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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 - Quarter 1 2010 Updated
It's funny as everyone wants their console to be the best. The fact of the matter is the 360 commands more attention from Activision. The PS3 is catching up and quickly... I've only pulled the numbers for the consoles & console games. Not all products of ATVI. On to some numbers:
Q1 2010 ATVI revenue breakdown
Percentage of revenue breakdown across console
- 360 - 29%
- PS3 - 23%
- Wii - 11%
- PS2 - 1%
What's interesting about these numbers... The Xbox 360 has seen a 94% increase in revenues from the previous quarter last year. The PS3 had 132% increase. The Wii was 1% increase and the PS2 had a 63% decrease. You can see the PS3 sales revenues have increased faster than Xbox. I think this boils down to the PS3 slim and price decrease are resulting in more sales of that console.
Some fun facts about the quarter results of ATVI. The stimulus package on the 360 set record XBL sales selling over 1 million in the first 24 hours. Additionally the console revenue was decreased from Q1 2009 to Q1 2010 from 35% to 26%. IW is currently working on a a second DLC pack which will be released later this year. Finally ATVI signed a 10 year deal with Bungie (makers of Halo) to create content/games.
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. Interestingly enough COD7 is rumored to have dedicated servers.
If anyone has questions feel free to post here. I'll try and address them as simply as possible.
Linky Dinks
ATVI Investor Relations:
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Google Finance link to ATVI stock quote
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NASDAQ link to ATVI's reports/SEC filings
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