Activision 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 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 94

  • 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

2010 ANNUAL REPORT

Table of contents

  • Page 1
    2 010 A N N UA L R E P ORT

  • Page 2
    ... Record Year PROV EN BR A NDS, GLOBA L R E ACH, A ND ONLINE LE A DER SHIP First Operating margin* Earnings per share* Billion in operating cash flow Billion in total cash and investments, no debt ever cash dividend * Non-GAAP-For a full reconciliation see tables at the end of the annual...

  • Page 3
    ... to Online Driving Margin Expansion R ECOR D R EV ENUES FROM DIGITA L CH A NNELS* $ %+ Growth .B+ Revenues Operating Margin %+    *Represents Non-GAAP revenues from subscriptions and licensing royalties, value added services, downloadable...

  • Page 4

  • Page 5
    ...Blizzard Entertainment's World of Warcraft is the #1 subscription-based Massively Multiplayer Online Role-Playing Game Worldwide* 12M+ Subscribers 3/2005 11/2005 7/2007 10/2008 10/2010 *# ranking and chart based on internal company records, public data, and/or reports from key distribution...

  • Page 6

  • Page 7
    ...Activision Publishing's Call of Duty is the # selling third-party console and PC franchise of all time* $ .B + Revenues         *# ranking in $s, based on NPD, GFK-Charttrack; graph...

  • Page 8
    2010 A N NUA L R EPORT Another Record Year PROV EN BR A NDS, GLOBA L R E ACH, A ND ONLINE LE A DER SHIP #1 publisher overall, all time highest retail share (1) Biggest year ever in Asia Pacific ® Largest entertainment launch in history (2) ® #1 Best-selling video game of all time (3) ...

  • Page 9
    ...enhanced our financial position. We ended the year with approximately $3.5 billion in cash and investments and no debt. We generated a record $1.4 billion in operating cash flow, a good measure of how we build shareholder value. We also delivered the most profitable year in our company's history, as...

  • Page 10
    ..., and maintaining a close connection with the tastes and interests of our audiences. Over time, our ability to do so has been reflected in our shareholder returns. Since 1991, when the company was insolvent and Brian Kelly and I bought control of Activision, we have kept our plan simple and our...

  • Page 11
    ...downloads, with each posting record launch sales figures. In 2010, Blizzard Entertainment's World of Warcraft, remained the #1 subscription-based massively multiplayer online role-playing game, with over 12 million subscribers worldwide. Last year's expansion, World of Warcraft: Cataclysm, set a new...

  • Page 12
    ...creative risks. Our determination to continue using our core principles to guide our everyday operations should continue to drive our future success. Sincerely, Robert Kotick President and Chief Executive Officer, Activision Blizzard Brian Kelly Co-Chairman of the Board, Activision Blizzard i For...

  • Page 13
    ... to license agreements, game engines and internally developed franchise intangible assets, respectively. Stock Split-In July 2008, the Board of Directors approved a two-for-one split of our outstanding shares of common stock effected in the form of a stock dividend ("the split"). The stock dividend...

  • Page 14
    ... 360 ("Xbox 360") console systems; Nintendo Dual Screen ("NDS") and Nintendo DSi ("DSi") handheld devices; the PC; the Apple iPhone ("iPhone"), the Apple iPad ("iPad") and other mobile devices. Our Activision business involves the development, marketing, and sale of products through retail channels...

  • Page 15
    ... estimates, as applicable, during 2010 Activision Blizzard was the #1 publisher in North America and Europe, collectively; Activision Blizzard was the #1 publisher in North America on Xbox 360, PS3 and PC, collectively; Activision's Call of Duty: Black Ops was the #1 title overall and has achieved...

  • Page 16
    In April 2010, Bungie, a developer of successful game franchises, and Activision announced an exclusive 10-year alliance to bring Bungie's next big action game universe to market. On February 3, 2011, our Board of Directors authorized a new stock repurchase program under which we may repurchase up ...

