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This excerpt taken from the ATVI 10-K filed Jun 9, 2006. Call of Duty. According to NPD, we were the only publisher to have three top-ten PC titles
for calendar year 2004: This excerpt taken from the ATVI 10-Q filed Feb 8, 2006. Call of Duty 2 titles. Though many of these titles have substantial
production or acquisition costs and marketing budgets, once a title recoups
these costs, incremental net revenues directly and positively impact operating
profits resulting in a disproportionate amount of operating income being
derived from these select titles. We
expect that a limited number of titles and brands will continue to produce a
disproportionately large amount of our net revenues and profits.
Three factors that could affect future publishing and distribution net revenue performance are console hardware pricing, software pricing and transitions in console platforms. As console hardware moves through its life cycle, hardware manufacturers typically enact price reductions. Reductions in the price of console hardware typically result in an increase in the installed base of hardware owned by consumers. Historically, we have also seen that lower console hardware prices put downward pressure on software pricing. While we expect console software launch pricing for the Xbox360 to hold at $59.99, we have started to see software pricing declines on the current-generation console systems. Additionally, when new console platforms are announced or introduced into the market, such as the upcoming 2006 calendar year releases of the PS3 and Revolution and the November 2005 release of the Xbox360, consumers typically reduce their purchases of game console entertainment software products for current console platforms in anticipation of new platforms becoming available. During these periods, sales of our game console entertainment software products may be expected to slow or even decline until new platforms are introduced and achieve wide consumer acceptance.
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This excerpt taken from the ATVI 10-Q filed Aug 4, 2005. Call of Duty. In addition, the number of premium PC titles
released in the first quarter of fiscal 2005 increased to three titles from one
PC title released in the first quarter of fiscal 2004. We expect fiscal
2006 PC net revenues as a percentage of total publishing revenues to decrease
from the prior fiscal year as there were three strong performing PC exclusive
releases in the prior fiscal year, This excerpt taken from the ATVI 10-K filed Jun 9, 2005. Call of Duty, were based on our
wholly-owned original intellectual property.
Additionally, during fiscal 2003, we recorded an approximate $7.0
million charge related to an assessment of the recoverability of certain of our
investments in long-term licensing agreements.
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