerCorporation,awhollyownedsubsidiaryofActivision,Inc.,VivendiS.A.
(“Vivendi”),VGACLLC,awhollyownedsubsidiaryofVivendi,andVivendiGames,Inc.(“Vivendi
Games”),awhollyownedsubsidiaryofVGACLLC,wasconsummated.Asaresultoftheconsummationof
theBusinessCombination,Activision,Inc.wasrenamedActivisionBlizzard,Inc.(“ActivisionBlizzard”).
Foraccountingpurposes,theBusinessCombinationistreatedasa“reverseacquisition,”withVivendi
Gamesdeemedtobetheacquirer.ThehistoricalfinancialstatementsofActivisionBlizzard,Inc.priorto
July10,2008arethoseofVivendiGames,Inc.
CAUTIONARYSTATEMENT
ThisAnnualReportcontains,orincorporatesbyreference,certainforwardlookingstatements
withinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Suchstatementsconsistofany
statementotherthanarecitationofhistoricalfactandinclude,butarenotlimitedto:(1)projectionsof
revenues,expenses,incomeorloss,earningsorlosspershare,cashfloworotherfinancialitems;
(2)statementsofourplansandobjectives,includingthoserelatingtoproductreleases;(3)statementsof
futureeconomicperformance;and(4)statementsofassumptionsunderlyingsuchstatements.Wegenerally
usewordssuchas“anticipate,”“believe,”“could,”“estimate,”“expect,”“forecast,”“future,”“intend,”
“may,”“outlook,”“plan,”“positioned,”“potential,”“project,”“remain,”“scheduled,”“setto,”
“subjectto,”“tobe,”“upcoming,”“will,”andothersimilarexpressionstohelpidentifyforwardlooking
statements.Forwardlookingstatementsaresubjecttobusinessandeconomicrisk,reflectmanagement’s
currentexpectations,estimatesandprojectionsaboutourbusiness,andareinherentlyuncertainand
difficulttopredict.Ouractualresultscoulddiffermaterially.Theforwardlookingstatementscontained
hereinspeakonlyatthedateonwhichourForm10KfortheyearendedDecember31,2009wasfirst
filed.Risksanduncertaintiesthatmayaffectourfutureresultsinclude,butarenotlimitedto,saleslevelsof
ActivisionBlizzard’stitles,shiftsinconsumerspendingtrends,theimpactofthecurrentmacroeconomic
environment,theseasonalandcyclicalnatureoftheinteractivegamemarket,anyfurtherdifficulties
relatedtoWorldofWarcraftinChina,ActivisionBlizzard’sabilitytopredictconsumerpreferencesamong
competinghardwareplatforms,declinesinsoftwarepricing,productreturnsandpriceprotection,product
delays,retailacceptanceofActivisionBlizzard’sproducts,competitionfromtheusedgamemarket,
adoptionrateandavailabilityofnewhardware(includingperipherals)andrelatedsoftware,industry
competitionandcompetitionfromotherformsofentertainment,rapidchangesintechnology,industry
standardsandconsumerpreferencesincludinginterestinspecificgenressuchasmusic,firstpersonaction
andmassivelymultiplayeronlinegames,protectionofproprietaryrights,litigationagainstActivision
Blizzard,maintenanceofrelationshipswithkeypersonnel,customers,licensees,licensors,vendors,and
thirdpartydevelopers,includingtheabilitytoattract,retainanddevelopkeypersonnelanddevelopers
whichcancreatehighquality“hit”titles,counterpartyrisksrelatingtocustomers,licensees,licensorsand
manufacturers,domesticandinternationaleconomic,financialandpoliticalconditionsandpolicies,
foreignexchangeratesandtaxrates,integrationofrecentacquisitionsandtheidentificationofsuitable
futureacquisitionopportunities,andtheotherfactorsidentifiedinriskfactorssectionofourAnnual
ReportonForm10KfortheyearendedDecember31,2009.Theforwardlookingstatementscontained
hereinarebaseduponinformationavailabletousasofthedateoftheAnnualReportonForm10Kand
weassumenoobligationtoupdateanysuchforwardlookingstatements.Forwardlookingstatements
believedtobetruewhenmademayultimatelyprovetobeincorrect.Thesestatementsarenotguaranteesof
ourfutureperformanceandaresubjecttorisks,uncertaintiesandotherfactors,someofwhicharebeyond
ourcontrolandmaycauseactualresultstodiffermateriallyfromcurrentexpectations.
ActivisionBlizzard’snames,abbreviationsthereof,logos,andproductandservicedesignatorsare
alleithertheregisteredorunregisteredtrademarksortradenamesofActivisionBlizzard.