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Activision Blizzards Cash Flows

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Leading market positions across all game categories, Activision Blizzard is the second largest entertainment and gaming software business in the world by revenue (Reuters Agency). Activision has published some of the best selling console, handheld, and mobile video games such as Call of Duty (Reuters Agency)

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).

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Company History and Profile Activision and Blizzard Entertainment have been longstanding brands within the gaming industry for some time.Activision started out in 1979 as the world’s first independent developer and distributor of video games for gaming consoles such as Atari, Nintendo, and Sega, in addition to developing both gaming and business applications for personal computers.One of their earliest major hit games was Pitfall, which was designed for the Atari 2600 series gaming console. Stop Using Plagiarized Content. This project was so successful; it resulted in the production of several clones, including stand-up arcade games. After losing a multi-million dollar judgment on damages involving a patent infringement, Activision went through Chapter 11 bankruptcy proceedings and reorganization in 1991. It was during this time when they decided to concentrate solely on a video gaming production strategy, eventually developing popular games such as Sonic, Guitar Hero and the current Call of Duty Series. From 1997 to 2007, Activision acquired multiple companies geared towards strengthening their position relative to their gaming strategy, but have also kept their foot in the door for expanding their market into other entertainment ventures. Beginning in 1998, Activision launched strategic partnerships with comic and movie producers Marvel Entertainment, Disney Interactive, and LucasArts Entertainment

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.

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The company provides a wide range of video games which include PC based games, Microsoft Xbox 360 and Nintendo Wii among others. Globally, the company’s portfolio stands out as one of the best selling products (Christensen 77). The company has its network spreading across many countries from Europe, America and Asia

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.

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On the whole, the change is obvious and Activision has to be aware of these changes. Transition period between one generation of console to another generation of console hugely effects gaming industry

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.

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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.

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