Blizzard 2015 Annual Report Download - page 34

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16
The increase / (decrease) in deferred revenues recognized by platform for years ended December 31, 2015, 2014, and 2013 was as
follows (amounts in millions):
For the Years Ended December 31,
2015
2014
2013
Increase/
(Decrease)
2015 v 2014
Increase/
(Decrease)
2014 v 2013
Increase/(decrease) in deferred revenues recognized by platform:
Online(1) ...........................................................................................
$ 138
$ (168)
$ 107
$ 306
$ (275)
PC ......................................................................................................
(82)
(41)
22
(41)
(63)
Next-generation (PS4, Xbox One, Wii U) ........................................
(252)
(477)
(213)
225
(264)
Prior-generation (PS3, Xbox 360, Wii) .............................................
274
295
324
(21)
(29)
Total console .....................................................................................
22
(182)
111
204
(293)
Mobile and ancillary(2) .....................................................................
(35)
(14)
1
(21)
(15)
Total impact on consolidated net revenues ...........................................
$ 43
$ (405)
$ 241
$ 448
$ (646)
(1) Revenues from online consists of revenues from all World of Warcraft products, including subscriptions, boxed products,
expansion packs, licensing royalties, and value-added services.
(2) Revenues from mobile and ancillary includes revenues from handheld, mobile and tablet devices, as well as non-platform
specific game-related revenues such as standalone sales of toys and accessories products from our Skylanders franchise and
other physical merchandise and accessories.
(3) Net revenues from Other include revenues from our Media Networks and Studios businesses, along with revenues that were
historically shown as “Distribution.”
(4) The percentages of total are presented as calculated. Therefore the sum of these percentages, as presented, may differ due to
the impact of rounding.
Net revenues from online decreased slightly in 2015, as compared to 2014, primarily due to lower World of Warcraft subscriber
levels. This was partially offset by revenue recognized from the expansion World of Warcraft: Warlords of Draenor, which was
released in November 2014, and from associated value-added services including a paid character boost.
Net revenues from online decreased in 2014, as compared to 2013, primarily due to the deferral of revenues from World of Warcraft:
Warlords of Draenor, as compared to the recognition of revenues from World of Warcraft: Mists of Pandaria, which was released in
September 2012, and lower subscription revenues from World of Warcraft. The decrease was partially offset by the strong
performance of value-added services revenues driven by the launch of the World of Warcraft paid character boost.
Net revenues from PC increased in 2015, as compared to 2014, primarily due to higher revenues recognized from Hearthstone:
Heroes of Warcraft and revenues recognized from Heroes of the Storm. This was partially offset by lower revenues recognized in
2015 from Diablo III: Reaper of Souls, due to the title releasing in March 2014 and no comparable title release in 2015.
Net revenues from PC increased in 2014, as compared to 2013, primarily due to revenues from Hearthstone: Heroes of Warcraft,
which had no comparable title in 2013, and higher revenues from Diablo III: Reaper of Souls, which was released in March 2014, as
compared to revenues from the release of StarCraft II: Heart of the Swarm, which was released in March 2013.
Net revenues from next-generation consoles increased in 2015, as compared to 2014, and increased in 2014, as compared to 2013, in
each case primarily due to increased consumer adoption of the PS4 and Xbox One and an increase in the number of titles released for
the next-generation console platforms. Since the introduction of the PS4 and Xbox One in the fourth quarter of 2013, we have released
the following titles, among others, on next-generation consoles: Call of Duty: Ghosts and Skylanders SWAP Force™ in the fourth
quarter of 2013; The Amazing Spider-Man™ 2 and Transformers™: Rise of the Dark Spark in the second quarter of 2014; Diablo III:
Reaper of Souls—Ultimate Evil Edition and Destiny in the third quarter of 2014, and Call of Duty: Advanced Warfare and Skylanders
Trap Team in the fourth quarter of 2014. In 2015, we have released multiple expansions or map packs for Destiny and Call of Duty:
Advanced Warfare on the next-generation consoles along with major new titles including Call of Duty: Black Ops III, Skylanders
SuperChargers, and Guitar Hero Live.
Net revenues from prior-generation consoles decreased in 2015, as compared to 2014, primarily due to lower revenues from the Call
of Duty and Skylanders franchises and from the transition of players from prior-generation to next-generation platforms. The
decreases were partially offset by higher revenues recognized from the Destiny franchise and revenues from Guitar Hero Live.
10-K Activision_Master_032416_PrinterMarksAdded.pdf 16 3/24/16 11:00 PM