Activision Blizzard (ATVI)

North America Publishing Net Revenues (in thousands)

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North America Publishing Net Revenues (in thousands)

North America publishing net revenues increased 211% from $99.6 million for the three months ended June 30, 2006, to $309.5 million for the three months ended June 30, 2007.  The increase was due to the strong performance of four key titles released in the first quarter of fiscal 2008, Guitar Hero II for the Xbox360, Spider-Man 3, Shrek The Third and TRANSFORMERS: The Game.  According to NPD, for the quarter ended June 30, 2007, two of the Top 3 products in the United States by revenue were Guitar Hero, ranked #1, and Spider-Man 3, ranked #3.   The fiscal 2007 first quarter performance included new title releases, Over the Hedge and X-Men: The Official Game and strong performance of certain catalog titles.

North America Publishing Net Revenues (in thousands)

North America publishing net revenues increased 2% from $696.3 million for the year ended March 31, 2005 to $710.0 million for the year ended March 31, 2006. The increase reflects our largest slate of releases in company history and expansion of our hand-held presence with products for PSP, NDS, and GBA. This was offset by weaker market conditions resulting in higher provisions for returns and price protection. North America publishing net

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North America Publishing Net Revenues (in thousands)

North America publishing net revenues decreased 34% from $111.9 million for the three months ended September 30, 2005 to $74.2 million for the three months ended September 30, 2006.  For the six months ended September 30, 2006, North American publishing net revenues were $173.9 million, a decrease of 22% from $224.2 million for the six months ended September 30, 2005.  The decreases in net revenues for both the quarter and six months ended September 30, 2006 were due to a decrease in the number of titles released combined with continued reduced pricing on current generation catalog titles as a result of the ongoing console transition.   In the second quarter of fiscal 2007, we had only two new releases, World Series of Poker: Tournament of Champions and Cabela’s Alaskan Adventures.  This compares to the second quarter of fiscal 2006 where our new releases were X-Men Legends 2, Ultimate Spider-Man, and World Series of Poker.  In the first six months of fiscal 2007, we released Over the Hedge, X-Men: The Official Game, World Series of Poker: Tournament of Champions and Cabela’s Alaskan Adventures.  This compares to our fiscal 2006 first six month releases of Madagascar, Doom 3 for the Xbox, Doom 3: Resurrection of Evil for the PC, Fantastic Four, Ultimate Spider-Man, and X-Men Legends 2. The decreases were partially offset by continued strong performance of Call of Duty 2 for the Xbox360, acquisition of Guitar Hero, and revenue from Xbox Live downloads of Doom 3 Arcade and Call of Duty 2 Maps Pack.  North America publishing net revenues also decreased as a percentage of consolidated net revenues from 50% and 48% for the three and six months ended September 30, 2005, respectively, to 40% and 46% for the three and six months ended September 30, 2006, respectively.  The decreases in the percentages of total consolidated net revenues are a result of the net revenue decline coupled with strong growth of our distribution business during these periods which became a larger portion of our consolidated net revenues.

North America Publishing Net Revenues (in thousands)

North America publishing net revenues decreased 11% from $112.3 million for the three months ended June 30, 2005, to $99.6 million for the three months ended June 30, 2006.  The decrease was primarily due to a greater number of titles in the first quarter of fiscal 2006 versus the first quarter of fiscal 2007 combined with strong performance on certain of our fiscal 2006 first quarter releases.  In the first quarter of fiscal 2007, we released Over the Hedge and X-Men: The Official Game.  This compares to our fiscal 2006 first quarter releases of Madagascar, Doom 3 for the Xbox, Doom 3: Resurrection of Evil for the PC and the North American release of Fantastic Four.  This was partially offset by stronger than expected performance of certain catalog titles during the first quarter of fiscal 2007.  Catalog titles are defined as titles released in quarters previous to the current quarter.

North America Publishing Net Revenues (in thousands)

North America publishing net revenues increased 56% from $446.8 million for the year ended March 31, 2004, to $696.3 million for the year ended March 31, 2005.  The increase reflects the strong performance of our fiscal 2005 slate of titles, strong catalog sales from a number of our franchises, and a significant increase in our hand-held platform presence.

North America Publishing Net Revenues (in thousands)

North America publishing net revenues decreased 11% from $112.3 million for the three months ended June 30, 2005, to $99.6 million for the three months ended June 30, 2006. The decrease was primarily due to a greater number of titles in the first quarter of fiscal 2006 versus the first quarter of fiscal 2007 combined with strong performance on certain of our fiscal 2006 first quarter releases. In the first quarter of fiscal 2007, we released Over the Hedge and X-Men: The Official Game. This compares to our fiscal 2006 first quarter releases of Madagascar, Doom 3 for the Xbox, Doom 3: Resurrection of Evil for the PC and the North American release of Fantastic Four.  This was partially offset by stronger than expected performance of certain catalog titles during the first quarter of fiscal 2007. Catalog titles are defined as titles released in quarters previous to the current quarter.