Kotick Discusses Activision's 'Rigorous, Measured' Portfolio Strategy

Following positive results for Activision, CEO Bobby Kotick said the company's upcoming line-up is carefully balanced -- with both "proven" franchises such as Guitar Hero and
Activision's Bobby Kotick says the publisher's about to release the strongest lineup of titles in its history. On the company's fourth quarter results call to investors, Kotick explained that most of these will be based on the company's existing "proven" franchises like Guitar Hero and Call of Duty. But Kotick also discussed the publisher's calculated risk approach to new intellectual properties. "A small minority consist of a select few wholly-owned and internally-developed new IP for which we have planned conservatively," he said, listing the upcoming Singularity and Prototype as examples. "If successful, [these] will prove [to have] a high rate of return on investment for the near and long-term," he added. Kotick described Activision's "rigorous, measured approach to launching new IP... the introduction of new IP is one of our industry's most difficult challenges," he said. "[We will] conservatively manage our portfolio risk profile by generating our majority of revenue... from more predictable and stable franchises that have served us well over long periods of time," the CEO concluded.

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