Activision 2010 Annual Report Download - page 27

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15
The greater success of Call of Duty: Black Ops sales at initial launch compared to Call of Duty: Modern Warfare 2
sales at initial launch is the primary reason that less revenue was deferred during 2010 as compared to 2009. This decrease in
deferred revenue was partially offset by the additional deferral of revenue as a result of the release of World of Warcraft:
Cataclysm 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 the businesses previously operated by Activision, Inc. for the six month period ended June 30, 2009 that were
included in 2009 but not in 2008. The increase in North America, which was further driven by the strong performance of the
Call of Duty franchise, in particular the 2009 release of Call of Duty: Modern Warfare 2. The increase was partially offset by
the impact of weaker sales of games in the music and casual genres in 2009.
Foreign Exchange Impact
Changes in foreign exchange rates had a negative impact of approximately $54 million and $71 million on
Activision Blizzard’s net revenues in 2010 and 2009, respectively. The change is primarily due to the year-over-year
strengthening of the U.S. dollar relative to the British pound and euros.
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, 2010, 2009, and 2008 (amounts in millions):
Year
Ended
December 31,
2010
% of
total
consolidated
net revs.
Year
Ended
December 31,
2009
% of
total
consolidated
net revs.
Year
Ended
December 31,
2008
% of
total
consolidated
net revs.
Increase/
(decrease)
2010 v
2009
Increase/
(decrease)
2009 v
2008
Platform net revenues:
MMORPG .................... $1,230 28% $1,248 29% $1,152 38% $(18) $96
PC and other ................. 325 7 164 4 99 3 161 65
Console
Sony PlayStation 3 .... 854 19 584 14 241 8 270 343
Sony PlayStation 2 .... 35 1 174 4 284 9 (139) (110)
Microsoft Xbox 360 .. 1,033 23 857 19 362 12 176 495
Nintendo Wii ............ 408 9 584 14 407 14 (176) 177
Total console ................. 2,330 52 2,199 51 1,294 43 131 905
Handheld ....................... 184 4 244 6 237 8 (60) 7
Total platform net
revenues ........................ 4,069 91 3,855 90 2,782 92 214 1,073
Distribution ................... 378 9 423 10 227 7 (45) 196
Other* ........................... — — 1 — 17 1 (1) (16)
Total consolidated net
revenues ........................ $4,447 100% $4,279 100% $3,026 100% $168 $1,253