Activision 2011 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2011 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

Deferred revenues by platform for the years ended December 31, 2011, 2010, and 2009 was as follows (amounts
in millions):
Years Ended December 31,
2011 2010 2009
(Increase)
Decrease
2011 v 2010
(Increase)
Decrease
2010 v 2009
Deferred revenues by platform:
Online subscriptions ................................................................................. $202 $(191) $93 $393 $(284)
PC and other ............................................................................................. 75 (81) (49) 156 (32)
Console
Sony PlayStation 3 .............................................................................. (36) (77) (259) 41 182
Microsoft Xbox 360 ............................................................................ (43) (15) (284) (28) 269
Nintendo Wii ....................................................................................... 66 16 250 14
Total console ............................................................................................ (13) (76) (541) 63 465
Nintendo Dual Screen ......................................................................... 2 (8) — 10 (8)
Other .............................................................................................................. —— 1 — (1)
Total impact on consolidated net revenues ................................................... $266 $(356) $(496) $622 $140
Net revenues from online subscriptions increased in 2011 as compared to 2010, primarily driven by the recognition of
deferred revenues from the release of World of Warcraft: Cataclysm in December 2010 and from the sales of World of
Warcraft’s value-added services, partially offset by the unfavorable impact of World of Warcraft’s declining subscriber base.
Net revenues from PC and other increased in 2011 as compared to 2010, primarily due to the launch of Skylanders Spyro’s
Adventure, particularly on the sale of toys that are used with the video game, and continued success of Call of Duty franchise
titles. The increase was partially offset by lower revenues from music and causal titles and no major release for PC and other
platform in 2011 as compared to 2010, when StarCraft II: Wings of Liberty was released. Net revenues from Sony PlayStation 3
and Microsoft Xbox 360 increased in 2011 as compared to 2010, primarily due to the launch of Skylanders Spyro’s Adventure,
the continued success of the Call of Duty franchise, and downloadable content packs associated with Call of Duty: Black Ops as
compared to the downloadable content packs associated with Call of Duty: Modern Warfare 2. The increase was partially offset
by the strong consumer demand at launch in November 2011 for Call of Duty: Modern Warfare 3, which resulted in additional
deferral of revenues. Net revenues from the Nintendo Wii and handheld systems decreased due to the release of fewer key titles
than in 2010, and lower catalogue sales of games in the music and casual games genres in 2011 as compared to 2010.
Net revenues from online subscriptions decreased slightly in 2010 as compared to 2009, primarily as a result of lower
deferred and boxed revenue recognized in 2010 due to the timing of expansion pack releases by Blizzard. While the World of
Warcraft: Wrath of the Lich King expansion pack launched in the fourth quarter of 2008 resulted in significant deferred revenues
that were recognized in 2009, the World of Warcraft: Cataclysm expansion pack launched in the fourth quarter of 2010 resulted
in a lower percentage of deferred revenue recognized in 2010, with the majority of deferred revenues to be recognized in 2011.
This decrease in revenue was partially offset by higher revenues from sales of World of Warcraft’s value-added services. Net
revenues from PC and other platform increased in 2010 as compared to 2009, primarily as a result of the release of StarCraft II:
Wings of Liberty. Net revenues from Sony PlayStation 3 and Microsoft Xbox 360 increased in 2010 as compared to 2009,
primarily as a result of the success of the Call of Duty franchise, in particular the strength of Call of Duty: Modern Warfare 2
and its associated map packs in downloadable content digital formats, and the strong consumer demand for Call of Duty: Black
Ops. Sony PlayStation 2 platform revenues continued to decline due to fewer titles published on this platform given the aging
lifecycle of the Sony PlayStation 2 platform as consumers are now almost fully transitioned to the current-generation platforms.
Net revenues from Nintendo Wii decreased in 2010 as compared to 2009, primarily due to the weakness in the sales in casual
and music genres. Net revenues from handheld systems decreased for the same period primarily as a result of alternative
handheld devices such as Apple’s iPhone, Apple’s iPad and other mobile devices, as well as general weakness in the casual
titles.
15