Gaming Business News


A couple of related articles on the business of computer games, and Activision/Blizzard’s performance of late. The first comes from Neoseeker, and is an analysis of some yearly sales figures.

…$10.7 billion was what came of computer gaming last year, with retail sales accounting for 30 percent of total revenues. The increase previous years was driven mostly by online revenues from Asia, the world’s largest market, which evidently is responsible for nearly half of total global sales at this point.

Online PC gaming generated $4.8 billion in revenues, about double the worldwide retail sales for PC titles. Digital distribution is on the rise, too, with those sales getting up to $2 billion. Advertising via websites, portals, and the games themselves made $800 million.

The article also talks about the spread of PCs into homes and the prospects for future sales increases driven by upcoming titles such as Starcraft 2 and Diablo 3.

Elsewhere, Kotaku has a post with some analysis of Activision/Blizzard’s recent buyback of some of their own stock, financial news that warranted coverage on business sites. The company has tendered an offer to buy up to “146,500,000 shares of its outstanding common stock at a price of $27.50.” This sort of thing is fairly standard practice for companies with a surplus of cash on hand from high earnings, and it frequently causes the stock price to jump due to scarcity and good publicity. ATVI closed Tuesday at around $35 a share, and with a two-for-one stock split set to take effect August 25th, this might be a good time to invest in your favorite gaming company.

Or not; I’m not exactly a financial analyst, nor do I play one on the Internet. Stock advice offered in this post is the opinion of the author, and not necessarily the view of Diii.net.

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