The next battlefield in the gaming market is undoubtedly digital.
Speaking to investors during an earnings call yesterday, Activision Blizzard CEO Robert Kotick said that during the first quarter of 2011, 50 percent of his company's $1.4 billion in revenue was derived from digital sources, lending even more credence to the idea that the gaming market is quickly moving away from the traditional "packaged goods" model.
"We continue to shift our business towards digital delivery of content and establishing direct ongoing relationships with our audiences," Kotick said, according to a transcript obtained from SeekingAlpha. "While this quarter, 50 percent of our revenues were digital, we are still scratching the surface when it comes to the role that digital delivery will play in our products and franchises."
Kotick's comments on digital delivery follow a similar statement made last week by his archrival, Electronic Arts CEO John Riccitiello. Speaking during his own call with investors, Riccitiello said his company is shifting away from the traditional packaged-goods model and toward becoming a full-fledged digital-delivery firm.… Read more