You guys don't know how business work, a billon dollars in sales is not profit. Expenses still has to come out of all that, production costs, wages, advertising etc. Also there would be kick back deals to retailers and importers. $384 million in net income is the true figure of profit and then you have to pay all the taxes associated with the income as well. Then put that money back in to keep the company running and working on new projects also paying out dividends to share holders and the like. It is not so straight forward with one person getting all that income.
[UPDATE]: Dungeon-crawling RPG hits new highs, but Activision Blizzard's revenues and profits decline.
Diablo III can lay claim to the title of Blizzard's most anticipated game ever, as the PC action role-playing game was today confirmed as the developer's most preordered title of all time. That news comes with a slight asterisk, as it includes copies of the game owed through the World of Warcraft Annual Pass promotion, which gives a free copy to anyone who signs up for a full year of the subscription-based massively multiplayer online role-playing game.
The Diablo III news was announced as part of Activision Blizzard's earnings report for the quarter ended March 31, which also included some noteworthy stats for the Activision half of the company. The publisher confirmed that the Call of Duty Elite service has 10 million registered users now, with more than 2 million of them paying for the premium tier membership. The game-and-toy synergy of Skylanders: Spyro's Adventure also continued to sell for the company, with more than 30 million toys sold through March. It has been doing so well that Activision's internal estimates have Skylanders toys outselling even Star Wars for the first three months of the year.
As for the company's actual financial figures, revenues and net profit both surpassed projections set in February, but fell short of the company's performance for the same quarter last year. For the quarter, Activision posted sales of $1.17 billion, down year-over-year from $1.45 billion. It also chalked up $384 million in net income, down from $503 million for the same period last year.
The results beat expectations sufficiently for Activision Blizzard to up its full-year forecast. The company now expects the calendar year 2012 to see it ring up $4.2 billion in sales (up from $4.15 billion) and earnings per share of $0.65, up from $0.63.
[CORRECTION]: This article previously stated that Activision Blizzard CFO Dennis Durkin said Diablo III was one of two Blizzard titles set to launch in 2012. He actually said Diablo III was one of "at least" two Blizzard titles launching this year. GameSpot regrets the error.
I'll be out tanning by the pool for the summer... not going to throw away the whole summer for one game. ;)
There should be a limit on how much one person can own...once u reach let's say 100,000,000$ u are retired and should live of your profits...it's far far over the top than one man needs to live extremely well!
4.2 billion in sales and still fight piracy with constant internet connection and money pit auction house...4.600 employees...if only this years sales were to be divided amongst all employees evenly each would get almost 1,000,000 dollars...i wonder who are the greedy sobs... with billions...why in hell would one person need so much money for? terrible society we live in...
@OdinssonThor It's a terrible society we live in? When people that are successful get to enjoy what that success entitles, yea that sounds just terrible...
@OdinssonThor First of all 4.2 billion is sales, not profit. Acivision is also owned by a conglomerate which is owned by other companies that probably reinvest the money...
Stop complaining about companies that make millions and enjoy the quality games that they make. If there wasnt billions to be made no people out there would be working so hard to entertain all of us....
@gops90 Too bad they severely handicapt the potential of the quality of the games via their profit-minded perspecitive. It's not just millions, but hundreds of millions.
Taking out stuff that has always been in games (back in the 15 hour plus FPS days) and announcing it has DLC months before the game is even released.
I also highly doubt that the drive for making a great quality game only comes with the assurance that they will make billions. I would work hard to make a great quality game just for everybody to be completely astonished and blown away, and yes SOME profit for bill paying and recreational use.
@gops90 Agreed...for the most part. I take issue with Activision personally, which benefits greatly off their developers and, from what I've heard, Bobby Kotick is the worst boss on the planet. Look at what happened to Infinity Ward.
Diablo is great. Played the 2nd game a lot and enjoyed it. Just wish it isn't that much of a money grubbing game with in game money transactions (Thanks Activision). Hopefully it won't go with standalone expansions "worth their money" (ala Starcraft 2).
I'm not going to buy it 'cause I refuse to support this kind of DRM. Sadly, the game will sell millions.
What are you talking about seriously?!!
They didnt make any profit?!! Billions of profits!! Because is slight less than previous year doesnt mean they didnt make any profit...
We talking about a "merge company" that sales millions of copies and have constantly income of more than 130million $$ per month from WoW subs alone...
If this company isnt making profits then noone is/ will ever .
Got my preorder two days ago. Between this, Tribes Ascend, and The Secret World I'm all set for a power-nerdy summer. -And loving it.
