Activision’s Profit Rises Seven Times Over
August 5, 2009 by Mark Ellis
Filed under Business
Nowadays, most companies are satisfied with even a minor gain in profit, signifying that the company has managed to do well in the midst of the economic crisis. However, Activision Blizzard Inc., the largest videogame publisher, has posted a sevenfold increase in profit in its second quarter thanks to a merger with a Vivendi SA division.
This means that Activision’s profits have jumped from $28 million a year earlier to $195 million this quarter, beating analyst expectations. This comes after Activision’s sales tripled to $1.04 billion due to the runaway success of World of Warcraft, Blizzard’s massively popular online game which requires players to pay a monthly subscription.
However, Activision has been forced to cut its 2009 sales projection due to its delaying of Starcraft II, the sequel to Blizzard’s worldwide hit, Starcraft. The company is confident that Starcraft II will sell in the neighborhood of 4 million copies globally, meaning that Activision Blizzard has to focus on perfecting the game instead of releasing it quickly.
Image: Flickr
