Activision-Blizzard September results reveals box sales paradigm

Reader Comments (Page 1 of 1)

11-06-2008 @ 3:09PM

Piper said...

Doesn't Sarbanes-Oxley (sp) or some such play into that as well? I know there is an issue of providing free upgrades if you aren't spreading the fee over time for computer companies. Yes, I know we pay a monthly fee, but that fee could be considered (for accounting purposes) for access to the servers, Whereas the initial purchase price gets spread over time to cover Blizzard's legal obligations about content, etc. upgrades?

Am I being daft here? :)

11-06-2008 @ 7:55PM

Durrn said...

It's a tax thing.

If you don't recognize the profits in the 2008-09 tax year you don't pay taxes on that profit till next year (which gives you a little bit more time to invest that money that you will have to pay in taxes and gin up some interest payments).

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