Blizzard 2009 Annual Report Download - page 20
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• StrongperformancefromnewintellectualpropertylaunchesofDJHeroandPROTOTYPEin
2009;and
• ExceptionalperformancefromCallofDuty:ModernWarfare2.
ThesewerepartiallyoffsetbystrongerperformanceoftheGuitarHerofranchisein2008versus
2009.
FortheyearendedDecember31,2008,netrevenuesfromtheActivisionsegmentincreasedas
comparedto2007primarilyduetotheconsummationoftheBusinessCombination,whichresultedin
revenuesfromActivision,Inc.ofapproximately$1,988millionbeingincludedfromthedateofthe
BusinessCombination,butnotin2007.
Blizzard
Blizzard’snetrevenuesdecreasedfortheyearendedDecember31,2009ascomparedto2008
primarilyduetononewreleasesin2009andaninterruptionoflicensingroyaltiesforWorldofWarcraftin
ChinafromJune2009toSeptember2009asaresultofalicensetransfer.Thiscomparedto2008withthe
successfulNovember2008releaseofthesecondexpansionpackofWorldofWarcraft:WrathoftheLich
King.Thisdecreasewaspartiallyoffsetbyanincreaseinothervalueaddedservicerevenues.
Blizzard’snetrevenuesincreasedfortheyearendedDecember31,2008ascomparedto2007
primarilyduetothereleaseofthesecondexpansionpackofWorldofWarcraft:WrathoftheLichKingin
November2008andanincreaseinthenumberofWorldofWarcraftsubscribers.
Distribution
TheincreaseinDistributionnetrevenuesfortheyearendedDecember31,2009ascomparedto
2008wasprimarilyduetotheconsummationofBusinessCombinationinwhichnetrevenuesof
$148millionfromtheDistributionbusinessesoperatedbyActivision,Inc.forthesixmonthsended
June30,2009wereincludedintheyearendedDecember31,2009,butnotin2008.
TheincreaseinDistributionnetrevenuesfortheyearendedDecember31,2008ascomparedto
2007isduetotheconsummationoftheBusinessCombination,whichresultedinrevenuesfrom
Activision,Inc.of$227millionrelatingtoDistributionsegmentbeingincludedfromthedateofthe
BusinessCombinationbutnotin2007.
SegmentIncome(Loss)fromOperationsHighlights
Activision
FortheyearendedDecember31,2009,operatingincomefromtheActivisionsegmentincreased
ascomparedto2008primarilyduetothefollowing:
• TheincreaseinnetrevenuesfromActivisionasnotedabove;and
• Loweroperatingexpensesstemmingfromcontinuingeffectivecostcontainmentstrategies.
FortheyearendedDecember31,2008,operatingincomefromtheActivisionsegmentincreased
ascomparedto2007primarilyduetotheconsummationoftheBusinessCombination,whichresultedin
operatingincomefromActivision,Inc.ofapproximately$371millionbeingincludedfromthedateofthe
BusinessCombination,butnotin2007.
Blizzard
FortheyearendedDecember31,2009,operatingincomefromtheBlizzardsegmentdecreasedas
comparedto2008primarilyasaresultofthefollowing: