Noah J Nelson on Thursday, Nov. 7th
When is a billion dollars in sales not a billion dollars in sales?
Well that comes down to the difference between “sell-in” and “sell-through.” The big business news in gaming this week was the announcement that “Call of Duty: Ghosts” made a billion dollars in a single day, which would best the $800 million record set by “Grand Theft Auto V”.
Only it didn’t, not really.
Publisher Activision has shipped a billion dollars worth of merchandise to stores–that’s the “sell-in” part–but the $800 million that “GTAV” made was “sell-through”. That’s units actually purchased by consumers.
There’s a reason for all this financial fiddle-faddle, of course, and that would be the earnings call that Activision had with its investors yesterday.
For more on what all this means for the games industry grab some in-depth analysis from James Brightman of GamesIndustry International.