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Only 30 Percent of Activision Profits Come from Console Games

CEO Bobby Kotick reveals just how big of an impact World of Warcraft subscriptions have on Activision's bottom line.
By Dustin Quillen, 06/22/2010



Speaking with The Wall Street Journal, Activision Blizzard CEO Bobby Kotick shared some fascinating info on the breakdown of profit between the various gaming markets. The verdict: Only about 30 percent of the publisher's profit comes from console releases. When questioned by the Journal about slow sales of disc-based games, Kotick replied, "I care a lot less. It used to be, I would religiously look at weekly retail sell-through data, but it's a very small part of our business now."

The Activision executive continued, "Today, probably 70 percent of our operating profit comes from non-console-based video games. So, while you might see a month-to-month change or volatility against expectations, that doesn't really get us too concerned."

Shocking as that figure may seem, it should come as little surprise to the 11.5 million World of Warcraft subscribers out there. Sure, franchises like Call of Duty and Guitar Hero are huge on consoles, but they don't rake in $15 a month from millions upon millions of players.

Mobile phone games and other PC releases also contributed to Kotick's "non-console-based" category, according to Activision Blizzard VP of corporate communications Maryanne Lataif. "Five years ago, DLC and subscription services weren't as popular [as they are today,] and as a result monthly volatility at retail is now less impactful than in the past," she told Gamasutra.

Source: 1up
 

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I usually let you guys comment first on articles that I post but this guy irritates me, It's amazing how he gives the attitude that profits from console based games are irrelevant to him but yet he's trying to find new ways to nickle and dime console gamers every chance he gets. He has said not to long ago if he had the chance he would turn COD into a subscription to play online. If I forgot to mention it this guy really irritates me.
 

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Ting is now, they are probably totally dependant on those subscriptions. What happens if the bubble bursts.
 
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