“Today, probably 70 percent of our operating profit comes from non-console-based video games,” Gamasutra reports Bobby Kotick telling Wall Street Journal.
This information comes from asking Kotick about whether he was concerned about weak disc-based sales in the industry. “I care a lot less,” was his response. “It used to be, I would religiously look at weekly retail sell-through data, but it’s a very small part of our business now.” Later he added, “So, while you might see a month-to-month change or volatility against expectations, that doesn’t really get us too concerned.”
To clarify whether Kotick was including non-retail DLC for consoles such as the Stimulus Package for Modern Warfare 2, Gamasutra spoke to VP of corporate communications at Actizard (Blizzivision?), Maryanne Lataif. She answered that “non-console-based video games” means just that.
Kris Graft, reporting for Gamasutra, goes on to conclude that the statistics show the power of World of Warcraft. With 11-odd million active subscribers and the 55% operating margins reported at E3 2009 it’s easy to see how World of Warcraft is Actizard’s goose that lays the golden eggs. In contrast, Activision reported an overall profit margin of 23% across all operating segments for January-March 2010 quarter.
World of Warcraft is certainly not Actizard’s only “non-console-based video game” as their portfolio includes many iPhone and PC games, as well as paid-for DLC. Those offerings are, however, small compared to World of Warcraft.
“Five years ago, DLC and subscription services weren’t as popular,” Lataif said. Maybe Kotick’s dream of a Call of Duty subscription service will be better received than some of us are predicting?
It turns out that the beleaguered PC is far from the ailing platform publishers make it out to be.
PC really as commercially unviable as painted? What would make you pay for a COD online service?
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