For calendar year 2011, Activision Blizzard's GAAP net revenues were $4.76 billion, as compared with $4.45 billion for 2010. On a non-GAAP basis, the company's net revenues were $4.49 billion, as compared with $4.80 billion for 2010. The company delivered record calendar year GAAP and non-GAAP net revenues from digital channels,(1) accounting for a record of more than 34% of the company's total net revenues.

For calendar year 2011, Activision Blizzard's GAAP earnings per diluted share increased to $0.92, as compared with $0.33 per diluted share for 2010. On a non-GAAP basis, the company's earnings per diluted share grew 18% to a record $0.93, as compared with $0.79 per diluted share for 2010.

For the quarter ended December 31, 2011, the company delivered GAAP net revenues of $1.41 billion, as compared with $1.43 billion for the fourth quarter of 2010. On a non-GAAP basis, the company's net revenues were $2.41 billion, as compared with $2.55 billion for the fourth quarter of 2010.

For the quarter ended December 31, 2011, Activision Blizzard's GAAP earnings per diluted share were $0.08, as compared with a loss per share of $0.20 for the fourth quarter of 2010. On a non-GAAP basis, the company's earnings per diluted share were $0.62, as compared with $0.53 for the fourth quarter of 2010.

The company reports results on both a GAAP and a non-GAAP basis. Please refer to the tables at the back of this press release for a reconciliation of the company's GAAP and non-GAAP results.

Bobby Kotick, Chief Executive Officer, Activision Blizzard, said, "As we continue to strengthen our leadership position in interactive entertainment, our proven management team and talented employees delivered another extraordinary year of outperformance. With better than expected net revenues, record earnings, record operating margins, and having generated nearly $1 billion in operating cash flow, Activision Blizzard continues to set the industry success bar."

Kotick continued, "Blizzard Entertainment's World of Warcraft® maintained its leadership position as the #1 subscription-based MMORPG around the world(2) and Activision Publishing's Call of Duty®: Modern Warfare 3® was the #1-selling game.(3) Skylanders Spyro's Adventure(TM) was the biggest new IP launch in Activision's history and it is on track to become an important and sustainable franchise. We launched our online service, Call of Duty Elite, which is one of the fastest growing premium online services ever created."

Kotick added, "Our extraordinary employees around the world are focused on making 2012 another great year for our audience and stakeholders. Blizzard Entertainment plans to have multiple highly-anticipated titles to release, including Diablo® III, and Activision Publishing expects to release a new Call of Duty game. In addition, Activision Publishing expects to continue to grow Call of Duty Elite and launch Skylanders Giants(TM)."

Selected Business Highlights:

Activision Publishing was the #1 console and handheld publisher in the U.S. and Europe for the fourth quarter of 2011 and the #1 console and handheld publisher in the U.S. for the calendar year.(3)

For the calendar year, in aggregate across all platforms in the U.S. and Europe, Activision Publishing's Call of Duty: Modern Warfare 3 was the #1 best-selling title in dollars, and Call of Duty: Black Ops was the #5 best-selling title in dollars.(3)

In November 2011, Call of Duty: Modern Warfare 3 became the first video game ever to surpass $775 million in retail sales in its first five days of release and the only entertainment property to cross the $1 billion mark in 16-days, eclipsing "Avatar's" 17-day record.(4)

As of January 31, 2012, more than seven million gamers have registered for Call of Duty Elite, including more than 1.5 million premium annual memberships the company has sold for the online service.(2)

Call of Duty: Modern Warfare 3 players logged more than 639 million hours of online gameplay through December 31, 2011.(5)