But demand for last gen games is "weaker than expected"
Attachment 13670Not only [do] these devices deliver faster processing and better graphics, but these new consoles and continuing improvements to broadband infrastructure world-wide provide new and improved capabilities for online gaming, including same-day downloads, improved social features and new opportunities for emerging potentially higher margin business models like the sale of virtual items, downloadable content and other value-added online services that will provide a greater flexibility for our audience to access, consume and pay for content."
"The new consoles should be [a] catalyst for growth and margin expansion. And over the next two to three years as their install base grows, we expect to have greater opportunity to capitalize on a rapidly expanding audience, broader international penetration and more profitable business models."
Consumer spending on videogames topped $60 billion worldwide in 2013, Activision Publishing CEO Eric Hirshberg added, and 2014 should be an even more lucrative year. "We have never had more or larger opportunities. The console cycle had started strong and demand for next-gen games was higher than expected partially offsetting weaker than expected demand for current-gen titles.
"In 2014, we expect demand for next-gen games to grow; however, we again expect that to be offset by lower demand for current-gen games. Long-term, we expect the new consoles to drive industry growth and expand our opportunities."Attachment 13671Microsoft's Major Nelson argues that there's too much "online hate" about the respective fortunes of Xbox One and PS4 - we should all just be glad that both machines are selling well. EA's former boss John Riccitiello claimed in August last year that the new consoles would outsell their predecessors because they aren't just "super-powerful boxes".
Sales of next generation games and consoles have exceeded Activision Blizzard's expectations, offsetting weaker than anticipated sales of Xbox 360 and PS3 software during the firm's Q4 2013. That's according to Kristin Southey, senior vice president of investor relations, via SeekingAlpha.
"Much to our positive surprise, the Xbox One and PlayStation 4 sold over 7 million units combined in 2013, faster than their predecessors did at their launch," Southey noted.