  • Page 17
    ... important part of our business and we continue to focus on and grow them. For 2010 compared to 2009, our sales through digital channels grew year-over-year. Current Generation of Game Consoles The current generation of game consoles began with Microsoft's launch of the Xbox 360 in 2005, and...

  • Page 18
    ... to be down year-over-year, primarily due to lower revenues from products with low-to-no profitability. In addition, since Blizzard had two major releases in 2010 and has not yet announced a launch date for its next global release, we are currently assuming two fewer titles from Blizzard in 2011 and...

  • Page 19
    .... As such, we are required to recognize the revenues of these game titles over the estimated service periods. The product life may range from a minimum of five months to a maximum of less than a year. The related cost of sales is deferred and recognized to match revenues. In the table above...

  • Page 20
    ... sales of games in the music and casual genres. In 2010, Activision released twelve key titles compared to the release of sixteen key titles in 2009; and Blur and Singularity, two new intellectual properties that were released in the second quarter of 2010, had only limited market success. While...

  • Page 21
    ..., primarily due to the following Release of fewer key titles in 2010 than in 2009 and weaker sales of games in the music and casual genres; Limited market success of two new intellectual properties, Blur and Singularity; and Higher inventory obsolescence of peripherals and write offs as a result of...

  • Page 22
    ... due to Release of World of Warcraft: Cataclysm in the fourth quarter of 2010 and StarCraft II: Wings of Liberty in the third quarter of 2010; Increase in sales of value-added services related to World of Warcraft; and The China region business being back online for full year of 2010 and the...

  • Page 23
    ...revenues and income from operations are as follows: Pro forma Activision Segment Net Revenues Activision's net revenues decreased for 2010 as compared to 2009, primarily due to the: � Release of fewer key titles in 2010 than in 2009 and weaker sales of games in the music and casual genres; and 11

  • Page 24
    ...Duty downloadable content. Pro Forma Activision Segment Income from Operations Activision's operating income decreased in 2010 as compared to 2009, primarily due to the Release of fewer key titles in 2010 than in 2009 and weaker sales of games in the music and casual genres; Limited market success...

  • Page 25
    ... value of Activision, Inc.'s unvested stock awards at the closing date of the Business Combination ($59 million for the year ended December 31, 2008). Pro forma adjustments are shown net of tax using an assumed combined federal and state statutory tax rate of 39.4%. Represents Non-Core activities...

  • Page 26
    ... the current period's presentation. Consolidated net revenues increased in North America and Asia Pacific in 2010 as compared to the same period in 2009, primarily due to the success of the Call of Duty franchise, particularly the release of Call of Duty: Black Ops in the fourth quarter of 2010 and...

  • Page 27
    ...and value-added services in the fourth quarter of 2010. Consolidated net revenues increased in all regions in 2009 as compared to 2008, primarily due to the post-Business Combination net revenues consisting of $690 million in North America, $507 million in Europe and $54 million in Asia Pacific from...

  • Page 28
    ... Xbox 360 platforms driven by the successful releases of World of Warcraft: Cataclysm, StarCraft II: Wings of Liberty and Call of Duty: Black Ops. MMORPG net revenues increased in 2009 compared to 2008 as a result of the continued growth of the World of Warcraft franchise and online value-added...

  • Page 29
    ... in business mix for products with fewer hardware peripherals, and accordingly lower product costs; A greater share of revenues generated by the Blizzard segment, which has a lower overall cost of sales; and Lower intellectual property license expenses due to weaker sales of games in the music and...

  • Page 30
    ...write off of capitalized software development costs of cancelled titles in the amount of $71 million as a result of the rationalization of our title portfolio after the Business Combination. Sales and Marketing (amounts in millions) Year Ended December 31, 2010 % of consolidated net revs. Year Ended...

  • Page 31
    ... the year ended December 31, 2010. In the fourth quarter of 2009, we recorded impairment charges of $24 million, $12 million and $373 million to license agreements, game engines and internally developed franchises intangible assets, respectively, for 2009 within our Activision segment. Restructuring...

