text: Costs and Expenses
text: Cost of Revenues
text: The following tables detail the components of cost of revenues in dollars (amounts in millions) and as a percentage of associated net revenues:
text: Cost of Revenues—Product Sales:
text: The decrease in product costs for 2019, as compared to 2018, was due to the decrease in product sales, primarily associated with the Destiny franchise (reflecting our sale of the publishing rights for Destiny to Bungie in December 2018).
text: The decrease in software royalties, amortization, and intellectual property licenses related to product sales for 2019, as compared to 2018, was primarily due to a decrease of $133 million in software amortization and royalties from Activision, primarily due to the Destiny franchise. The decrease was partially offset by:
text: higher software amortization and royalties for Call of Duty: Black Ops 4, which was released in October 2018, as compared to Call of Duty: WWII, which was released in November 2017; software amortization and royalties from Sekiro: Shadows Die Twice, which was released in March 2019; and higher software amortization and royalties for Call of Duty: Modern Warfare, which was released in October 2019, as compared to Call of Duty: Black Ops 4.
text: Cost of Revenues—Subscription, Licensing, and Other Revenues:
text: The decrease in game operations and distribution costs for 2019, as compared to 2018, was primarily due to a decrease of $50 million in service provider fees such as digital storefront fees (e.g., fees retained by Apple and Google for our sales on their platforms), payment processor fees, and server bandwidth fees.
text: The decrease in software royalties, amortization, and intellectual property licenses related to subscription, licensing, and other revenues for 2019, as compared to 2018, was primarily due to:
text: a decrease of $122 million in amortization of internally-developed franchise intangible assets acquired as part of our acquisition of King; a decrease of $36 million in software amortization and royalties from Activision, driven by the Destiny franchise, partially offset by software royalties on Call of Duty: Mobile, which was released in October 2019; and  lower amortization of capitalized film costs due to the release of the third season of the animated TV series, Skylanders™ Academy, in September 2018, with no comparable release in 2019.

Table:
Year Ended December 31, 2019
% of associated net revenues
Year Ended December 31, 2018
% of associated net revenues
Increase (Decrease)
Cost of revenues—product sales:
Product costs
$656
33%
$719
32%
$(63)
Software royalties, amortization, intellectual property licenses
240
12
371
16
(131)
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs
965
21
1,028
20
(63)
Software royalties, amortization, intellectual property licenses
233
5
399
8
(166)
Total cost of revenues
$2,094
32%
$2,517
34%
$(423)

Questions:
question: What is the percentage change in product costs between 2018 and 2019?
answer: -8.76
derivation: (656-719)/719
scale: percent
question: What is the percentage change in game operations and distribution costs between 2018 and 2019?
answer: -6.13
derivation: (965-1,028)/1,028
scale: percent
question: What percentage of total cost of revenues in 2019 consists of product costs?
answer: 31.33
derivation: (656/$2,094)
scale: percent