Profits double at Activision Blizzard in last three months
The videogame biz is showing signs of an upswing after months of declining sales.“Call of Duty: Modern Warfare 2″ has earned more than $1 billion since its release in November and was last year’s top-selling title. Profits doubled at Activision Blizzard, the industry’s largest gamemaker, during the last three months, with the company earning $381 million mostly from popular franchises like “Call of Duty” and “World of Warcraft.” It reported $1.3 billion in revenue, up 33% from the same period a year ago. Activision will release four titles this quarter, including new racing game “Blur,” actioner “Singularity,” and licensed games, “Shrek Forever After” and “Transformers: War for Cybertron.” “We continue to find ways to add profitable franchises that allow us to increase our operating margins,” Activision Blizzard topper Robert Kotick said. It hopes to launch even more franchises through a new ten-year-pact with “Halo”-creator Bungie. Cost cutting and a lineup of more popular titles also helped THQ put the brakes on its bleeding bottomline and significantly increase earnings this week (Daily Variety, May 6).
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