Activision Blizzards Cash Flows
The company’s second-half, Blizzard Entertainment, focuses on the firms’ pc gaming industry with best-selling games such as StarCraft, and the #1 global subscription-based online multiplayer World of Warcraft (Reuters Agency).
In 2001, Activision acquired the rights to the Columbia Pictures’ feature film Spider-Man, and had signed a multi-year publishing agreement between DreamWorks SKG in 2003. Blizzard Entertainment began in 1991 as a company called Silicon & Synapse, also designing games for Sega-Genesis, Super Nintendo, and DOS- and Mac- compatible games for personal computers.
The company has several segments which include Activision Publishing, Blizzard Entertainment and Blizzard Distribution which make it very competitive. The publishing segment is mainly concerned with creating, marketing and sale of the company’s products to its main customers which includes game specialty stores and electronic stores. The macroeconomic environment refers to societal forces affecting the entire microenvironment. Such forces include economic, demographic, technological, political, global, social- cultural and legal factors as discussed below. It is always important to learn the rules before playing the game (Ricky and Pustay 85). However, many people lack knowledge about political/ legal environment. Activision Blizzard Inc is a California based company and sells its products to a number of Asian, American and European countries where by rules governing the industry are quite different.
Activision’s performance record shows that gaming industry faces a huge halt at these times. During recession Activision was able to maintain its sales and profit curve but in 2005 when all console developers like Sony and Microsoft were preparing for launch of their new consoles gaming companies like Activision and its rival EA has to face depreciation in their business as customers are waiting for newer version of game and gaming consoles.
Ricky, Griffin, and Pustay, Michael. International business: a managerial perspective. London: Pearson Education Press, 2003. Print.
Kotler, Phillip, and Keller, Kevin. Marketing management. London: Prentice Hall Publishing, 2006. Print.
Orbanes, Phillips. The game makers: the story of Parker Brothers. Boston: Harvard.