Activision generated $4.5 billion (£2.75bn) in net revenues during 2013, down from the $4.8 billion (£2.9bn) it made during 2012.
The publisher made $1.56bn (£955m) - 34 per cent - of its total revenues from digital channels.
Total net income for the year hit $1 billion (£612m), also down from the profits it posted in 2012 of $1.1bn (£673m).
For the three months ending December 31st, Activision made $1.5 billion (£918m) in net revenue, beating previous forecasts of $1.2bn (£735m). This was still down on the previous year's total of $1.7bn (£1bn) however.
The publisher noted top selling games including Call of Duty: Ghosts, Call of Duty: Black Ops II and Skylanders Giants as key factors in beating fits forecasts.
To date, Activision said it had sold 175 million Skylanders toys worldwide, generating more than $2 billion (£1.2bn) in worldwide sales during the franchise's lifetime.
Total net income however stood at $174 million (£106m), down from the $354m (£217m) generated during the same period in 2012.
"2013 was a transformational year for Activision Blizzard and for our industry. Our transaction with Vivendi returned us to independence and eliminated the challenges and constraints of being a controlled company," said Activision CEO Bobby Kotick.
"The continued success of our games delivered better-than-expected financial results, including stronger net revenues and earnings per share, and over $1.26 billion in operating cash flow.
"Over the last five years, through dividends and share buybacks, we have returned almost $10 billion dollars to our shareholders and today we announced an increase to our annual dividend and repayment of $375 million of debt. As we look to our newly independent future, we expect to continue to deliver strong returns to our stakeholders through the development and sale of the world’s best games, as we have for more than 20 years."