Activision-Blizzard is a unique kind of game company. They don’t actually release that many games each year, opting instead to focus on a few core franchises (or “pillars”) yielding profitable games each year. While it’s a big gamble to take, it keeps on paying off. This year’s big winners? Destiny and Hearthstone.
I wish financial statements could be a bit clearer than they like to make them at these meetings. There’s a lot of talk about non-GAAP earnings instead of the GAAP earnings. GAAP stands for “generally accepted accounting principles” and ensure that creative accounting isn’t used to fiddle with the numbers. Still, even going purely by the GAAP numbers, Acti-Blizz had an awesome 2014.
Based on their latest financials, 2014 (GAAP) net revenue was $4.41 billion, down from $4.58 billion. Additionally, the company generated an operating cash flow of $1.3 billion. Most interestingly, 2014 was a record year for digital with 46% of total net revenue coming from digital sales, reaching $2.20 billion. That’s a lot of DLC and Hearthstone cards. CEO Bobby Kotick raved:
2014 was another successful year as we achieved record results and introduced new franchises with outstanding gameplay, expanded on exciting new business models and continued investing in some of the world’s most important entertainment franchises.
We delivered record earnings per share which increased more than 50 per cent from the previous year, double?digit revenue growth, and record high?margin digital revenues that represent an all?time high of 46 per cent of total revenues (all non?GAAP).
He went on to say that Activision plans to grow its stable of blockbusters to ten franchises, up from five at the start of 2014. Hmm, they already have the biggest MMO with World of Warcraft – Warlords of Drainer sold 3.3 million copies in 24 hours and the subscriber base is over 10 million again. Hearthstone has over 25 million registered players. Then there’s Destiny and COD covering the shooter fans. I’d love to see them release a new Warcraft game, or perhaps an all new RPG. Of course, this will be another big year for them what with the StarCraft II expansion coming, plus I’m sure Destiny has even more potential for this year.
I worry about them expanding their stable. It’s hard enough for them to push out a high quality game on time without the need for tons of patches or fixes. Adding to the workload might mean a watering down of quality. Then again, they could probably do well on mobile with another game considering Hearthstone’s success.
Last Updated: February 6, 2015
Blood Emperor Trevor
February 6, 2015 at 11:33
I haven’t bought any Activision or Blizzard game in over a decade now. None of them interest me.
Admiral Chief
February 6, 2015 at 11:37
Same here, I got gifted D3 and won D3 RoS, I can’t even remember any Activision ones
Guild
February 6, 2015 at 11:39
But tell me you enjoy D3? It is a pretty cool game. I’m enjoying it on the PS4 and it reminds me I need to get back into it.
Admiral Chief
February 6, 2015 at 11:41
I did enjoy it, what I did NOT enjoy is having to be ONLINE to play it, and getting lag in an SINGLE PLAYER game.
DOES.NOT.COMPUTE
Guild
February 6, 2015 at 11:47
Totally agree, single player lag is BS. Very much a case of WTF?
What line do you have?
Admiral Chief
February 6, 2015 at 11:48
2mb ADSL, you?
Guild
February 6, 2015 at 11:55
6Mb ADSL
Dutch Matrix
February 6, 2015 at 12:14
I have to ask, how much do you download per month?
Guild
February 6, 2015 at 12:22
Thanks to all these bloody game updates. I’m at about 100Gb a month now. I’m not big into downloading music or movies. I actually hate pirating movies. If I want a specific movie, I’ll go buy it. It used to sit at about 10Gb – 12Gb.
Dutch Matrix
February 6, 2015 at 12:26
Thanks. I hear you on buying movies. I bought every movie I wanted to watch or watch again. Until I got burned with too many only the movie, zero special features discs. The movie nut in me NEEDS them!
I was considering upgrading my line to something decent, as downloading a game via Steam can take the better part of a weekend, if not the entire weekend.
Guild
February 6, 2015 at 12:32
I’m finding it not too expensive either. I think I pay about R650pm with MWEB it’s the standard uncapped package. Only thing with it I need to watch the throttling line which on standard they set at 120GB. With their premium package they throttle at 500GB
Hammersteyn
February 6, 2015 at 12:37
Upgraded to 4mb today
Aries
February 6, 2015 at 11:49
I haven’t had lag once on the PS4 version yet
Guild
February 6, 2015 at 11:55
I haven’t had lag at all on the PS4 either but you can at least play it offline if you want. The PC version however requires the internet connection but makes no sense on a single player game
Aries
February 6, 2015 at 11:57
I know ya, me and hammer played quite abit and i got a 2mb line, D3 is the first time i played any diablo so it was surprising how fun the game gets when you start the rifts and bounties
Guild
February 6, 2015 at 12:00
I need to catch up to you guys and hopefully join in if your still playing. I loved D1 and D2. Played them broken. Diablo has been one of my favourites for a long time now.
Aries
February 6, 2015 at 12:02
I havent played in a while but need to get my other characters to a decent level
Hammersteyn
February 6, 2015 at 12:37
Heloooo Destiny.
Guild
February 6, 2015 at 12:46
I’ll get back to it after the tournament. Destiny raid first then D3 😛
Hammersteyn
February 6, 2015 at 20:17
Was kinda reffering to the lag in single player games. Activision would tell us that it’s not meant to be played like that though
Guild
February 6, 2015 at 11:41
No mention of Heroes of the Storm or Overwatch?
Shubhendu Singh
February 6, 2015 at 20:16
Overwatch will certainly be a powerhouse. Almost every TF2 fan will seek shelter there.
Tosh MA
February 6, 2015 at 11:41
There are 5 games in the Blizzard portion alone: Diablo, Starcraft, Warcraft, Hearthstone, Heroes of the Storm. And Overwatch (name pending) coming along as the sixth when it’s ready.
So adding Destiny and CoD to that makes it 8. 10 isn’t a far stretch.
Hammersteyn
February 6, 2015 at 12:36
Yeah well, Destiny 2 better have some changes or they aren’t seeing another cent from me
Mixers
February 6, 2015 at 12:58
Shame, seems you guys are punished in SA for DL’s, Steam is the best for gaming platform so far… even some of those exclusive titles make it across. Luckily with my line it takes a matter of minutes to download.. Seems not so for you guys, online gaming must be a bit of a pain..
Thinus Swart
February 6, 2015 at 14:15
“Warlords of Drainer” – It drains your wallet yes, but I’m pretty sure it was “Draenor”.