Activision records $15m third quarter profit

Guitar Hero and Call of Duty titles have helped Activision to a profit of USD 15 million for the third quarter of the year, compared to a loss of USD 108 million for the same period last year.

Net revenue was USD 703 million, with Guitar Hero 5, Marvel: Ultimate Alliance 2 and legacy sales of Call of Duty, World of Warcraft and previous Guitar Hero titles the highlights during the period, said the publisher.

"Year to date through September 30, the Guitar Hero franchise was the number one best-selling third-party franchise in North America and Europe," offered Robert Kotick, CEO of Activision. "For the month of September, sales of music games in the US increased 72 per cent in dollars year-over-year, which demonstrates the sustained interest in this new and important game category.

"During the quarter, we continued to see strong sales for Call of Duty World at War and associated map packs, which year to date have sold more than seven and half million units. Despite a challenging overall software market, the company grew its quarterly US share by 3.1 points over the previous year to 13.3 per cent." He added: "This success is the result of our focus on delivering the highest game quality and the best entertainment experiences possible for our consumers."

Releases in the fourth quarter include DJ Hero, Band Hero, Tony Hawk RIDE and the highly anticipated Call of Duty: Modern Warfare 2, which Kotick told investors "could be the largest entertainment launch of the year."

"Even though there is a great deal of economic uncertainty in the marketplace and the consumer risks around the holiday season are high, we believe that our strong balance sheet and solid cash position, coupled with our leading franchises, operational capabilities and broad global reach will enable us to take advantage of the long-term opportunities afforded by our industry," said Kotick.