Activision Financials Improve Due to Modern Warfare 2

Kris Erickson • Apr 15, 2010 • Comments ()

Further evidence that the recession may be coming to an end, at least in the video game sector: Activision Blizzard (ATVI) reports that it will beat previous forecasts for the March 2010 quarter. The company now expects GAAP diluted earnings per share of $0.49 and non-GAAP diluted earnings per share of $0.72 as compared to its prior outlook of $0.47 and $0.70 respectively. Activision Blizzard expects to announce its March quarter 2010 financial results on May 6, 2010.

The increase in revenue was driven by strong demand for its core franchises World of Warcraft and Modern Warfare 2. "We are tracking ahead of our March quarter outlook due to strong global demand for Blizzard Entertainment's World of Warcraft and Activision's Call of Duty: Modern Warfare 2," stated Robert Kotick, CEO, Activision Blizzard. "We benefited from the record breaking launch of the Call of Duty: Modern Warfare 2 map pack, which was previously expected to launch in the June quarter. Additionally, certain operating expenses previously planned for the March quarter will now be incurred in the June quarter."

That Modern Warfare 2 map pack was fittingly called the Stimulus Package. It is currently available exclusively for the Xbox 360 console, but will launch for the PS3 on April 30th, 2010.