Blizzard 2015 Annual Report Download - page 33

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15
Deferred Revenues Recognized
In all regions, the increase in deferred revenues recognized in 2015, as compared to 2014, was primarily due to lower deferrals of
revenue from Destiny, from World of Warcraft, primarily associated with World of Warcraft: Warlords of Draenor and value-added
services, and from the Diablo franchise. These were partially offset by increased deferrals of revenue from the Call of Duty franchise
and deferral of revenues for StarCraft II: Legacy of the Void and Guitar Hero Live, which were released in 2015 with no comparable
prior-year releases. Additionally, in the Asia Pacific region there was an increase deferral of revenues from Hearthstone: Heroes of
Warcraft.
In all regions, the decrease in deferred revenues recognized in 2014, as compared to 2013, was primarily attributed to the higher
deferral of revenues from World of Warcraft: Warlords of Draenor, which was released in November 2014, as compared to the
recognition of revenues from World of Warcraft: Mists of Pandaria, which was released in September 2012, deferral of revenues from
Destiny and its first expansion pack The Dark Below, both of which were released in 2014, and the deferral of revenues from
Hearthstone: Heroes of Warcraft, which was also released in 2014.
Foreign Exchange Impact
Changes in foreign exchange rates had a negative impact of $373 million, a negative impact of $2 million, and a positive impact of
$33 million on Activision Blizzard’s consolidated net revenues in 2015, 2014, and 2013, respectively, as compared to the same
periods in the previous year. The changes are primarily due to changes in the value of the U.S. dollar relative to the euro and British
pound.
For the year ended December 31, 2014, given that a significant portion of the Company’s GAAP net consolidated revenues is
generated in the first half of the fiscal year due to the impact of deferrals, where the euro and British pound strengthened against the
U.S dollar as compared to the same period in 2013, the negative impact from the significant weakening of the euro and British pound
relative to U.S. dollar in the later stages of 2014 was largely offset in the Company’s consolidated net revenues for the full year 2014.
Net Revenues by Platform
The following tables detail our net revenues by platform and as a percentage of total consolidated net revenues for the years ended
December 31, 2015, 2014, and 2013 (amounts in millions):
Year
Ended
December 31,
2015
% of
total(4)
consolidated
net revenues
Year
Ended
December 31,
2014
% of
total(4)
consolidated
net revenues
Year
Ended
December 31,
2013
% of
total(4)
consolidated
net revenues
Increase/
(Decrease)
2015 v
2014
Increase/
(Decrease)
2014 v
2013
Platform net revenues:
Online(1) .......................................
$ 851
18%
$ 867
20%
$ 912
20%
$ (16)
$ (45)
PC .................................................
648
14
551
13
340
7
97
211
Next-generation (PS4, Xbox
One, Wii U) ..............................
1,492
32
720
16
92
2
772
628
Prior-generation (PS3,
Xbox 360, Wii) ........................
899 19 1,430 32 2,287 50 (531) (857)
Total Console ................................
2,391
51
2,150
49
2,379
52
241
(229)
Mobile and ancillary(2) ................
418
9
433
10
629
14
(15)
(196)
Total Activision Blizzard .............
4,308
92
4,001
91
4,260
93
307
(259)
Other(3) ........................................
356
8
407
9
323
7
(51)
84
Total consolidated net revenues ........
$ 4,664
100%
$ 4,408
100%
$ 4,583
100%
$ 256
$ (175)
10-K Activision_Master_032416_PrinterMarksAdded.pdf 15 3/24/16 11:00 PM