Cars are loading up on their chip content overall, and commercial developers and homeowners are beginning to add energy-smart building controls that rely on semiconductor content.
The firm has sold tens of millions of add-on toys which offer new content when they are placed into a RFID (radio-frequency identification) reader attached to a console.
Activision also highlighted the success of its Skylanders franchise - a series aimed at children in which add-on toys unlock new characters and content.
Now add on costs for content, such as those soccer goals and the cost of subsidizing those video phones-including a couple of extra batteries with each phone.
Watching content on your computer is one thing, but the ability to conveniently stream the same range of content on your TV (for free) could add a new level of competition that pay-TV providers are likely hoping to avoid.