  • Page 32
    ...government agency securities during the year ended December 31, 2010. Cash flows used in financing activities primarily reflect our repurchase of 85 million shares of our common stock for an aggregate purchase price of $959 million under the stock repurchase program and payment of a cash dividend of...

  • Page 33
    ... the repurchase program. On February 10, 2010, Activision Blizzard's Board of Directors declared a cash dividend of $0.15 per common share payable on April 2, 2010 to shareholders of record at the close of business on February 22, 2010. On April 2, 2010, we made an aggregate cash dividend payment of...

  • Page 34
    ...shares of common stock to employees and the public and the purchase of treasury shares. We have not utilized debt financing as a source of cash flows. In 2010, cash flows used in financing activities included $959 million used to purchase Activision Blizzard stock under the stock repurchase programs...

  • Page 35
    ... our overall disclosure process. As part of our disclosure process, senior finance and operational representatives from all of our corporate divisions and business units prepare quarterly reports regarding their current quarter operational performance, future trends, subsequent events, internal...

  • Page 36
    ... attributed to the sale of World of Warcraft boxed software and related expansion packs are classified as product sales and revenues attributable to subscription and other value-added services are classified as subscription, licensing and other revenues. Revenue for software products with more than...

  • Page 37
    ... upon the agreement with the rights holder, we may obtain the rights to use acquired intellectual property in multiple products over multiple years, or alternatively, for a single product. Prior to the related product's release, we expense, as part of "cost of sales-intellectual property licenses...

  • Page 38
    ... we use the income approach. Using the income approach requires the use of financial models, which require us to make various estimates including, but not limited to (1) the potential future cash flows for the asset, liability or equity instrument being measured, (2) the timing of receipt or payment...

  • Page 39
    ... include long-term growth rates and operating margins used to calculate projected future cash flows, riskadjusted discount rates based on our weighted average cost of capital, and future economic and market conditions. These estimates and assumptions have to be made for each reporting unit evaluated...

  • Page 40
    ...-sponsored agency debt securities, and $24 million of restricted cash. We also had $23 million in auction rate securities at fair value classified as long-term investments at December 31, 2010. Most of our investment portfolio is invested in short-term or variable rate securities. The Company has...

  • Page 41
    ... by the Company in the reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized, and reported on a timely basis, and (ii) accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate...

  • Page 42
    Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Activision Blizzard, Inc.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, changes in shareholders' equity and cash flows ...

  • Page 43
    ... property licenses ...Deferred income taxes, net ...Other current assets ...Total current assets ...Long-term investments ...Software development ...Intellectual property licenses ...Property and equipment, net ...Other assets ...Intangible assets, net ...Trademark and trade names ...Goodwill...

  • Page 44
    ... of sales-massively multi-player online role-playing game ("MMORPG") ...Cost of sales-software royalties and amortization ...Cost of sales-intellectual property licenses ...Product development ...Sales and marketing ...General and administrative ...Impairment of intangible assets ...Restructuring...

  • Page 45
    ... income ...Issuance of common stock pursuant to employee stock options and restricted stock rights ...Stock-based compensation expense related to employee stock options and restricted stock rights ...Return of capital to Vivendi related to taxes (see Note 16) ...Dividends ($0.15 per common share...

  • Page 46
    ... common stock related to the Business Combination...Repurchase of common stock ...Settlement of payable to Vivendi ...Dividends paid ...Excess tax benefits from stock option exercises ...Net cash provided by (used in) financing activities ...Effect of foreign exchange rate changes on cash and cash...

  • Page 47
    ... ("Xbox 360") console systems; the Nintendo Dual Screen ("NDS") and Nintendo DSi ("DSi") handheld devices; the PC; the Apple iPhone ("iPhone"), the Apple iPad ("iPad") and other mobile devices. Our Activision business involves the development, marketing, and sale of products through retail channels...

