Full Description

Activision Blizzard Inc., formerly Activision, Inc., incorporated in 1979, is an online and console game publisher. On July 9, 2008, the Company was formed by combining Activision, Inc., an independent publisher of interactive entertainment, and Vivendi Games, Vivendi SA’s interactive entertainment business. The Comp any operates in four operating segments: Activision Publishing; which is engaged publishing interactive entertainment software and peripherals which includes Activision, Inc. and certain studios, assets, and titles previously included in Vivendi Games' Sierra Entertainment operating segment prior to the Business Combination (Activision), Blizzard Entertainment, Inc. and its subsidiaries, which are engaged in publishing traditional games and online subscription-based games in the MMORPG category (Blizzard); Activision Blizzard Distribution, which is engaged in distribution of interactive entertainment software and hardware products (Distribution), and Activision Blizzard's non-core exit operations.

Activision Publishing Segment

The Company owns number of properties, such as the Guitar Hero and Call of Duty franchises. The Company also has acquired the rights to publish products based on franchises, such as DreamWorks' Animation LLC (DreamWorks), Harrah's Entertainment, Inc. (Harrah), Hasbro Properties Group (Hasbro), MGM Interactive and EON Productions Ltd. (MGM & EON), Mattel, Inc. (Mattel), Marvel Entertainment, Inc. (Marvel), and professional skateboarder Tony Hawk, to develop video games based on their intellectual property. Its products are available for sale or rental in thousands of retail outlets in North America. Its North American retail customers include Best Buy, GameStop, Target, Toys "R" Us, and Wal-Mart.

Blizzard Entertainment Segment

The Blizzard business involves the development, marketing, sales and support of traditional games and online subscription-based games in the MMORPG category. Blizzard distributes its product and generates revenues worldwide through various means: subscription revenues (which consist of fees from individuals playing World of Warcraft and other ancillary online revenues); retail sales of physical "boxed" product; electronic download sales of personal computer products; and licensing revenues from third-party companies who distribute World of Warcraft in China and Taiwan. In addition, Blizzard operates a free online game service, Battle.net, which attracts millions of active players. Battle.net is a service that allows millions of players to connect and play Blizzard games and strengthens brand loyalty among current Blizzard gamers.

Activision Blizzard Distribution Segment

The Company distributes interactive entertainment hardware and software products in Europe through its European distribution subsidiaries: Centresoft in the United Kingdom; NBG in Germany; and CD Contact in the Benelux countries. These subsidiaries act as wholesalers in the distribution of products and also provide packaging and logistical and sales services. They provide services to its publishing operations and to various third-party publishers, including Sony, Nintendo, and Microsoft. Centresoft is Sony's exclusive distributor of PlayStation products to the independent market sector of the United Kingdom.

The Company competes with Sony, Nintendo, Disney, Time Warner and Microsoft.