Activision 2012 Annual Report Download - page 32

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14
The increase/(decrease) in deferred revenues recognized by platform for the years ended December 31, 2012, 2011, and 2010 was as
follows (amounts in millions):
Years Ended December 31,
2012
2011
2010
Increase/
(Decrease)
2012 v 2011
Increase/
(Decrease)
2011 v 2010
Increase/(decrease) in deferred revenues recognized by platform:
Online subscriptions(1) .....................................................................................
$(85)
$202
$(191)
$(287)
$393
PC and other(2) .................................................................................................
(36)
75
(81)
(111)
156
Console
Sony PlayStation 3 .....................................................................................
(30)
(36)
(77)
6
41
Microsoft Xbox 360 ...................................................................................
3
(43)
(15)
46
(28)
Nintendo Wii and Wii U ............................................................................
12
66
16
(54)
50
Total console ...................................................................................................
(15)
(13)
(76)
(2)
63
Nintendo 3DS and DS ................................................................................
5
2
(8)
3
10
Total impact on consolidated net revenues ..........................................................
$(131)
$266
$(356)
$(397)
$622
(1) Revenues from online subscriptions consists of revenue from all World of Warcraft products, including subscriptions, boxed products,
expansion packs, licensing royalties, value-added services, and revenues from Call of Duty Elite memberships.
(2) Revenues from PC and other consists of net revenues from the sale of PC boxed products, Skylanders franchise standalone toys
products, mobile sales and other physical merchandise and accessories.
Net revenues from online subscriptions decreased in 2012 as compared to 2011, primarily as a result of lower World of Warcraft
subscription revenues, and lower Blizzard catalog sales from World of Warcraft: Cataclysm, which was released in December 2010. The decrease
was partially offset by revenues from Call of Duty Elite memberships and World of Warcraft: Mists of Pandaria. 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 significantly increased in 2012 as compared to 2011, primarily as a result of the sale of standalone
toys and accessories from the Skylanders franchise (both from the launch of Skylanders Giants in the fourth quarter of 2012 and Skylanders
Spyro’s Adventure, which was launched in the fourth quarter of 2011), and from sales of Diablo III. The increase was partially offset by the
decrease in revenues from Starcraft II: Wings of Liberty, which was released in July 2010. Net revenues from PC and other increased in 2011 as
compared to 2010, primarily due to the sale of standalone toys and accessories for Skylanders Spyro’s Adventure, and the success of the 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 in
2011 as compared to 2010, when StarCraft II: Wings of Liberty was released.
Net revenues from PS3 and Xbox 360 decreased in 2012 as compared to 2011, primarily due to lower revenues from Call of Duty
downloadable content packs and catalog sales, partially offset by sales from the Skylanders franchise. Net revenues from PS3 and Xbox 360
increased in 2011 as compared to 2010, primarily due to the launch of Skylanders Spyro’s Adventure, the success of the Call of Duty franchise,
and downloadable content packs for Call of Duty: Black Ops as compared to the downloadable content packs for 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 Nintendo Wii and Wii U decreased in 2012 as compared to 2011, primarily due to overall weaker catalog sales and
fewer comparable releases, partially offset by additional revenues from titles associated with the launch of the Wii U. Net revenues from the
Nintendo Wii and handheld systems decreased in 2011 as compared to 2010 due to the release of fewer key titles than in 2010, and lower catalog
sales of games in the music and casual games genres.
The deferred revenues recognized for online subscriptions decreased in 2012 as compared to 2011, primarily due to revenues deferred
from World of Warcraft: Mists of Pandaria, which launched on September 25, 2012, and lower revenues recognized from World of Warcraft:
Cataclysm, which was released in December 2010, and was partially offset by additional revenues recognized from Call of Duty Elite
memberships in 2012. The deferred revenues recognized for online subscriptions increased in 2011 as compared to 2010, primarily driven by the