Kotick: Only 30% of Activision's Profits Come from Consoles

John Funk

U.N. Owen Was Him?
Dec 20, 2005
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ciortas1 said:
Mother fuckers...

Can anyone explain (please; the rage isn't aimed at you) to me why Blizzard even sold themselves to Activision in the first place? Surely they knew what kind of money they were making with WoW (huge, huge piles of cash) so what's up with all that crap about financial backing? All they're doing now is alienating people that were throwing them up to the top spot (hasn't Blizz grown like 10 times in a few years before the merger?) and crap just to please some asshole in a black suit. For fuck's sake, this does not make me anything but angry. Activision is basically only getting bigger because they bought Blizzard. <----- bunch of thoughts just spilled out in the few first seconds after reading the article

WHY BLIZZ, WHY DID YOU DO THIS?!

Edit: Upon the smallest bit of thinking, it becomes ironic. Blizz said in some article or whatever that they're doing this to have some financial backing (which, as was painfully obvious, was not needed because of WoW in the first place), they're the ones financially backing the other company involved in the merger.

Dorkmaster Flek said:
Wow. No, literally. WoW. :) That basically means World of Warcraft accounts for 70% of their profits. It's a damn shame to see a company like Blizzard literally providing most of the profits for a company like Activision. My hatred of this man knows no bounds.
You and I think alike. It's a god damn shame.

Now, who's up for forcing them to split? Let's get some pitchforks and flaming sticks people, time to burn the heretics and purge the unclean.
Sartan0 said:
ciortas1 said:
Can anyone explain to me why Blizzard even sold themselves to Activision in the first place?
They did not Vendi did. They sold themselves to Vendi years ago. Vendi sold Blizzard off to Activision to pay their debts due to the credit crunch and recession we just went through.
Bzzt, wrong.

Blizzard has been owned by Vivendi for YEARS. Vivendi bought a majority share in Activision, and merged its Vivendi Games division with Activision, calling the new holding corporation "Activision-Blizzard."

Blizzard is, ironically, a separate entity from ActiBlizz, but since its profits go up into the Vivendi Games coffers, they go into ActiBlizz's as well.

Vivendi is the parent company.
 

Sartan0

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Apr 5, 2010
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Yep, I just researched that and was about to come back and say I must have misunderstood the deal from 3 years ago.
 

ItsAPaul

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Mar 4, 2009
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Apparently be became the CEO of Activision Blizzard instead of just Activision. Wait, he didn't? Then the WoW theory is way off.
 

poiuppx

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Nov 17, 2009
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So, yes. He admitted that for all his bluster and for all the products of variable quality and all his idiotic statements and actions... Blizzard is the sole reason he has any power in the world. I swear, if they ever manage to lose Blizzard, Activision'll crash within four months. Mark my words.
 
Jun 11, 2008
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pneuma08 said:
Glademaster said:
pneuma08 said:
Aslong as the game is viable what company does not want people playing their games. That aside just look at Quake and Doom those are still being played. Things that are subscription based or indirect transaction based games like WoW and TF2 their respective devs want them to keep being played. It just means more money for them to go into other things. If a game has become unsupported it means the community has moved on or the game was a failure simple as really. If a game is still being played for more than nostalgia and has an active community it will always be there and exist which is good for the company to make money. For example all the Quake things is free advertising of the its existance if they ever try to reboot the franchise.
I suppose you're right when thinking of the longer term. Nonetheless it's the community that supports legacy games like Deus Ex, not the devs/publishers.

WoW does run on a dedicated server like system as does every MMO. As even with WoW you can make your own private server for it. If Activision thought they could get more money out of it they would do away with this system. That is what I was mainly saying and the fact that they try fuck over whoever they can. So while it is not a dedicated server system in the same sense as TF2 they are still a form of dedicated servers as you can make your own which is what a dedicated server is. MW2 does not run on Activision run servers. MW2 runs on peer to peer which is why when the person who has become the server drops out you have to wait for a new person be selected.
But WoW "private servers" are completely third-party hacks to the system that Activision/Blizzard have set up; and, indeed, they are taking steps to limit these via cease-and-desist letters. At the very least they're not part of A/B's model (and I also sincerely doubt that any significant number of people go out and buy WoW specifically to play on private servers).

Also: MW2 on PC is completely peer-to-peer? That's horrible. I thought they were reaching for a more console-like solution which is adequate if disappointing. It's worse than I thought.
While I know the private servers are hacks they are still there and do fill the role of technically being true dedicated servers. Yes the PC is completely peer to peer unless I missed the point of the boycott I signed up for after reading about it. The whole situation is completely disgraceful especially since console games can have dedicated servers and work brilliantly with them eg. Resistance. They do hide the peer to peer thing by instead of telling you your ping in a number they do it with colours from green to red well as far as I know from the Pip and Slack podcasts.
 

Pilkingtube

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Mar 24, 2010
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I don't understand why he can claim Blizzard's profits as his own? As far as I recall it was Vivendi/Blizzard who bought Activision, not the other way around. Surely his profits should be those of Activision, not those of his parent company?

Put it this way, if I was a small company in a large chain and I was making incredible losses but the rest of the company was doing well, it would be wrong of me to claim the whole chain's profits as my own, it doesn't show how well my company is performing.

