Record-breaking Q2 Revenues, Guitar Hero III Launch Lead Activision to Increase Sales Estimates

Santa Monica-headquartered game publisher Activision reported its second quarter fiscal year 2008 results today, posting all-time high Q2 revenues of $317.7 million. A 69% year-over-year increase, the record-high revenues led to profits of $700,000 during the three months ending September 30, compared to a $24.3 million net loss during the same period last year.

Though they launched after the end of the second quarter, Neversoft, Vicarious Visions, and Budcat's versions of Guitar Hero III: Legends of Rock (PC, PS2, PS3, Wii, X360) brought in $100 million during their first seven days at retail for the biggest product launch in Activision history. The strong second quarter sales, combined with Guitar Hero III's launch and tomorrow's release of Infinity Ward's Call of Duty 4: Modern Warfare (PC, PS3, X360) led Activision to increase its fiscal year 2008 sales estimates to $2.07 billion.

Activision had already raised its fiscal year 2008 estimate to $1.87 billion following last quarter's record-breaking revenues as well. Though he wouldn't go into specifics on where the Guitar Hero franchise would go functionality-wise, Activision president Michael Griffith reaffirmed the publisher's plans to push out yearly Guitar Hero installments in a conference call on the quarterly results. "We're looking at a number of exciting new vectors and directions to take the franchise for next fiscal," he said.

Addressing a question on the possibility of a Guitar Hero MMO introduced in Asian markets like Korea, Activision CEO Robert Kotick said this would seem like a logical move for the franchise. "When we look at all the prioritization of opportunity we need to do, clearly, those are things that fall into the realm of opportunity for us for the future," he said.