Activision 2011 Annual Report Download - page 30

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successful launch of World of Warcraft: Wrath of the Lich King in China in August 2010. The increase in consolidated net
revenues for North America was partially offset by the impact of fewer titles released in 2010 and the weaker sales of games in
the music and casual genres. Consolidated net revenues in Europe decreased in 2010 as compared to 2009, primarily as a result
of unfavorable foreign exchange effects and the decrease in sales of games in the music and casual genres. These decreases were
partially offset by the strong performance of the Call of Duty franchise in Europe, the release of World of Warcraft: Cataclysm
and StarCraft II and continued growth in World of Warcraft’s value-added services.
The greater success of Call of Duty: Black Ops sales at its initial launch compared to Call of Duty: Modern Warfare 2
sales at its 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.
Foreign Exchange Impact
Changes in foreign exchange rates had a positive impact of approximately $100 million and a negative impact of
$54 million on Activision Blizzard’s net revenues in 2011 and 2010, respectively. The change is primarily due to the year-over-
year movements of the British pound, euro and Australian dollar average rates relative to the U.S. dollar.
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, 2011, 2010, and 2009 (amounts in millions):
Year
Ended
December 31,
2011
% of
total
consolidated
net revs.
Year
Ended
December 31,
2010
% of
total
consolidated
net revs.
Year
Ended
December 31,
2009
% of
total
consolidated
net revs.
Increase/
(decrease)
2011 v
2010
Increase/
(decrease)
2010 v
2009
Platform net revenues:
Online subscriptions* .......................
.
$1,357 29% $1,230 28% $1,248 29% $127 $(18)
PC and other .....................................
.
374 8 325 7 164 4 49 161
Console
Sony PlayStation 3 ......................
.
935 20 854 19 584 14 81 270
Sony PlayStation 2 ......................
.
13 — 35 1 174 4 (22) (139)
Microsoft Xbox 360 ....................
.
1,140 24 1,033 23 857 19 107 176
Nintendo Wii ...............................
.
351 7408 9584 14 (57) (176)
Total console ....................................
.
2,439 51 2,330 52 2,199 51 109 131
Handheld ..........................................
.
167 3184 4244 6 (17) (60)
Total platform net revenues ..................
.
4,337 91 4,069 91 3,855 90 268 214
Distribution .......................................
.
418 9 378 9 423 10 40 (45)
Other .................................................
.
— — — — 1 — — (1)
Total consolidated net revenues ............
.
$4,755 100% $4,447 100% $4,279 100% $308 $168
* Revenue from online subscriptions consists of revenue from all World of Warcraft products, including subscriptions,
boxed products, expansion packs, licensing royalties, and value-added services.
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