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From the News Desk
Thursday, 31. January 2008

World of Warcraft Helps Vivendi Reach the Billion Mark


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French media conglomerate Vivendi has reported its full-year revenues for 2007. The gaming division saw a record USD 1.51 billion in revenue, a 26.6 percent jump over the previous year's USD 1.15 billion haul. However, for the fourth quarter, the division saw sales slip 7.4 percent to USD 447.8 million.

Vivendi's Blizzard Entertainment and its hugely successful World of Warcraft MMO once again was a major force in driving results. Blizzard's revenue were USD 1.2 billion, 58 percent higher than they were in 2006. WoW’s subscription base increased by 2 million over the course of the year, reaching the 10 million-subscriber mark. US subscribers pay about USD 15 per month for a WoW subscription.

Vivendi says Sierra Online and Vivendi Games Mobile showed some growth over the year, but admitted that its Sierra Entertainment release slate of Crash of the Titans, Spyro: The Eternal Night, F.E.A.R. expansion and compilations, Timeshift and World in Conflict couldn't compete with 2006's releases of Scarface, Ice Age 2, Eragon, Spyro: A New Beginning and F.E.A.R, leading to a sales decline in that division.

Vivendi's non-Blizzard game divisions--Sierra Entertainment, Sierra Online and Vivendi Games Mobile--saw their revenue sink 29 percent year on year to USD 303 million. For the fourth quarter, Blizzard's sales rose 19 percent to reach USD 276 million while non-Blizzard game revenue slid 32 percent to USD 172 million.

According to Vivendi, "each of the business segments was impacted by unfavorable currency exchange movements."




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