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Activision Raises Financial Outlook

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Activision announced today it is raising its financial outlook for its third quarter as well as fiscal year 2008, based on better-than-expected consumer response to its holiday lineup.

For the quarter ending December 31, the company adjusted its net revenue expectations to $1.375 billion with earnings per diluted share of $.76, an increase from prior projections of $1.225 billion and $.66 per diluted share. The revised outlook includes costs associated with Activision’s recent merger with Vivendi.

For the full 2008 fiscal year, Activision is now projecting net revenues of $2.45 billion and $.85 per diluted share, up from earlier estimates of $2.3 billion and $.75 per diluted share, and again includes costs associated with the merger.

“Activision is the number one U.S. console and handheld publisher, according to the recently announced results from the NPD Group, for calendar 2007 through November,” said Activision CEO Robert Kotick. “The company increase its market share for the eleven month period to a record 16.8 percent, a 7.9 percent increase over the same period last year. We continue to see strong audience excitement for our products and as a result we are again raising our financial outlook for the December quarter and the fiscal year.”

In an earlier announcement, Kotick credited the recent Guitar Hero III: Legends of Rock and Call of Duty 4: Modern Warfare as the main reasons for Activision’s ongoing publishing dominance in the U.S.

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