Blizzard 2009 Annual Report Download - page 23
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• ThedeclineinsalesofPS2platformtitlesduetotheaginglifecycleofthePS2platformas
consumerstransitiontocurrentgenerationplatforms.
Partiallyoffsettingthisdecreasewasanincreaseinnetrevenuesfromtheexceptionalperformance
ofCallofDuty:ModernWarfare2inNovember2009andgrowthinonlinedigitalrevenuesfrom
downloadablecontent.
Activision’snetrevenuesincreasedfortheyearendedDecember31,2008ascomparedto2007
primarilyasaresultof:
• StrongerperformanceofgamesrelatedtotheGuitarHerofranchise;
• HigherpricepointsfortheGuitarHerofranchise’shardwarebundles,whichconsistedof
drums,guitarsand/ormicrophones,ascomparedtooursoftwareonlyproducts;and
• GrowthintheNintendoWiiplatforminstalledbasepositivelyimpactingWiisoftwaretitles.
ProFormaActivisionSegmentIncomefromOperations
Activision’soperatingincomeincreasedfortheyearendedDecember31,2009ascomparedto
2008primarilydueto:
• ExceptionalperformanceofCallofDuty:ModernWarfare2,whichwasreleasedin
November2009;
• StrongperformancefromnewintellectualpropertylaunchesofDJHeroandPROTOTYPEin
2009;
• Growthinthehighermarginonlinedigitalrevenues;and
• Loweroperatingexpensesstemmingfromcontinuingeffectivecostcontainmentstrategies.
Thesefactorswerepartiallyoffsetbythedecreaseinnetrevenuesdescribedabove.
TheincreaseinActivisionsegmentoperatingincomefortheyearendedDecember31,2008as
comparedto2007wasmainlyattributableto:
• Theincreaseinnetrevenuesdiscussedabove;
Partiallyoffsetby:
• ThehighercostofsalesrelatedtothemanufacturinganddistributioncostoftheGuitarHero
hardwarebundle;and
• Theunfavorableimpactofchangesinforeignexchangerates,astheU.S.dollarstrengthened
primarilyinrelationtotheBritishpound,euroandAustraliandollar.