Blizzard 2009 Annual Report Download - page 27

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15
ForeignExchangeImpact
Weestimatethatchangesinforeignexchangerateshadanegativeimpactofapproximately
$71millionand$112milliononActivisionBlizzard’snetrevenuesfortheyearsendedDecember31,2009
and2008,respectively,ascomparedto2008and2007,respectively,astheU.S.dollarstrengthened
primarilyinrelationtotheBritishpound,euro,Australiandollar,Koreanwon,andSwedishkrona.
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,2009,2008,and2007(amountsinmillions):
Year
ended
December31,
2009
%of
total
consolidated
netrevs.
Year
ended
December31,
2008
%of
total
consolidated
netrevs.
Year
ended
December31,
2007
%of
total
consolidated
netrevs.
Increase/
(decrease)
2009v
2008
Increase/
(decrease)
2008v
2007
Platformnetrevenues:
MMORPG...........................
$1,248
29%
$1,152
38%
$1,024
76%
$96
$128
PC........................................
164
4
99
3
94
7
65
5
Console:
SonyPlayStation3..........
584
14
241
8
22
2
343
219
SonyPlayStation2..........
174
4
284
9
71
5
(110)
213
MicrosoftXbox360........
857
19
362
12
38
3
495
324
NintendoWii...................
584
14
407
14
25
2
177
382
Totalconsole.......................
2,199
51
1,294
43
156
12
905
1,138
Handheld.............................
244
6
237
8
65
4
7
172
Totalplatformnet
revenues:..............................
3,855
90
2,782
92
1,339
99
1,073
1,443
Distribution..........................
423
10
227
7
—
—
196
227
Other....................................
1
—
17
1
10
1
(16)
7
Totalconsolidatednet
revenues...............................
$4,279
100%
$3,026
100%
$1,349
100%
$1,253
$1,677
MMORPGnetrevenuesincreasedfortheyearsendedDecember31,2009and2008ascompared
to2008and2007asaresultofthecontinuedgrowthoftheWorldofWarcraftfranchiseandonlinevalue
addedservices.
Netrevenuesfromvariousconsolesandhandheldplatformsincreased,exceptforPS2,forthe
yearendedDecember31,2009ascomparedto2008primarilyasaresultoftheconsummationofthe
BusinessCombination.TheincreasesinnetrevenuesbyplatformfortheyearendedDecember31,2009
wasalsodrivenbythesuccessofourCallofDutyfranchise,inparticular,CallofDuty:ModernWarfare2,
intheXbox360andPS3platforms.Partiallyoffsetingtheincreasewastheweakersalesofgamesinthe
casualgamesandmusicgenresuchastitlesfromourGuitarHerofranchiseandour“value”Wiititlesas
comparedtothecoregamergenre,whichincludestitlesfromtheCallofDutyfranchise.Thiswasdueto
extendedeconomicweaknessandcompetitionfromemergingplatforms,suchastheiPhoneandother
communityinternetapplicationsthataccommodategameplay.PS2platformrevenuesdeclinedduetothe
aginglifecycleofthePS2platformasconsumerstransitiontothecurrentgenerationplatforms.
NetrevenuesacrossallplatformsincreasedfortheyearendedDecember31,2008,ascomparedto
2007duetothefollowing:
• TheconsummationoftheBusinessCombinationresultedinconsolidatednetrevenuesfrom
Activision,Inc.ofapproximately$1,648million,ofwhich$227millionrelatesto
Distributionsegment,beingincludedfromthedateoftheBusinessCombination,butnotfor
priorperiods;and