Activision's has issued quarterly financial results
offering a "weaker-than-expected outlook for the current quarter" thought the gaming giant has "reaffirmed its outlook for the full year." Here's word on their reporting: "The company earned $219 million, or 17 cents per share in the April-June quarter, up 12 percent from $195 million, or 15 cents per share, in the same period a year earlier. Its net revenue fell 7 percent to $967 million from $1.04 billion. On an adjusted basis that excludes special items and accounts for deferred revenue from games with online components, Activision earned $72 million, or 6 cents per share in the latest quarter. This is a penny above Wall Street's expectations. Adjusted revenue, meanwhile, fell 15 percent to $683 million from $801. This is below the $719.8 million that analysts polled by Thomson Reuters had expected." They also quote Chief Operating Officer Thomas Tippl saying "some of our new releases did not perform up to expectations," specifically citing Singularity
as one of the disappointments. The article also quotes outspoken Wedbush Morgan analyst Michael Pachter expressing concerns over the sales of StarCraft II and Activision's over-reliance on Call of Duty
and World of Warcraft
revenue. Another point of interest is the continued shift towards digital distribution: "Tippl said that for the first time revenue from online channels — that is, game downloads from the company's Battle.net site, add-on content and subscriptions — outpaced retail sales during the quarter. Though retail is again expected to pick up during the holidays when many people buy games as gifts, this shows that the industry's aggressive push into digital distribution is beginning to pay off."