Activision Projects Nearly $1 Billion Drop in Sales for 2013

Activision‘s fourth quarter earnings reports indicate that the company brought in $2.6 billion in revenue during the final months of 2012, bringing the year’s total to $4.987 billion. However, Activision is projecting 2013′s earnings to be substantially lower — $4.175 billion.

CEO Bobby Kotick pointed to the transition between the current and next generation of consoles as one reason for the lower estimates, as well as competition from new business models. He said:

“We recognized that 2013 is a transition year, as we enter the ninth year of the current generation of console video game systems. We encounter new threats from unproven business models, and we compete against new category entrants. We aren’t immune to unfavorable market dynamics, but we have navigated through the transitions many times before, and we are well prepared to do so again.”

CFO Dennis Durkin explained 2013′s expected major revenue sources:

“For the full year 2012, Diablo III contributed more than $0.20 of EPS on a standalone basis. This year, our outlook for Blizzard includes the release of the StarCraft II expansion pack, Heart of the Swarm, in March and one additional title. For Call of Duty, consistent with our past practices, we are planning for the mainline release in Q4 to be down versus 2012.”

Diablo 3′s success in sales revenue is not expected to be repeated with Heart of the Swarm, and Call of Duty sales have continued to decrease over the past two years.

Do you think 2012 is the year Activision peaked?


via GI International

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1 Comment on Activision Projects Nearly $1 Billion Drop in Sales for 2013

Patches

On February 11, 2013 at 9:52 am

Yeah, pound yourself in the chest for so many Diablo 3 sales… But don’t forget the Damocles Sword over your head because this game was far below what players expected (dumbed down Diablo game, DRM, RMAH economy fiasco, non-stop Nerf-a-thon, etc…)…