Activision Blizzard (ATVI)

Our stock price is highly volatile.

The trading price of our common stock has been and could continue to be subject to wide fluctuations in response to many factors, including:

•                  Quarter to quarter variations in results of operations;

•                  Our announcements of new products;

•                  Our competitors’ announcements of new products;

•                  Our product development or release schedule;

•                  General conditions in the computer, software, entertainment, media or electronics industries, and in the economy;

•                  Timing of the introduction of new platforms and delays in the actual release of new platforms;

•                  Hardware manufacturers’ announcements of price reductions in hardware platforms;

•                  Consumer spending trends;

•                  Changes in earnings estimates or buy/sell recommendations by analysts; and

•                  Investor perceptions and expectations regarding our products, plans and strategic position, and those of our competitors and customers.

In addition, the public stock markets experience extreme price and trading volume volatility, particularly in high technology sectors of the market. This volatility has significantly affected the market prices of securities of many technology companies for reasons often unrelated to the operating performance of the specific companies. These broad market fluctuations may adversely affect the market price of our common stock.

In our fiscal year 2007, we began recognizing stock-based compensation expense in accordance with Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment,” related to our employee equity compensation and employee stock purchase programs. The recognition of this expense has a significant impact in lowering our reported net income (or increase our reported net loss).

Beginning in the fiscal year ended March 31, 2007, we adopted Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), which requires us to recognize compensation expense for all stock-based awards based on estimated fair values. As a result, beginning with our first quarter

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Our stock price is highly volatile.

The trading price of our common stock has been and could continue to be subject to wide fluctuations in response to many factors, including:

·                              Quarter to quarter variations in results of operations;

·                              Our announcements of new products;

·                              Our competitors’ announcements of new products;

·                              Our product development or release schedule;

·                              General conditions in the computer, software, entertainment, media or electronics industries, and in the economy;

·                              Timing of the introduction of new platforms and delays in the actual release of new platforms;

·                              Hardware manufacturers’ announcements of price reductions in hardware platforms;

·                              Consumer spending trends;

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·                              Changes in earnings estimates or buy/sell recommendations by analysts; and

·                              Investor perceptions and expectations regarding our products, plans and strategic position, and those of our competitors and customers.

In addition, the public stock markets experience extreme price and trading volume volatility, particularly in high technology sectors of the market.  This volatility has significantly affected the market prices of securities of many technology companies for reasons often unrelated to the operating performance of the specific companies.  These broad market fluctuations may adversely affect the market price of our common stock.

We seek to manage our business with a view to achieving long-term results, and this could have a negative effect on short-term trading.

We focus on creation of shareholder value over time, and we intend to make decisions that will be consistent with this long-term view.  As a result, some of our decisions, such as whether to make or discontinue operating investments, manage our balance sheet and capital structure, or pursue or discontinue strategic initiatives, may be in conflict with the objectives of short-term traders.  Further, this could adversely affect our quarterly or other short-term results of operations.

Our stock price is highly volatile.

The trading price of our common stock has been and could continue to be subject to wide fluctuations in response to many factors, including:

•                              Quarter to quarter variations in results of operations;

•                              Our announcements of new products;

•                              Our competitors’ announcements of new products;

•                              Our product development or release schedule;

•                              General conditions in the computer, software, entertainment, media or electronics industries, and in the economy;

•                              Timing of the introduction of new platforms and delays in the actual release of new platforms;

•                              Hardware manufacturers’ announcements of price reductions in hardware platforms;

•                              Consumer spending trends;

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Our stock price is highly volatile.

The trading price of our common stock has been and could continue to be subject to wide fluctuations in response to many factors, including:

•                              Quarter to quarter variations in results of operations;

•                              Our announcements of new products;

•                              Our competitors’ announcements of new products;

•                              Our product development or release schedule;

•                              General conditions in the computer, software, entertainment, media or electronics industries and in the economy;

•                              Timing of the introduction of new platforms and delays in the actual release of new platforms;

•                              Hardware manufacturers’ announcements of price reductions in hardware platforms;

•                              Changes in earnings estimates or buy/sell recommendations by analysts; and

•                              Investor perceptions and expectations regarding our products, plans and strategic position and those of our competitors and customers.

In addition, the public stock markets experience extreme price and trading volume volatility, particularly in high technology sectors of the market.  This volatility has significantly affected the market prices of securities of many technology companies for reasons often unrelated to the operating performance of the specific companies.  These broad market fluctuations may adversely affect the market price of our common stock.

We seek to manage our business with a view to achieving long-term results, and this could have a negative effect on short-term trading.

We focus on creation of shareholder value over time, and we intend to make decisions that will be consistent with this long-term view.  As a result, some of our decisions, such as whether to make or discontinue operating investments, manage our balance sheet and capital structure, or pursue or discontinue strategic initiatives, may be in conflict with the objectives of short-term traders.  Further, this could adversely affect our quarterly or other short-term results of operations.