Our friends at Baird put out a new research brief that explained growth in Activision’s digital revenues for the second quarter:

  • Digital products generated $386 million (+16% Y/Y) in revenue, accounting for 60% of the total in Q2.
As digital sales increase for the major publishers, we’ll likely see a lot of new emerging distribution platforms both publisher-backed and independent. The market is wide open for additional third-party distributors to get into the space and the prevailing model of 30% of digital revenue going to distributors is much more palatable than the cut that physical retail stores currently take.