(adsbygoogle = window.adsbygoogle || []).push({}); I continue to see so many threads complaining about MW2 and game developers. I made a post in another thread, but thought this might prove to have it's own topic of discussion. I know most of the people on this board are younger individuals and don't have a lot of real world business experience so I thought I'd share my experience with you. Hopefully you'll understand the requests that gamers make and the impact it would have on the company to respond/resolve the requests.

Activision owns IW & Treyarch as well as about 85 other companies.

Business profits & EPS:
Businesses look for profits. Profits are gross revenues (income) minus expenses. ATVI is a public company so any person can own a part of the company. ATVI has to look out for share holders and turn a profit each quarter (quarterly earnings per share or EPS). If ATVI spends too much money on a project then it reduces the amount of profit that project makes. This includes labor, dedicated servers, software, marketing etc.

Console Wars:

Everyone wants to believe their console is superior to another. The fact is that ATVI supports XBOX over PS3. The reason for that is that XBOX accounts for 38% of the revenues (2009 figures) versus PS3 accounting for 26%. The Wii accounts for 26% and PC and PS2 come in on distant lasts. PC is 7% of console revenue and PS2 is about 8%.

More revenue is generated by XBOX so more of the focus is towards that demographic. This doesn't discount the other two main consoles. PS3 net revenues (profit) have increased at ATVI from 2008 to 2009 approximately 26%. Now lets compare XBOX 2008 & 2009 net revenues... XBOX had a 54% increase in revenues. You can see why ATVI would spend more effort and energy building a product for a larger consumer base which generates double the profit. Hopefully this makes sense and you're following.

Conclusion:

A company is looking to turn a profit to stay in business. They will do just enough, but not too much to make their products have a value in the eye of the consumer. If you want to respond about the complaints of the game then stop purchasing the game. Don't purchase any DLC and stop buying ATVI's products. If the product (MW2) has some sort of value to you then purchase it. In the end stop complaining about the issues we all face with the game. Nothing is going to change the fact they're there... That is until the revenues come down forcing ATVI to re-evaluate the value the product has to the consumer. You're not going to see dedicated servers for MW2. The cost is too great compared to the return on investment.

Let me know if you have questions. I tried to keep this as simple and brief as possible. I can launch into a ton of segments on how a public company is run and analysis of that, but I'll save that for the big nerds who are interested.

Linky Dinks:
ATVI's investor relations:
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google finance link to ATVI stock:
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NASDAQ link for SEC filings:
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yes. There is another topic on the front page here on people complaining that Treyarch should be making the cod series, PS3 is getting screwed by IW etc. I figured it's time for people to start learning about this stuff.

Education is bliss.

now im a thick mother****er but i understood everyword of it well im not thick but everyone else does haha but nice post i know how this worked as i got an A in business management lol but anyway good post

thanks. I appreciate the kind words. I'll post again once the next 10Q is posted.

Interesting write up OP. It is always nice to see different topics, especially one such as this which deals with the realities of business. Also +rep for writing it an manner which is understandable to everyone as well as being succinct.