  • Page 48
    ... United States, Canada, the United Kingdom ("U.K."), France, Germany, Ireland, Italy, Spain, Australia, Sweden, South Korea, China and the Netherlands. Activision Blizzard's Non-Core Exit Operations Activision Blizzard's non-core exit operations ("Other" or "Non-Core") represent legacy Vivendi Games...

  • Page 49
    ... of the ARS plus accrued but unpaid dividends or interest, at any time during the period between June 30, 2010 and July 2, 2012. Conversely, UBS had the right, in its discretion, to purchase or sell our ARS at any time until July 2, 2012, so long as we receive payment at par value upon any sale or...

  • Page 50
    ... upon the agreement with the rights holder, we may obtain the rights to use acquired intellectual property in multiple products over multiple years, or alternatively, for a single product. Prior to the related product's release, we expense, as part of "cost of sales-intellectual property licenses...

  • Page 51
    ... 31, 2010, the Company's reporting units consisted of Activision, Blizzard, and Distribution. We test goodwill for possible impairment by first determining the fair value of the related reporting unit and comparing this value to the recorded net assets of the reporting unit, including goodwill. In...

  • Page 52
    ... quarter of 2009, we recorded impairment charges of $24 million, $12 million and $373 million to license agreements, game engines and internally developed franchises intangible assets, respectively. (See Note 12 of the notes to consolidated financial statements) Revenue Recognition Product Sales...

  • Page 53
    ... attributed to the sale of World of Warcraft boxed software and related expansion packs are classified as product sales and revenues attributable to subscription and other value-added services are classified as subscription, licensing and other revenues. Revenue for software products with more than...

  • Page 54
    ... for Returns, Price Protection, Doubtful Accounts, and Inventory Obsolescence We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers, market conditions, and the anticipated timing of other releases to assess future...

  • Page 55
    ... related ad is run. Advertising expenses for the years ended December 31, 2010, 2009, and 2008 were $332 million, $366 million, and $241 million, respectively, and are included in sales and marketing expense in the consolidated statements of operations. Income Taxes We account for income taxes using...

  • Page 56
    ... of these equity incentive awards. Equity-settled awards include stock options and restricted shares granted by Vivendi, and the cash-settled awards include stock appreciation rights and restricted stock units granted both by Vivendi and under the Blizzard Equity Plan ("BEP"). The Company records...

  • Page 57
    ...: License agreements ...Developed software ...Game engines ...Internally developed franchises ...Retail customer relationships ...Favorable leases ...Distribution agreements...Activision trade name ...Goodwill ...Long term liabilities ...Deferred tax liability ...Total consideration ... 3 - 10 years...

  • Page 58
    ... of our cash and cash equivalents with original maturities of three months or less at the date of purchase (amounts in millions): At December 31, 2010 2009 Cash ...Time deposits ...Money market funds ...U.S. treasuries and foreign government bonds ...Cash and cash equivalents ...6. Investments...

  • Page 59
    ... in the future. The following table summarizes the contractually stated maturities of our short- and long-term investments classified as available-for-sale at December 31, 2010 (amounts in millions): At December 31, 2010 Amortized cost Fair Value U.S. government agency securities due in 1 year or...

  • Page 60
    ...-offs and impairments of capitalized software development costs and intellectual property licenses are comprised of the following (amounts in millions): For the Years Ended December 31, 2010 2009 2008 Amortization...Write-offs and impairments ...8. Restructuring $322 $314 63 21 $90 89 We have...

  • Page 61
    ...2011, the Board of Directors of the Company approved a restructuring plan involving a focus on the development and publication of a reduced slate of titles on a going-forward basis, including the discontinuation of the development of all music-based games and the closure of the related business unit...

  • Page 62
    ... deduction did exceed the fair value of those options, the tax benefit is credited to accumulated paid in capital. At December 31, 2010, 2009 and 2008, the gross goodwill and accumulated impairment losses by reporting unit are as follows: Activision Blizzard's core operations Balance at December 31...

