Skylanders has turned out to be a big money maker for Activision Blizzard. It’s partly responsible for Activision’s record Q3 2012 earnings, and will likely be a big contributor to the company’s fourth quarter earnings as well. Given the number of Skylanders games released within a relatively short period of time, brand fatigue similar to what happened with Guitar Hero becomes a potential issue. During Activision Blizzard’s earnings call, one investor brought this to Activision’s attention.
Unsurprisingly, Activision did not want to draw comparisons between Skylanders and Guitar Hero. Activision said it has a “pipeline of spectacular innovation” lined up for Skylanders. In normal speak, Activision is saying it is planning to bring new features to Skylanders before it can get stale. Activision is also leaning on the natural relationship that exists between toys and video games. As long as demand remains for one of those, Skylanders can theoretically survive.