Activision Blizzard F2Q09 (Qtr End 9/30/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-11-05 18:40:28.0

Tags: U.S. Bancorp Piper Jaffray Inc., Call Transcript, Business, Activision Inc., Jeetil Patel, Earnings, Guitar, Seeking Alpha, U.S. Bancorp Piper Jaffray Inc., Call Transcript, Business, Activision Inc., Jeetil Patel, Earnings, Guitar, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) And your first question will come from Tony Gikas of Piper Jaffray.

Tony Gikas - Piper Jaffray

Maybe you could just start out by giving us a little bit of visibility on the Vivendi businesses that were sold or discontinued that you mentioned. And then the second question, if I can sneak one in, for Guitar Hero World Tour, could you give us an approximate percentage breakdown of the units by the band, guitar, and software only SKUs? Thanks.

Robert A. Kotick

Why don’t we start with the Vivendi Games businesses -- there were a lot of different projects and businesses that we identified as not likely to achieve the profit margin potential that we look for. Most of those products had found homes at other places and are probably more appropriate strategically for other publishers. The one area that we still have not made final determinations about is the mobile business, but we view -- I think you know this, Tony, but we view platforms as something that are critically important to the brand but not necessarily a skill that we need to have internally. Overall I will say that we were more successful in eliminating the businesses at lower costs who were finding homes for projects and people than we expect that you would be going into the transaction.

As far as the Guitar Hero business, we don’t comment on the specifics of any one SKU or platform or category, so that’s not detail that we would generally provide, other than to say that as Mike pointed out, World Tour is off to a great start. The band kit, I don’t think we’ll be able to keep in adequate supply through the end of the year. We did expect to have more band kits earlier but we definitely have been surprised by the response to the band kit.

Tony Gikas - Piper Jaffray

Okay. Thanks, guys.

Operator

Jeetil Patel from Deutsche Bank.

Jeetil Patel - Deutsche Bank

A few questions -- first of all, I guess with the sale of some of the products that were almost done, like Ghostbusters and 50 Cent, and I guess in general the bigger propositions [inaudible] as you are talking about, I guess what do you think is going on in the industry that makes it so tough to make money or I guess why are you de-emphasizing some of the kind of lesser known brands and focusing on the bigger franchises out there? Is it industry that is causing that or do you think it is more strategy on your part that seems to be [winning] big? I kind of want to understand the dynamics there.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here