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ATVI » Topics » Cost of Sales - Software Royalties and Amortization (amounts in thousands)

This excerpt taken from the ATVI 10-Q filed Aug 8, 2008.

Cost of Sales – Software Royalties and Amortization (amounts in thousands)

 

Three Months
Ended

 

% of

 

Three Months
Ended

 

% of

 

 

 

 

 

June 30,

 

Publishing

 

June 30,

 

Publishing

 

Increase/

 

Percent

 

2008

 

Net Revenues

 

2007

 

Net Revenues

 

(Decrease)

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40,874

 

7

%

$

78,252

 

18

%

$

(37,378

)

(48

)%

 

“Cost of sales – software royalties and amortization” decreased $37.4 million from $78.3 million or 18% of publishing net revenues for the three months ended June 30, 2007, to $40.9 million or 7% of publishing net revenues for the three months ended June 30, 2008.  The decrease was driven by product development efficiencies, specifically, our releases during the three months ended June 30, 2008 of Kung Fu Panda had efficiencies from offshore development and Guitar Hero: Aerosmith had below average product development expenses as it leverages Guitar Hero III technology, and by the continued momentum from Call of Duty catalogue sales.

 

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