Activision 2011 Annual Report Download - page 16

platforms—via web browsers, through game consoles, within the
game interface and through mobile applications including custom
applications for iOS and Android tablets and smart phones. As of
April 2012, there were more than 1.8 million downloads of the
Call of Duty mobile app.
We plan to continue to expand the Call of Duty franchise by
entering new markets and establishing new business models. Our
studio in Shanghai is working hard on our first, large-scale free-
to-play microtransaction Call of Duty game for China, which is
one of the largest and fastest growing markets in the world.
In addition to entering new markets, we are also launching new
intellectual properties. In October of 2011, Activision Publishing
launched Skylanders Spyro’s Adventure which became the biggest
new IP launch in the company’s history and in North America
ranked as the #10 best-selling title in dollars, including accessory
packs and figures for calendar 2011. By pairing world-class
character design, world-class video game design and world-class
storytelling into one entertainment experience, Skylanders Spyro’s
Adventure created a whole new genre that bridges the gap between
the real and virtual worlds.
Through an innovative use of technology, the game allows players
to transport real-world toys into virtual worlds of adventure
through the “Portal of Power.” These toys with brains can come to
life inside the game across multiple gaming platforms, as well as on
handheld gaming devices, mobile devices and on the web,
remembering achievements and level-ups wherever they go. The
game delivers the first-ever cross-platform gameplay experience
across the Xbox 360 video game and entertainment system from
Microsoft, PlayStation®3 computer entertainment system, the
Nintendo Wii™ and 3DS™, a variety of mobile devices, Windows
PC and the web. As of February 2012, the Skylanders Universe
web world had more than 1 million registered users.
Skylanders Spyro’s Adventure marks a wholesale change in the
interaction between toys and video games and has opened up a
major new revenue stream for Activision Publishing. Globally, the
toy industry worldwide represents an $80 billion dollar opportunity
and in less than three months, the company sold more than 20
million Skylanders characters worldwide. We are very excited about
the future opportunities for this new franchise and in February
announced a new game for 2012: Skylanders GIANTS™.
Today, we own some of the most valuable franchises in interactive
entertainment, including Blizzard Entertainment’s World of
Warcraft, which remains the #1 subscription-based MMORPG in
the world. World of Warcraft is one of a handful of Western
entertainment properties that has been successful in Asia.
Blizzard’s highly profitable subscription-based online model
virtually eliminates piracy issues that have traditionally hindered
Western entertainment companies in Asia and other emerging
markets around the world. The game is available in 10 languages
with an 11th, Italian, on the way.
In 2011, Blizzard launched StarCraft®II: Wings of Liberty® and
World of Warcraft: Cataclysm® in China through its partnership
with NetEase.com. Blizzard will continue to bring the game to
new emerging markets. In December of 2011, Blizzard launched a
Brazilian Portuguese localized version of World of Warcraft to the
fast-growing Brazilian market.
World of Warcraft and StarCraft II are supported by the newest
iteration of Blizzard’s unique online platform Battle.net®, which
allows players to communicate and collaborate across games while
giving the company a way to interact with and support its players
through direct digital sales, free trials, and value-added services.
The deep integration of Battle.net within Blizzard games enables
the development of unique, enriching services and features like the
upcoming Diablo® III’s auction house, which allows players to buy
and sell in-game items using real-world currency. Battle.net also
offers player leagues, ladders and achievement systems.
Our ability to deliver superior returns to our shareholders is based
on our passion and dedication to bringing to market innovative
new entertainment experiences that can create category-defining
franchises. As we look at 2012 and beyond, we have an incredibly
strong portfolio of games in development. In addition to expanding
Activision Publishing’s Call of Duty and Skylanders franchises, we
also expect to deliver Bungie’s next big action game universe to
consumers. Additionally, Blizzard Entertainment is hard at work
on several new projects including Diablo III, World of Warcraft:
Mists of Pandaria™, StarCraft II: Heart of the Swarm™ and an
all-new MMORPG.
We are as excited about our future now as we were twenty one
years ago when we acquired control of the company. Today we
may be more experienced, more mature and more capable of
managing the volatility of our business, but we have the same
excitement and enthusiasm that is a prerequisite for success in
businesses like ours. While it may be more challenging to achieve
financial performance as impressive as we have in the past, there
are many positive trends that should enable us to continue
delivering long-term growth to our shareholders, and we will
continue to pursue these opportunities thoughtfully, aggressively,
and responsibly, just as we have for over twenty years.
As outstanding as last year was, and the past has been, we believe
the future has never been brighter. At a recent employee leadership
offsite we hosted, I asked John Lasseter, the founder of Pixar, what
he will miss most about Steve Jobs. Without missing a beat
and with powerful emotion, he said, “No one raised the bar of
excellence more than Steve. I will miss that most.”
That unyielding commitment to excellence that Steve Jobs uniquely
displayed drives us at Activision Blizzard.
We remain focused on driving innovation, imagination and finding
new ways to serve our players, while rewarding our employees and
shareholders, as we have for more than 20 years.
With appreciation,
Bobby Kotick
President and Chief Executive Officer,
Activision Blizzard
Brian Kelly
Co-Chairman of the Board,
Activision Blizzard
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2011 A NNUA L R EPORT