  • Page 63
    ... amount as of December 31, 2010 in the tables above reflect a new cost basis for license agreements, game engines and internally developed franchises due to impairment charges for the year ended December 31, 2009. The new cost basis includes the original gross carrying amount, less accumulated...

  • Page 64
    ... ended December 31, 2010 within our Activision segment. Similarly in 2009, we recorded impairment charges of $24 million, $12 million and $373 million to license agreements, game engines and internally developed franchises intangible assets, respectively, within our Activision segment. 13. Current...

  • Page 65
    ... customers by geographic region were as follows (amounts in millions): Years Ended December 31, 2009 2008 2010 Net revenues by geographic region: North America ...Europe ...Asia Pacific ...Total geographic region net revenues ...Other* ...Total consolidated net revenues ...Net revenues by platform...

  • Page 66
    ... per common share for the year ended December 31, 2008 does not apply as there were losses during this period. In July 2008, the Board of Directors approved a two-for-one split of our outstanding common stock effected in the form of a stock dividend ("the split"). The stock dividend was issued...

  • Page 67
    ... statutory income tax rate and the income tax expense (benefit) (the effective tax rate) for each of the years are as follows: 2010 For the Years Ended December 31, 2009 2008 Federal income tax provision at statutory rate ...State taxes, net of federal benefit ...Research and development credits...

  • Page 68
    ...million for federal and state purposes, respectively, which begin to expire in fiscal 2016. Through our foreign operations, we have approximately $54 million in net operating loss carryforwards at December 31, 2010, attributed mainly to losses in France, Ireland, and Sweden. We evaluate our deferred...

  • Page 69
    ... Blizzard's tax years 2007 through 2009 remain open to examination by the major taxing jurisdictions to which we are subject, including the United States of America ("U.S.") and non-U.S. locations. Activision Blizzard is currently under audit by the California Franchise Tax Board for the tax years...

  • Page 70
    ...measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at December 31, 2010 Using Quoted Prices in Active Markets for Significant Identical...

  • Page 71
    ... on the average of the closing prices on each of the five business days immediately preceding issuance of the shares. When estimating the fair value, we considered our projection of revenues from the related titles under the earn-out provisions. For the year ended December 31, 2010, there was a $23...

  • Page 72
    ... of ASC Subtopic 360-10, intangible assets were written down to their fair value during in the quarter ended December 31, 2010 within our Activision operating segment. The write down resulted in impairment charges of $67 million, $9 million and $250 million to license agreements, game engines and...

  • Page 73
    We recorded impairment charges of $24 million, $12 million and $373 million to license agreements, game engines and internally developed franchises intangible assets, respectively, in the quarter ended December 31, 2009 within our Activision operating segment. The tables below present intangible ...

  • Page 74
    ... and fiduciary duty, among other claims. The Company is seeking damages and declaratory relief. In addition, 38 current and former employees of Infinity Ward filed a complaint against the Company in Los Angeles Superior Court on April 27, 2010 (Alderman et al. v. Activision Publishing, Inc. et al...

  • Page 75
    ... 2010 to increase the number of shares of our common stock available for issuance thereunder by 56 million. The number of shares of our common stock reserved for issuance under the 2008 Plan may be further increased from time to time by: (i) the number of shares relating to awards outstanding under...

  • Page 76
    ...into a new right to receive an amount in cash eighteen months after the closing upon the terms and subject to the conditions set forth in the BEP and in the Business Combination Agreement, including continued employment through the payment date. The determination of the value of Blizzard shares upon...

  • Page 77
    ... from the grant date to the given time period ("spot rate"). The expected dividend yield assumption for options granted during the year ended December 31, 2010 is based on the Company's historical and expected future amount of dividend payouts. The expected life of employee stock options represents...

