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The Activision Cash Cow Runs Dry

By NeonAnderson30-11-2012

Let me see your war face!

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.

Do you think Activision needs to change its business tactics? Share your thoughts below.

Comments (4)
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Posts: 351

I really hope they innovate somehow but I do not think it will happen. I dont think it will be exactly the same because Guitar Hero was more casual. Someone will topple them eventually, maybe it will be Respawn studios new game cause they invented CoDs award winning formula.

Posts: 241

It's been showing signs of stagnation for a while now. And @Stunt, that's what happened with Guitar Hero, which is now dead in the water.

Posts: 1548

Or Activision will get scared and try to sqeese it even more and will choke it completly.

Posts: 237

CoD will still sell more than 10 million for the next 4-5 years or so i belive. Its CoD.