Activision Blizzard
Activision Blizzard is very profitable due to many reasons. One of those reasons is contributed by the subscription game of World of Warcraft, which has 10.2 million subscribers as of December 2011. It is published by Blizzard; World of Warcraft wasn’t just a groundbreaking game, but also a business accomplishment. Its impact on the business industry is huge. Many other gaming companies have tried to replicate World of Warcraft’s success since the game’s 2004 launch. This game had and still has so much potential. Blizzard is able to bring in revenue every month and has knowledge of its customers. With this information, Activision Blizzard is better than any of its competitors that will try to replicate its success in the future.
Another reason why Activision Blizzard is so profitable is that, in order to maintain recurring revenue, you need a product that customers will want to return to again. The issue that games run into is a short lifecycle or they just get old. That’s no problem for games like Call of Duty: Modern Warfare 3 and Starcraft II, which are owned by Activision. They take hours to finalize their single player campaign mode and have longer lifecycles thanks to their multiplayer game modes, which are even then always updated with downloadable maps and content for purchase. Due to this, games like these never get old and customers will always go running back for the new game of these series to release. Call of Duty: Elite, an annual subscription with downloadable content available to the most customers of Modern Warfare 3. Activision Blizzard stated that 7 million customers have signed up and there are 1.5 million paying customers since February 2012. This is just the beginning, there will be more to come and make Activision Blizzard even more profitable.
The final reason why Activision Blizzard is so profitable is that they are very unique to other gaming companies. They have the ability to make a lot more games and series then other competitors.
Another reason why Activision Blizzard is so profitable is that, in order to maintain recurring revenue, you need a product that customers will want to return to again. The issue that games run into is a short lifecycle or they just get old. That’s no problem for games like Call of Duty: Modern Warfare 3 and Starcraft II, which are owned by Activision. They take hours to finalize their single player campaign mode and have longer lifecycles thanks to their multiplayer game modes, which are even then always updated with downloadable maps and content for purchase. Due to this, games like these never get old and customers will always go running back for the new game of these series to release. Call of Duty: Elite, an annual subscription with downloadable content available to the most customers of Modern Warfare 3. Activision Blizzard stated that 7 million customers have signed up and there are 1.5 million paying customers since February 2012. This is just the beginning, there will be more to come and make Activision Blizzard even more profitable.
The final reason why Activision Blizzard is so profitable is that they are very unique to other gaming companies. They have the ability to make a lot more games and series then other competitors.