Activision Blizzard (ATVI)

As far as the pipeline is concerned, I think one of the great benefits of having a portfolio with 10 multi-million unit selling franchises is that you can expect virtually every one of those properties will be exploited on an annual or close to annual basis.

In addition, over the next few years, we’ll be introducing new products based on James Bond, a number of new DreamWorks titles, a number of new Marvel titles. And we recently announced the acquisition of Bizarre Creations and our entry into the racing genre, which is the largest genre that we do not participate in today. So we have a very full pipeline of product over the next few years and expect to continue to see brands like Guitar Hero and Call of Duty grow.

Thomas Tippl  - Activision - CFO

And with regard to your question on 25%-plus sounds high, well, it’s not unprecedented. There are other competitors that have been at that level, at least for a brief period of time. From our perspective, if you just put the two companies together as they are today, as I said, you’re already at 18.6%, and then just getting Sierra to break-even, it’s about three to four points, as I mentioned, so at that point you’re already looking at call it 22%, and so, really, if you look at the rest contributing three to four points, with the kind of growth rates we are seeing, with the kind of operating discipline that we have been operating under, I think it’s a very reasonable objective for us to go for.

Bobby Kotick  - Activision - Chairman, CEO

Look, it’s become apparent today, as well, that when you look at the subscription-based massively multi-player online business, those are margins in excess of anything that we’ve seen in the packaged goods business. And then you add a variety of enhancements to the packaged goods business, whether we’re talking about in-game advertising and sponsorship, downloadable content. We are starting to see the benefits of margin expansion coming from those things.