The Activision Cash Cow Runs Dry
Following in the footsteps of economics 101, Activision’s ‘cash cow’ is showing signs of ‘stagnation’. Joystiq reports that the sales figures of Call of Duty: Black Ops 2 indicate a 15 percent drop in sales when compared to Modern Warfare 3, which was also 5 percent lower than the first Black Ops.
Classical economics teaches that the usage of cash cows is limited to the short-term as consumers will get tired of the same product repackaged and resold year after year. This is the first indications of that kind of consumer reaction towards the Call of Duty franchise. Classical economics would also warn that if Activision continues this trend of yearly Call of Duty titles, they could eventually find complete and utter market failure. It is unlikely though that Activision is worried yet as Black Ops 2 is till breaking revenue sales records.
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