Elevate your enterprise data technology and strategy at Transform 2021.

Video game publisher Activision Blizzard lowered the forecasts today for its 2009 earnings targets, sending its stock down in after-hours trading.

Activision shares dipped five percent and are now down about 1.4 percent to $9.48 a share. But the company reported better-than-expected earnings for the holiday quarter, which was driven by strong sales of its Guitar Hero World Tour and Call of Duty World at War games.

For 2009, the company forecasts it will earn 61 cents a share on revenue of $4.7 billion. That includes a $400 million currency impact and a $200 million reduction in revenues due to co-publishing and distribution businesses. Analysts had been expecting 67 cents a share and $5.17 billion in revenues for 2009, according to Reuters.

Fortunately for the industry, Activision Blizzard isn’t planning to join the ranks of companies doing “wholesale layoffs” this year, according to chief executive Bobby Kotick. Other companies such as Sega, THQ and Electronic Arts are in the midst of cutbacks.

In the fourth quarter, the Santa Monica, Calif.-based company lost $72 million, or 5 cents a share. If you take out one-time items, profit was 31 cents a share. Analysts expected 29 cents a share. Revenue was $2.3 billion in the quarter, above the expected $2.15 billion.

The Blizzard part of the company provides its financial backbone. Its World of Warcraft game is still a top seller, and it has 12 million paying subscribers.


GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
  • Newsletters, such as DeanBeat
  • The wonderful, educational, and fun speakers at our events
  • Networking opportunities
  • Special members-only interviews, chats, and "open office" events with GamesBeat staff
  • Chatting with community members, GamesBeat staff, and other guests in our Discord
  • And maybe even a fun prize or two
  • Introductions to like-minded parties
Become a member