Activision to hit $1B revenue for current quarter
Game developers are discovering that mass appeal, casual market games is where the money is. Activision on Monday posted a small second quarter net profit, exceeding the expectations of investors. Activision’s main competitor EA reported a 195 million dollar loss during the quarter.
Activision claims its third quarter results will be even better, thanks in part to the performance of Guitar Hero III. In its first seven days at retail, Guitar Hero III generated more than $100 million, making it the second biggest game release of the year. Top sales honors still belong to Halo 3, which raked in $170 million on the first day, leading to $300 million throughout the first week.
Of course, the numbers of Guitar Hero III and Halo 3 are not directly comparable, as one game is offered on every system available, while the other is an exclusive Xbox 360 title. Both games shipped with more than one SKU, making it further unique from the traditional $60 software release.
While revenue for the second quarter amounted to $317.7 million, Activision expects its third quarter to hit $1 billion. The chart-topping staying power of the Guitar Hero franchise coupled with the thus-far positive reception of Call of Duty 4 give Activision a lot to look forward to during the upcoming holiday buying season.
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