The first Skylanders game came out in 2011 and was a success for Activision Blizzard. Not only were sales of the game itself strong, but the action figure add-ons that were required for the game sold well too.
Because of the game’s success, another game was released a year after. That too sold very well and many kids (or their parents) were still buying the action figures too. Because of the continuing demand for Skylanders, Activision Blizzard is planning to make the franchise an annual release.
Joshua Taub, Vice President of Skylanders Business told Joystiq that the company has “goals of making this a 10 to 20 year franchise that becomes a staple for kids“. The Skylanders franchise (both games and action figures) have earned Activision Blizzard over $500 million in revenue in just two years.
The one thing that they need to do is not oversaturate the market. The company fizzled out the Guitar Hero series releasing games and accessories every six months. Also, the Tony Hawk series was an annual franchise but eventually died out due to lack of innovation.