..That or the other 70% of his profits come from his legal department after he sues everybody.
 

crobulator

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Dec 27, 2009
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Jandau said:
So, what was that about PC gaming dieing...
exactly my thoughts if the biggest money maker in the gaming world activision who have pretty much said screw you to pc gamers are getting propped up by a pc exclusive developer excuse me i just need to laugh my ass off
 

tkioz

Fussy Fiddler
May 7, 2009
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pneuma08 said:
tkioz said:
Everyone is assuming it's PC games, doesn't Activision publish hand held games? Last I heard they were a huge market segment. Oh I don't doubt WoW makes crazy shittons of money.
"Consoles" includes handhelds.

Edit: Unless you're referring to something like iPhone titles.
I defining handhelds are iPhones, Nintendo DS, PSP, etc. I don't think they fall under "consoles" in anyone's definition.
 

jamesworkshop

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Sep 3, 2008
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Pilkingtube said:
I don't understand why he can claim Blizzard's profits as his own? As far as I recall it was Vivendi/Blizzard who bought Activision, not the other way around. Surely his profits should be those of Activision, not those of his parent company?

Put it this way, if I was a small company in a large chain and I was making incredible losses but the rest of the company was doing well, it would be wrong of me to claim the whole chain's profits as my own, it doesn't show how well my company is performing.

..That or the other 70% of his profits come from his legal department after he sues everybody.

Activision Blizzard was formed by combining Activision, one of the world's leading independent publishers of interactive entertainment, and Vivendi Games, Vivendi's interactive entertainment business, which includes Blizzard Entertainment's® World of Warcraft®, the world's #1 subscription-based massively multiplayer online role-playing game.

Activision Blizzard will continue to operate as a public company traded on Nasdaq under the ticker ATVI.

Thats why
 

Pilkingtube

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Mar 24, 2010
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jamesworkshop said:
Pilkingtube said:
I don't understand why he can claim Blizzard's profits as his own? As far as I recall it was Vivendi/Blizzard who bought Activision, not the other way around. Surely his profits should be those of Activision, not those of his parent company?

Put it this way, if I was a small company in a large chain and I was making incredible losses but the rest of the company was doing well, it would be wrong of me to claim the whole chain's profits as my own, it doesn't show how well my company is performing.

..That or the other 70% of his profits come from his legal department after he sues everybody.

Activision Blizzard was formed by combining Activision, one of the world's leading independent publishers of interactive entertainment, and Vivendi Games, Vivendi's interactive entertainment business, which includes Blizzard Entertainment's® World of Warcraft®, the world's #1 subscription-based massively multiplayer online role-playing game.

Activision Blizzard will continue to operate as a public company traded on Nasdaq under the ticker ATVI.

Thats why
Wow that sounded almost like Marketing at the start, until I looked at the press release, which it turns out you copy and pasted from, so it technically is marketing, and I conceed that yes, it is indeed one subsidiary company now. With an almost even split on the board of directors.
 

Jandau

Smug Platypus
Dec 19, 2008
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crobulator said:
Jandau said:
So, what was that about PC gaming dieing...
exactly my thoughts if the biggest money maker in the gaming world activision who have pretty much said screw you to pc gamers are getting propped up by a pc exclusive developer excuse me i just need to laugh my ass off
I also find it mildly curious that this pretty much coincided with Microsoft's statement that they want to get back into PC gaming. It seems that major players have started to figure out that the grass isn't THAT green in the console market...
 

Atmos Duality

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Mar 3, 2010
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Jandau said:
So, what was that about PC gaming dieing...
It's mostly (if not all) WoW.
So yeah. PC gaming is dying unless you're into WoW.

Kind of sad to think about really.
 

pneuma08

Gaming Connoisseur
Sep 10, 2008
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tkioz said:
pneuma08 said:
tkioz said:
Everyone is assuming it's PC games, doesn't Activision publish hand held games? Last I heard they were a huge market segment. Oh I don't doubt WoW makes crazy shittons of money.
"Consoles" includes handhelds.

Edit: Unless you're referring to something like iPhone titles.
I defining handhelds are iPhones, Nintendo DS, PSP, etc. I don't think they fall under "consoles" in anyone's definition.
Apparently it falls under NPD's definition of "consoles", which spawned Mr. Kotick's remarks in the first place. I can only assume they're using the same definition.

Edit: "Handhelds" is short for "handheld video game consoles" where "video game consoles" or simply "consoles" refers to devices primarily designed for playing video games, as opposed to other devices built for another primary purpose (such as the iPhone, which is primarily a smart phone) or no specific purpose (such as a personal computer).
 

pneuma08

Gaming Connoisseur
Sep 10, 2008
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Glademaster said:
While I know the private servers are hacks they are still there and do fill the role of technically being true dedicated servers. Yes the PC is completely peer to peer unless I missed the point of the boycott I signed up for after reading about it. The whole situation is completely disgraceful especially since console games can have dedicated servers and work brilliantly with them eg. Resistance. They do hide the peer to peer thing by instead of telling you your ping in a number they do it with colours from green to red well as far as I know from the Pip and Slack podcasts.
If you count third party hacks, then MW2 does indeed have dedicated servers.