Bobby Kotick Finally States the Obvious on Digital Margins

So, it would appear that Activision Blizzard CEO Bobby Kotick has finally got round to saying what everyone else on the planet knew anyway: games companies can make more money through digital content than physical product.

Speaking at a recent investor event, he shockingly revealed that "digital revenues are associated with very high margins today, and we expect our digital revenues to continue to increase well into the future."

Yes, Bobby. Downloadable games do indeed result in lower costs for your company (just like everyone else knew). Whether Activision Blizzard will actually take the lead and provide their titles for a lower price in future is yet to be confirmed^* but it's nice to see that someone in the industry is willing to man up and actually speak about the disparity between digital delivery and physical copies, as well as how lucrative downloadable content can be.

He also revealed that the company pulled in $1.7 billion in the last year through digital media alone. Having some of the biggest titles in the world under their banner can only see this increase in future. It is, however, as yet unconfirmed that Kotick has developed a Scottish accent and built an immense vault filled with money that he swims in on a daily basis.

Source: GI.Biz

^{*Oh come now, that's never going to happen!}