  • Page 78
    ..., and $22 million for the years ended December 31, 2010, 2009, and 2008, respectively. Non-Plan Employee Stock Options Granted to Executives In connection with prior employment agreements between Activision, Inc. and Robert A. Kotick, our Chief Executive Officer, and Brian G. Kelly, our Co-Chairman...

  • Page 79
    ...restricted stock rights awarded by Activision, Inc. or Activision Blizzard, awards made to our employees under the BEP, and awards made to our employees under the Vivendi corporate plans described below included in our consolidated statements of operations for the years ended December 31, 2010, 2009...

  • Page 80
    ... Company made dividend equivalent payments of $2 million related to this cash dividend to the holders of restricted stock units. On February 9, 2011, our Board of Directors approved a cash dividend of $0.165 per share to be paid on May 11, 2011 to shareholders of record at the close of business on...

  • Page 81
    ...in cash payments of $79 million to settle its payable and $79 million to distribute its excess cash to Vivendi. Others Activision Blizzard has entered into various transactions and agreements, including cash management services, investor agreement, tax sharing agreement, and music royalty agreements...

  • Page 82
    ... program. Cash Dividend. On February 9, 2011, our Board of Directors approved a cash dividend of $0.165 per common share to be paid on May 11, 2011 to shareholders of record at the close of business on March 16, 2011. 26. Quarterly Financial and Market Information (Unaudited) For the Quarters Ended...

  • Page 83
    Net revenues ...Cost of sales ...Operating (loss) income ...Net (loss) income ...Basic (loss) earnings per share...Diluted (loss) earnings per share... For the Quarters Ended December 31, September 30, June 30, March 31, 2009 2009 2009 2009 (Amounts in millions, except per share data) $1,557 1,012 ...

  • Page 84
    ... December 31, 2010. For periods prior to July 9, 2008, before the Business Combination, the share price information for the Company is for Activision, Inc. In connection with the Business Combination, Activision, Inc. changed its name to Activision Blizzard, Inc. and its fiscal year end from March...

  • Page 85
    ...payment to such shareholders. Additionally, on October 22, 2010, the Company made dividend equivalent payments related to the 2010 cash dividend to the holders of restricted stock units. We did not pay cash dividends in 2009. Upon completion of the Business Combination on July 9, 2008, Vivendi Games...

  • Page 86
    ... stock from time to time on the open market or in private transactions, including structured or accelerated transactions, on terms and conditions to be determined by the Company, until the earlier of March 31, 2012 and a determination by the Board of Directors to discontinue the repurchase program...

  • Page 87
    ... 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...

  • Page 88
    ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES FINANCIAL INFORMATION For the Year Ended December 31, 2010 and 2009 (Amounts in millions) Year Ended December 31, 2009 Amount % of Total 2,622 ...subscriptions and licensing royalties, value added services, downloadable contents, digitally distributed products...

  • Page 89
    ...) Activision Blizzard Distribution ("Distribution") - distributes interactive entertainment software and hardware products. (iv) Other represents Non-Core activities, which are legacy Vivendi Games' divisions or business units that we have exited, divested or wound down as part of our restructuring...

  • Page 90
    ... per share data) Year Ended December 31, 2010 GAAP Measurement Less: Net effect from deferral in net revenues and related cost of sales Less: Stock-based compensation Less: Restructuring (included in general and administrative) Less: Amortization of intangible assets and purchase price accounting...

  • Page 91
    This page intentionally left blank.

  • Page 92
    This page intentionally left blank.

  • Page 93
    ... Angeles, California Corporate Headquarters Activision Blizzard, Inc. 3100 Ocean Park Boulevard Santa Monica, California 90405 (310) 255-2000 World Wide Web Site www.activisionblizzard.com Domestic Offices Officers Robert A. Kotick President and Chief Executive Officer, Activision Blizzard Annual...

  • Page 94
    3100 OCEAN PARK BOULEVARD SANTA MONICA, CALIFORNIA 90405 TELEPHONE: (310) 255-2000 FAX: (310) 255-2100 WWW.ACTIVISIONBLIZZARD.COM