Activision CEO: Preorders in Decline
During a post-earning conference call, Activision CEO Eric Hirshberg said to investors that it’s “important to reset expectations as it relates to preorders overall.”
“You guys can see the same thing we see industry-wide, which is that there’s been sort of a secular downturn as it relates to preorders. We think that’s happening due to a number of factors: Things like increased digital consumption, particularly on the next-gen consoles; titles being widely available on day one; and the decline overall for demand of software on the previous gen consoles.” – Eric Hirshberg, Activision CEO
Hirshberg says that things like awareness and purchase intent have become more important than preorders. So what does this mean for us? No one can be entirely certain. Right now for a game like Call of Duty we see various editions gamers can purchase, which while it is a way to try to get more money for the game, it’s also a way to get gamers to pre-order the game because good luck finding those limited editions once the game is out.
This has been the case for more than a few years now, and other publishers have followed suit. We may see Activision back down from this approach and look for better ways to promote awareness. More television ads, open betas like Destiny, etc. Only time will tell, but I don’t think we will have to wait that long to see.