Activision Blizzard (ATVI)

Microsoft Xbox360 Net Revenues (amounts in thousands)

Net revenues from sales of titles for the Xbox360 decreased from $150.6 million or 35% of publishing net revenues in the quarter ended June 30, 2007 to $127.8 million or 22% of publishing net revenues for the three months ended June 30, 2008.  This decrease primarily resulted from the timing of new title releases during the quarter.  During the last week of June 30, 2008, we released Guitar Hero: Aerosmith in North America and Europe. Due to the timing of Guitar Hero: Aerosmith release, there were limited revenues recorded in this quarter, as compared to revenues derived from the release of Guitar Hero II on the Xbox360 which was released during April 2007. We also released Kung Fu Panda worldwide and the European and Asia Pacific release of the LucasArts’ title Lego: Indiana Jones the Original Adventure on the Xbox360 during the quarter ended June 30, 2008.  This compared to the quarter ended June 30, 2007 releases of our first Guitar Hero on the Xbox360, Guitar Hero II, and the releases of Spider-Man 3, Shrek the Third and TRANSFORMERS: The Game.

In July 2008, Microsoft announced a reduction of the retail price of the Xbox360 by $50 in the U.S. and Canada. These price reductions may further grow the installed base of the Xbox360, which combined with our strong slate of titles could lead to an increase in net revenues relating to the Xbox360 platform.

Microsoft Xbox360 Net Revenues (amounts in thousands)

        Net revenues from sales of titles for the Xbox360 increased 95% from $102.8 million for the year ended March 31, 2006 to $200.4 million for the year ended March 31, 2007. As a percentage of publishing net revenues, net revenues from sales of titles for the Xbox360 doubled from 9% for the year ended March 31, 2006 to 18% for the year ended March 31, 2007. These increases are due to the growing installed base for the Xbox360, as well as an increase in the number of titles released. In fiscal 2007, we released ten titles for this platform, and according to NPD Funworld, three of our titles, Call of Duty 3, Tony Hawk's Project 8 and Marvel: Ultimate Alliance ranked among the top ten Xbox 360 titles during the third quarter fiscal 2007. In fiscal 2006, we released four titles concurrently with the November 2005 launch of the Xbox360 hardware, Call of Duty 2, THAW, Quake 4, and GUN, and we experienced strong sales for these four titles although limited by hardware availability.

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Microsoft Xbox360 Net Revenues (amounts in thousands)

        Net
revenues from sales of titles for the Xbox360 increased 95% from $102.8 million for the year ended March 31, 2006 to $200.4 million for the year ended
March 31, 2007. As a percentage of publishing net revenues, net revenues from sales of titles for the Xbox360 doubled from 9% for the year ended March 31, 2006 to 18% for the year ended
March 31, 2007. These increases are due to the growing installed base for the Xbox360, as well as an increase in the number of titles released. In fiscal 2007, we released ten titles for this
platform, and according to NPD Funworld, three of our titles, Call of Duty 3, Tony Hawk's Project 8 and Marvel: Ultimate
Alliance ranked among the top ten Xbox 360 titles during the third quarter fiscal 2007. In fiscal 2006, we released four titles concurrently with the November 2005
launch of the Xbox360 hardware, Call of Duty 2, THAW, Quake 4, and GUN, and we experienced strong sales
for these four titles although limited by hardware availability.

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