Activision Announces Next-Generation Console Lineup

SANTA MONICA, Calif., May 08, 2006: Activision, Inc. (Nasdaq:ATVI) today confirmed that the company is currently in development on three launch titles for both the PlayStation^® 3 computer entertainment system and Wii^TM (formerly code named Revolution) platforms. The company has been working closely with both Sony Computer Entertainment America and Nintendo on the development of "Call of Duty^® 3" and "Marvel: Ultimate Alliance," which will be released on both next-generation systems, as well as on the Xbox 360^TM video game and entertainment system from Microsoft. Activision also is developing two completely different games based on the Tony Hawk franchise -- "Tony Hawk's Project 8^TM" for the PlayStation 3 and Xbox 360, and "Tony Hawk's Downhill Jam^TM" for the Nintendo's new Wii system. In fiscal 2007, the company will release 10 games for the three next-generation platforms, including the titles listed above, as well as "X-Men: The Official Game" for the Xbox 360.

Additionally, at the 2006 Electronic Entertainment Expo, Activision will unveil a sneak peak from its highly anticipated "Spider-Man 3^TM" video game that demonstrates the in-game model of the renowned Super Hero and the power of next-generation technology. Activision's Windows PC lineup is led by id Software's "Enemy Territory^TM: QUAKE Wars," the highly-anticipated online team-based first-person action game.

These announcements underscore Activision's commitment to being a leader on all of the next-generation gaming systems. The company established an early leadership position on the Xbox 360 and, according to the NPD Group, has the #1 Xbox 360 game with "Call of Duty^® 2." Activision's next-generation slate is anchored by well-established, recognizable brands that the company owns or controls.

Activision also announced its game lineup for the 2006 Electronic Entertainment Expo, taking place at the Los Angeles Convention Center from May 10-12, 2006. The company's slate showcases games for both next-and current-generation consoles and Windows PC platforms.

"Activision will showcase a diverse and well-rounded game slate at this year's E3 convention," said Mike Griffith, President and CEO, Activision Publishing, Inc. "We expect that our well-established brands and multi-platform development strategy should continue to provide us with an advantage in the new console era. The next-generation console systems feature significant visual and audio enhancements that will continue making video games more accessible to audiences worldwide."

Next-Generation Launch Titles:

Activision's PlayStation 3 system launch lineup will take advantage of the hardware's multi-core processing to deliver smoother, faster gaming experiences that will closely resemble feature film quality values. The company's launch games for Nintendo's Wii system will fully utilize the Wii's revolutionary freehand-style controller by offering more immersive gameplay.

"Call of Duty 3," the follow-up to the #1 next-generation game, delivers the intensity of being closer than ever to the fury of combat during the battle for the Liberation of Paris, the most harrowing campaign of WWII, known as The Normandy Breakout. Through a seamless narrative, "Call of Duty 3" delivers the rush of unrelenting battle and breathtaking action of the Allied offensive that changed the fate of the world. (PlayStation 3 system, Xbox 360^® video game and entertainment system from Microsoft, Wii, Xbox, PlayStation^® 2 computer entertainment system; fall; not yet rated by the ESRB)

"Marvel: Ultimate Alliance" is an all-new action/RPG that features over 140 Marvel Super Heroes and Super Villains and the largest roster of comic book characters ever seen in a video game. Players get to create their Super Hero team from over 20 playable characters, including Spider-Man, Wolverine, Blade and Captain America, and through their actions determine the fate of both planet Earth and the Marvel Universe, which is revealed in one of several epilogues. (PlayStation 3 system, Xbox 360, Wii, PlayStation 2, Xbox, PSP^TM (PlayStation^® Portable) system, Nintendo Game Boy Advance, Windows PC; fall; not yet rated by the ESRB)

Designed and built exclusively for Nintendo's next-generation and handheld systems, "Tony Hawk's Downhill Jam" delivers a totally innovative and unique skateboard experience focused on head-to-head racing. The game allows players to feel the breakneck speed of downhill competition as they tear up the world's steepest terrains while performing tricks and outmaneuvering opponents in such locations as San Francisco, Machu Picchu and Hong Kong. Taking on the role of Tony Hawk or one of nine characters, players compete in time-based challenges in one of three gameplay modes, including race, trick and slalom. (Wii, Nintendo DS, Game Boy Advance; fall; not yet rated by the ESRB)

