Activision is also focusing on broadening its video game audience, as demonstrated by its initiatives in downloadable content, e-sports tournament play, advertising, internet and television broadcasting and consumer products.

The company is also shifting its business strategy, first by extending game life and spurring engagement through periodic releases of additional downloadable content, and second by increasing digital revenue.

Activision is fighting the long-term secular decline in packaged games with increased online functionality. It is developing expanded, high-margin versions of its franchise games, developing “free-to-play” games for that growing market segment, and introducing new game concepts.

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