14 DAY TRIAL // Activision Blizzard, one of the biggest videogame publishers in the world, announced that, thanks to strong performance of the World of Warcraft MMO and of the Modern Warfare franchise, the company expects to make more money in the current fiscal quarter than it initially thought it would. The company expected to have earnings of 47 cents for each share based on Generally Accepted Accounting Principles and has not raised them by 2 cents.
Bobby Kotick, the chief executive officer of Activision Blizzard, told investors that “We benefited from the record-breaking launch of the Call of Duty: Modern Warfare 2 map pack, which was previously expected to launch in the June quarter.” Commenting on the increase in guidance, he also said “It is always helpful to begin a year with great momentum. However, we remain cautious about the economy and consumer spending and the fact that the majority of our games are not expected to launch until the fall”.
Initial reports are saying that the first downloadable content pack, called the Stimulus Package, for Modern Warfare 2 managed to sell 1 million copies in the first day and 2.5 million in the first week. The DLC was priced at 15 dollars, five more than the fans expected, and brought with it three entirely new maps and two ones re-purposed from the first Modern Warfare. Kotick also said that March earnings that were already higher because of the Stimulus would also look better because Activision Blizzard moved some operating expenses into June.
Reacting to the statements from Kotick Jeff Brown, who is the vice president of corporate communication at Electronic Arts, offered this comment: “This is kind of like announcing: The race horse I shot last month has won the Triple Crown!”. Electronic Arts has an exclusive publishing deal with Respawn Entertainment, the studio formed by the people Activision fired from Infinity Ward.