Reengineered from the ground up for the PlayStation 3 system and Microsoft's Xbox 360, "Tony Hawk's Project 8" immerses players in the definitive skateboarding experience using ultra-realistic graphics, enhanced physics and extremely responsive controls that simulate the feeling of skating with every trick and bail. The game challenges players to experience the intensity and pressure of skating against some of the world's top pros in true to life competitions as they aim to become the #1 skater. (PlayStation 3 system, Xbox 360, PlayStation 2, Xbox, PSP system; fall; not yet rated by the ESRB)

Powerhouse E3 Lineup:

Set to redefine online action gaming, id Software's "Enemy Territory: QUAKE Wars" is the ultimate team- and objective-based multiplayer experience. Developed by Splash Damage and executive produced by id Software, the first person strategic action game is set within the epic "QUAKE^®" universe in the year 2065 and pits the Allied troops of the Global Defense Force (GDF) against a new Axis of Evil -- the barbaric and technologically advanced Strogg. Built on id Software's new MegaTexture^TM rendering technology and featuring strategic team play, persistent character promotions and the universe's most powerful weapons and vehicles, "Enemy Territory: QUAKE Wars" transports players to the frontlines of an epic new war for Earth. (Windows PC; not yet rated by the ESRB)

Building on "The Movies^TM'" critically acclaimed gameplay, "The Movies: Stunts & Effects^TM Expansion Pack" ups the ante on movie production with the addition of stuntmen, death-defying stunts and new stunt double characters; a new particle effects engine that lets players enhance their scenes with incredible visual effects, including fireball explosions, shattering glass, smoke and steam; an all-new "Freecam Mode" that allows players to adjust the camera location, angle, field of view and path to create truly unique movies; and the addition of new miniature sets that let players create dramatic sweeping angles. (Windows PC; summer; Rated "T" (Teen -- Blood and Gore, Crude Humor, Mild Language, Sexual Themes, Use of Alcohol, Tobacco Violence) by the ESRB)

Based on DreamWorks Animation's upcoming film, "Over the Hedge^TM" takes players on an all-new adventure beyond the movie as they assume the roles of RJ the raccoon, Verne the turtle, Hammy the squirrel and Stella the skunk and turn a suburban neighborhood loaded with dangerous obstacles and traps into their personal playground. (PlayStation 2, Xbox, Nintendo GameCube and the PC have been rated E10+; Game Boy Advance, Nintendo DS have been rated E by the ESRB; available on North American retail shelves May 9)

"X-Men: The Official Game" catapults players into an original storyline that serves as a prelude to Twentieth Century Fox and Marvel Studios' upcoming film, "X-Men: The Last Stand," and allows them to command the distinct powers of Wolverine, Nightcrawler and Iceman as they face off against formidable enemies, battle through massive environments and embark on an epic quest to save mutant-kind. (Rated "T" (Teen -- violence) for Xbox 360, PlayStation 2, Xbox, Nintendo GameCube and PC by the ESRB; Rated "E-10+" (Everyone 10 and older -- fantasy violence) for the Nintendo DS and Game Boy Advance) by the ESRB; available on North American retail shelves May 16)

Building on last year's #1 poker title and the #1 brand in poker, "World Series of Poker^®: Tournament of Champions" takes a story-based approach, putting players on the Pro Circuit as a new pro and protege of Chris "Jesus" Ferguson. Players test their skills at the premier Circuit Events in hopes of qualifying for the winner-take-all, invitation-only Tournament of Champions at the Rio Resort in Las Vegas. Along the way, they face-off against more top pros than ever before, including Joseph Hachem, the 2006 World Series of Poker Main Event Champion, and Jennifer Tilly, the Academy Award-nominated actress and World Series of Poker bracelet holder, among others in hopes of bringing home the Tournament of Champions trophy. (Xbox 360, PlayStation 2, PC, PSP system; fall; not yet rated by the ESRB)

New Online Content:

Further expanding the experience of the #1 title for the Xbox 360, Activision will release four all new "Call of Duty 2" Xbox 360 multiplayer maps at E3 that unleash a blistering barrage of battle for gamers. The four maps will be available via Xbox Live^® online game network. The Bonus Pack features two maps set in Germany and will be released for free, while the Skirmish Pack contains two additional maps set in Russia and France and will be sold for 400 Microsoft Points^TM through Xbox Live^® Marketplace.

