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Activision, Inc. — 2005 Annual Report
page 17
TH E ฀I N T R O D U C T I O N ฀O F ฀T H E ฀ N I N T E N D O ฀ D S ฀ A N D ฀ S O N Y ฀ P S P ฀ M A R K E D ฀T H E ฀B E G I N N I N G ฀O F ฀A N ฀E X C I T I N G ฀N E W ฀E R A ฀F O R ฀V I D E O ฀G A M E S . ฀
MI C R O S O F T ’S฀ X B O X 3 6 0 , ฀ S O N Y ’S฀ P L A Y ST A T I O N ฀ 3 ฀ A N D ฀ N I N T E N D O ’S฀ R E V O L U T I O N ฀W I L L ฀U S H E R ฀I N ฀T H E ฀N E X T ฀G E N E R A T I O N ฀O F ฀C O N S O L E ฀
G A M I N G . ฀ P E R S O N A L ฀C O M P U T E R S ฀E Q U I P P E D ฀W I T H ฀ V I S T A ™,฀ M I C R O S O F T ’S฀E N H A N C E D ฀O P E R A T I N G ฀E N V I R O N M E N T , ฀ W I L L ฀O F F E R ฀
E N T I R E L Y ฀N E W ฀O P P O R T U N I T I E S ฀F O R ฀ P C ฀ G A M E S . ฀ T H E S E ฀N E W ฀S Y S T E M S ฀A L L ฀S H A R E ฀A฀C O M M O N ฀A T T R I B U T E —T H E Y ฀W I L L ฀D E L I V E R ฀
E N H A N C E D ฀P R O D U C T I O N ฀V A L U E S ฀T H A T ฀A R E ฀L I K E L Y ฀T O ฀E X P A N D ฀T H E ฀O V E R A L L ฀M A R K E T ฀F O R ฀V I D E O ฀G A M E S .
FO R ฀T H E ฀F I R S T ฀T I M E , ฀ T H E ฀ N I N T E N D O ฀ D S ฀ A N D ฀ P S P ฀ B R I N G ฀C O N S O L E -L I K E ฀P R O D U C T I O N ฀V A L U E S ฀T O ฀P O R T A B L E ฀G A M I N G ฀W H I C H ฀H A S ฀
P R E V I O U S L Y ฀A P P E A L E D ฀T O ฀ 6 – 1 1 ฀ Y E A R ฀O L D ฀C O N S U M E R S . ฀ T H E S E ฀N E W ฀D E V I C E S ฀A R E ฀A T T R A C T I N G ฀B O T H ฀T H E ฀T R A D I T I O N A L ฀ G A M E ฀
BO Y ฀A U D I E N C E , ฀ A N D ฀O L D E R ฀G A M E R S ฀A G E S ฀ 1 2 – 2 5 , ฀ A N D ฀T H E Y ฀O F F E R ฀A฀M O R E ฀A T T R A C T I V E ฀B U S I N E S S ฀M O D E L ฀T H A N ฀ G A M E ฀ B O Y , ฀
W H I C H ฀S H O U L D ฀C O N T R I B U T E ฀T O ฀O U R ฀O V E R A L L ฀M A R G I N ฀E X P A N S I O N ฀E F F O R T S .
TH E ฀N E W ฀C O N S O L E S ฀D E L I V E R ฀M E A N I N G F U L ฀E N H A N C E M E N T S ฀O V E R ฀T O D A Y ’S฀G E N E R A T I O N ฀O F ฀H A R D W A R E . ฀ T H E S E ฀S Y S T E M S ฀O F F E R ฀
S U P E R -C H A R G E D ฀G R A P H I C S , ฀ H I G H -D E F I N I T I O N ฀R E S O L U T I O N , ฀ T H E A T E R -L I K E ฀S O U N D ฀A N D ฀M O R E ฀M E M O R Y ฀C A P A C I T Y . ฀ C O U P L E D ฀W I T H ฀
M U L T I P L A Y E R ฀G A M I N G ฀O V E R ฀T H E ฀ I N T E R N E T ฀A N D ฀B R O A D E R ฀G E O G R A P H I C A L ฀H A R D W A R E ฀P E N E T R A T I O N , ฀ T H E S E ฀A D V A N C E S ฀S H O U L D ฀
C R E A T E ฀T H E ฀L A R G E S T ฀A U D I E N C E S ฀F O R ฀G A M E S ฀I N ฀O U R ฀I N D U S T R Y ’S฀H I S T O R Y . ฀
AN D ฀ A C T I V I S I O N ฀I S ฀R E A D Y ฀T O ฀L E V E R A G E ฀T H E S E ฀N E W ฀O P P O R T U N I T I E S ! ฀ O V E R ฀T H E ฀P A S T ฀Y E A R , ฀ W E ฀M A D E ฀A฀S I G N I F I C A N T ฀C O M M I T M E N T ฀
T O ฀I N C R E A S E ฀A N D ฀S T R E N G T H E N ฀O U R ฀G A M E ฀D E V E L O P M E N T ฀P E R S O N N E L ฀A N D ฀R E S O U R C E S , ฀ A N D ฀W E ฀W I L L ฀S U P P O R T ฀A L L ฀O F ฀T H E ฀N E W ฀
S Y S T E M S ฀W I T H ฀G A M E S ฀B A S E D ฀O N ฀T H E ฀P O P U L A R ฀F R A N C H I S E S ฀W E ฀C O N T R O L .
Preparing for new opportunities in video games
operating margin 13.1%
11. 6 %
11. 0 %
10. 2%
6.4%
2 0 0 4
2 0 0 3
2 0 0 2
2 0 01
2005