Well its logical that they make no profit considering they are working on three games "WoW: MoP, Diablo 3, Starcraft 2: HotS" . However, with the amount of preorders of Call of Duty and Diablo 3, its weird to see them not making profit.
Well they make quality product alright, but the amount you pay for the prevention/appraise phase of a product also decreases the chance of failure but you also may lose money because of it.
@Raeldor You are not missing anything.
Of course they broke records, the game has been on preorder for so long. In fact one of my friends forgot he had reserved it and did it twice.
They are LOSING profit and they have Call of Duty, Diablo, World of Warcraft, and Skylanders? Pathetic.
Not gonna get it. Not to say it's bad, I just don't have the money for it. One thing I don't like is the real money auction house. Hope that those who buy enjoy it. TC
Let's see if the game can survive the hype. i can't wait for the drama after release:
"OMG this game is dumbed down as hell!!"
"where are those X/Y features from the first games?"
"this game is for COD kids"
"Greedy activision ruined blizzard"
etc, etc, etc.
I will get the game, let's hope it will be fun.
I've been playing Diablo since the first game back in the day. I think if anyone still whines about the changes between 1,2, and now 3, it will be because they obviously didn't look at any of the pre-launch content, or pay attention to the game's forums, or other gaming sites that talk about the changes that they've said they made to the game. Still, there will always be some people who are unhappy with anything no matter what.
Just to add, I my-self am not very happy with needing a constant connection to play if I intend to only play it in single player mode. Still, it's Diablo so I'm putting up with it for now until I get tired of paying it. Normally I don't support draconian DRM measures in games and as such it's been a while since I played any Ubisoft games and games by a few other studios who use the same type of DRM. For Diablo though I make a very special exception.
@alenth Blizzard ruined Blizzard long before Activision got their money grubing paws on them.
@alenth the drama you describe has been happening for a while
Well, only an idiot would support Activision, but hey whatever floats your boat I guess.
Most people who buy Diablo III are fans of Blizzard, and not Activision. Just because there was a partnership between the two, doesn't mean they have to suddenly stop supporting one of the companies they happen to like.
Most of us hate Activision with a passion, but given the circumstances, we really don't have a choice... unless we want to forfeit playing Diablo III altogether. No thank you.
Im going to be preordering my copy tommorow. Im going to be having a cool month of gaming with D3 and Max Panye 3.
I have zero interest in this game. I played diablo 2 and just got bored to death. Or maybe it's bad memories of lending my disc to a friend and he ended up somehow breaking the disc...
@Oldboy08 I'm sorry you have such terrible taste in games.
@Oldboy08 I have to agree. I didn't play Diablo 2, but I played the beta and can't see what all the fuss is about. Seemed like a major click-fest with no strategy whatsoever (except for running around the final boss).
Maybe there's team combos or something later in the game that I'm missing, so I'll check the review, but right now there's better RPGs out there for my hard earned cash (Xenoblade Chronicles).
I would like to make a bet with you :)
Im betting you will say " this game is too hard for me" or/and "theres just to much strategy involved to be funny" if/when u reach the Nightmare mode ( let alone Hell and Inferno modes ).
And you consider Xenoblade Chronicles a better rpg? No wonder you dont understand the fuss about D3 on these many D3 theads u posted in. You are terrible misinformed in my opinion.
Playing the tutorial mode that is the normal mode of D3 during beta was enough for you to say that its a click-fest with no strategy? That is a claim that only the ones that will be able to farm the harder modes can do.
ha Raeldor me too. All it was is a click fest. No skill involved. You know there's going to be idiots who will pay for items with RL cash on the Auction House.
@Oldboy08 go die in a hole
lol 'fanboys' so protective :)
Because I want to, duh!
@emperiox Why you here then? Typical trolls.
i use to have D1 but i just could not get into it, i was way to much into Red alert at the time, i tried playing D3 on the beta but the game is just not for me i guess
@ollismCareful ollism, fanboys have a tendency to foam at the mouth and charge at people who disagree with their choice of stupid games like Diablow. ;)
Content you might like…
Users who looked at this article also looked at these content items.
Avalanche Studios co-founder says developer's ambition is for action, not moments that make players cry; steampunk-style game on hold. Full Story
- Posted May 15, 2013 6:33 am PT
4A Games creative director Andrew Prokhorov thanks Jason Rubin for telling the studio's story, but says, "We deserve the ratings we get." Full Story
- Posted May 16, 2013 12:44 pm PT