Video taped comments from Activision's CEO, Robert Kotick, concerning E3, the PlayStation 3 system, Nintendo Wii and the future of digital entertainment, are available at www.thenewsmarket.com/activision. Media can preview and request broadcast-standard video digitally or by tape at no cost from this site.

About id Software

id -- Freud's primal part of the human psyche and one of the hottest game shops on Earth -- has been rocking the gaming world from Mesquite, Texas since 1991. As a renowned leader in the industry, id Software forged such frenetic titles as "Wolfenstein 3D^®," "DOOM^®," "DOOM II^®," "QUAKE^®," "QUAKE II^®," "QUAKE III Arena^®," "QUAKE 4^®," "Return to Castle Wolfenstein^®," "DOOM 3^®" and "Enemy Territory: QUAKE Wars^TM." With intense graphics and mind-blowing action, id's games have helped redefine the modern video game, continually setting industry standards for technology and gameplay. Check out more about id Software at www.idsoftware.com.

About Marvel Entertainment, Inc.

With a library of over 5,000 characters, Marvel Entertainment, Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused on utilizing its character franchises in licensing, entertainment, publishing and toys. Areas of emphasis include feature films, DVD/home video, consumer products, video games, action figures and role-playing toys, television and promotions. Rooted in the creative success of over sixty years of comic book publishing, Marvel's strategy is to leverage its character franchises in a growing array of opportunities around the world. More information about Marvel can be found at www.marvel.com.

About Wii

Nintendo's next system, Wii (formally code-named Nintendo Revolution), will feature a controller designed to be used with either one hand or two -- a first in the videogame industry. When picked up and pointed at the screen, the controller gives a lightning-quick element of interaction, sensing motion, depth, positioning and targeting dictated by movement of the controller itself.

About Activision, Inc.

Headquartered in Santa Monica, Calif., Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $1.5 billion for the fiscal year ended March 31, 2006.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia, Spain and the Netherlands. More information about Activision and its products can be found on the company's World Wide Web site, which is located at www.activision.com.

The statements made in this press release that are not historical facts are "forward-looking statements." These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the Company's financial results are described in our filings with the Securities and Exchange Commission, including the Company's most recent Annual report on Form 10-K and Quarterly Report on Form 10-Q. Readers of this press release are referred to such filings. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Enemy Territory^TM: Quake Wars ® 2006 Id Software, Inc. All rights reserved. QUAKE and ID are registered trademarks of Id Software, Inc. in the U.S. and/or some other countries.

TM, ^®, Game Boy Advance, Nintendo GameCube, Nintendo DS and Wii are trademarks of Nintendo.

Activision is a registered trademark of Activision, Inc. and its affiliates. All other trademarks and trade names are the property of their respective owners.

Marvel, X-Men, Spider-Man and all related character names and likenesses thereof are trademarks of Marvel Characters, Inc., and are used with permission. ® 2006 Marvel Characters, Inc. All rights reserved. www.marvel.com. Super Hero(es) and Super Villains are co-owned registered trademarks.

Microsoft, Xbox, Xbox 360 and Xbox Live are registered trademarks of Microsoft Corporation in the United States and/or other countries.

Over the Hedge^TM DreamWorks Animation LLC

Lionhead, the Lionhead logo, The Movies, The Movies Stunts & Effects and The Movies logo are trademarks or registered trademarks of Lionhead Studios Ltd.

Tony Hawk is a registered trademark of Tony Hawk, Inc.

Activision and Call of Duty are registered trademarks of Activision Publishing, Inc.

These titles are not yet concept approved by Sony Computer Entertainment America.