There’s been a flurry of commentary recently on the recent earnings call by Activision Blizzard, where they provide some highlights on their third quarter performance. If you’re interested in reading through the entire transcript of the call you can find it at Seeking Alpha.
There are a couple of quick facts to pull out: Warcraft has dropped by nearly 2 million subscriptions to 10.3 million worldwide. Most of the loss is thought to be in China, an area which represents over 50% of the total subscriber base. The estimated rough split is approximately 5 million subscribers in the Far East, 3 million in US/Aus and 2 million in Europe/Russia.
There’s also the news on how much money Blizzard has made in the last quarter. The developer made nearly $300 million in revenue and $140 million in income – that’s a healthy profit margin of around 40% once tax gets factored in. Whichever way you slice the cake, Blizzard’s in a strong position considering that it’s not had a major release this year.
There’s only one snag with the information that’s been given to us. Although it’s easy to judge the overall performance of the company, it becomes difficult to judge the performance of Warcraft as an MMO. People will point to subscriber numbers going down and predict that this means doom for the game. That’s just simply not possible to do with the information we have available.



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