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your account settings.My AccountLog OutDigital sales of video games and
downloadable content helped Activision Blizzard surpass Wall Street
expectations for the second quarter of 2014.But increased digital
revenues from games such as World of Warcraft and Diablo III making up
49% of all revenues weren't enough to prevent the company from seeing
a decline in net income of $204 million, down 37% from $324 million in
the same quarter last year.Growing acceptance of consumers to buy video
games digitally to download them online, rather than buy retail boxed
versions in stores helped the company's better than expected
performance, Activision Blizzard CEO Bobby Kotick said in a statement
accompanying the company's earnings release.Strong digital sellers were
Blizzard's World of Warcraft and Diablo III: Reaper of Souls computer
games and Hearthstone: Heroes of Warcraft iPad game, as well as Call of
Duty: Ghosts for console game systems.On the way later this year: World
of Warcraft: Warlords of Draenor, which already has more than 1.5
million pre orders; Destiny, the first game from Activision's
relationship with Halo developer Bungie, Skylanders Trap Team and Call
of Duty: Advanced Warfare.Destiny, out Sept. 9 for PlayStation 4 and
Xbox One, could set a record for most pre orders of a new intellectual
property, the company said. Call of Duty: Ghosts has been the top
selling game on the new consoles and Activision expects Call of Duty:
Advanced Warfare, due Nov. 4 for PS4, PS3, Xbox One and Xbox 360, to
have the highest number of pre orders of any game in 2014."We obviously
have spent a lot of time investing against not just this year but for
the next few years," Kotick told analysts during a conference call after
earnings were released. "I think we have a great roadmap for
opportunity."Michael Olson, senior research analyst with Piper Jaffray,
agreed, expressing confidence that saying that "the company can benefit
from renewed industry software growth" in the second half of 2014 as
more consumers migrate to the PS4 and Xbox One.And with Take Two
Interactive's Tuesday announcement to postpone fall release Evolve until
February and Electronic Arts' delay of Battlefield Hardline until next
year, he says, "the runway is clearing for Destiny."
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