Blizzard 2015 Annual Report Download - page 31

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13
The decrease in non-GAAP net revenues from retail channels for 2015, as compared to 2014, was primarily due to lower revenues
from Destiny, which launched in September 2014 with no comparable full-game release in the current year, from Skylanders
SuperChargers, which was released in the current year, as compared to Skylanders Trap Team, the comparable prior-year title, and
from the Diablo franchise due to timing of title releases. This was partially offset by revenues from Guitar Hero Live, which was
released in the fourth quarter of 2015, with no comparable release in the prior-year, and revenues from Call of Duty: Black Ops III,
which was released in the fourth quarter of 2015, as compared to Call of Duty: Advanced Warfare, which was released in the fourth
quarter of 2014.
The decrease in non-GAAP net revenues from retail channels for 2014, as compared to 2013, was primarily due to lower revenues
from the Call of Duty and Skylanders franchises. The decreases were partially offset by revenues from Destiny, which was released in
September 2014, and revenues from Diablo III: Reaper of Souls, which was released in March 2014 on the PC and Diablo III: Reaper
of Souls—Ultimate Evil Edition, which was released in August 2014 on certain consoles, as compared to revenues from the September
2013 release of Diablo III on the PS3 and Xbox 360.
Digital Channel Net Revenues
The increase in GAAP net revenues from digital online channels for 2015, as compared to 2014, was primarily due to: higher revenues
recognized from the Destiny franchise; higher revenues recognized from Hearthstone: Heroes of Warcraft; higher revenues
recognized from Call of Duty: Advanced Warfare and its digital content released during the current period, as compared to Call of
Duty: Ghosts and its digital content released during the prior period, including revenues recognized from Call of Duty: Advanced
Warfare’s new digital content known as “supply drops;” and revenues recognized from Heroes of the Storm, which was released in
June 2015 with no comparable release during the prior periods. The increases were partially offset by lower revenues from the Diablo
franchise due to the timing of title releases.
The increase in GAAP net revenues from digital online channels for 2014, as compared to 2013, was primarily due to higher revenues
from Hearthstone: Heroes of Warcraft, value-added services revenues from the launch of the World of Warcraft paid character boost,
revenues from World of Warcraft: Warlords of Draenor, revenues from Diablo III: Reaper of Souls, which was released in March
2014 on the PC, and Diablo III: Reaper of Souls—Ultimate Evil Edition, which was released in August 2014 on certain consoles, and
the release of Destiny and its first expansion pack, The Dark Below, and higher digital download revenues from Call of Duty:
Advanced Warfare. The increases were partially offset by lower revenues recognized from StarCraft II: Heart of the Swarm, which
was released in March 2013, lower revenues recognized from World of Warcraft: Mists of Pandaria®, which was released in
September 2012, and lower downloadable content revenues from the Call of Duty franchise.
The increase in non-GAAP net revenues from digital online channels for 2015, as compared to 2014, was primarily due to: revenues
from Hearthstone: Heroes of Warcraft; revenues from Destiny and its associated expansion packs, including The Taken King which
was released in September 2015; higher revenues from the Call of Duty franchise, specifically from Call of Duty: Black Ops III,
which was released in the fourth quarter of 2015, as compared to Call of Duty: Advanced Warfare, which was released in the fourth
quarter of 2014, and from the strong digital content performance, including expansion packs and supply drops, of Call of Duty:
Advanced Warfare; and revenues from Heroes of the Storm, which was released in June 2015 with no comparable release during the
prior periods. These increases were partially offset by lower revenues from World of Warcraft, primarily due to a decline in the
subscriber base and the launch of World of Warcraft: Warlords of Draenor in November 2014 with no comparable release in the
current year, and lower revenues recognized from the Diablo franchise due to the timing of title releases.
The increase in non-GAAP net revenues from digital online channels for 2014, as compared to 2013, was primarily due to revenues
from Hearthstone: Heroes of Warcraft, value-added services revenues from the launch of the World of Warcraft: Warlords of
Draenor paid character boost, revenues from World of Warcraft: Warlords of Draenor, revenues from Diablo III: Reaper of Souls,
which was released in March 2014 on the PC, and Diablo III: Reaper of Souls—Ultimate Evil Edition, which was released in August
2014 on certain consoles, revenues from the release of Destiny and its first expansion pack, The Dark Below, and higher digital
downloads of Call of Duty: Advanced Warfare. The increases were partially offset by lower downloadable content revenues from the
Call of Duty franchise.
10-K Activision_Master_032416_PrinterMarksAdded.pdf 13 3/24/16 11:00 PM