Activision: 2012 was the best of times

It was a far better than anticipated quarter that capped off a record year for Activision. The fourth quarter brought in $2.6 billion in revenue, when compared with analyst estimates of $2.44 billion. The business came within spitting distance of $5 billion in revenue for the year ($4.987 billion, to be precise), which is wonderful for any organization that’s not manufacturing console hardware.

The downside of this functionality: Activision is currently telling us it will not come about once again in 2013, with the organization projecting outcomes substantially reduce for this year (at $4.175 billion). Will the organization see growth once more, or was 2012 the highest point it can ever attain?

CEO Bobby Kotick praised the company’s efficiency: “We accomplished record fourth quarter and annual outcomes. And in 2012, on a non-GAAP basis, we generated about $5 billion in revenues, a 34 per cent operating margin and EPS development of 27 per cent more than the prior year. We improved our operating money flow by 41 %.” It’s incredibly impressive; Activision continues to manage its properties effectively in a horrible retail atmosphere.

Kotick also provided some other info to show Activision’s dominance. “In the US and Europe, we have been the #1 video game publisher at retail, we’re the #1 title overall, the #1 console title and the #1 Computer title.” Kotick also threw in the following: “We’re also the #1 independent Western Digital game publisher and had the #1 subscription-based MMORPG.”

Notice the exceptionally careful phrasing right here, to conveniently exclude Chinese, Korean and Japanese publishers, as well as Russia’s And becoming the #1 subscription-based MMORPG is not saying a lot, given that pretty much every other MMORPG today is free-to-play. The lily is already fairly damn impressive; there is truly no ought to add gilding.

The speedy growth of Skylanders was offered some particular attention. “Skylanders, our newest franchise, which can be both toys and video games, has life-to-date sold in excess of $100 million toys and generated revenues of around $1 billion. This week, Activision Publishing revealed the third game inside the Skylanders franchise for vacation 2013. And although you will discover new entrants in the category and challenges from slower than expected adoption on the Wii U, we remain enthusiastic about Skylanders’ future prospects.”

1st we had EA’s CEO saying the Wii U wasn’t a next-generation console, and now Activision’s CEO is calling out the Wii U for slow sales. Nintendo does not appear to become acquiring substantially love from third-party publishers within the West.


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