Activision Expects Second-tier Games to Suffer in Tough Holiday Market

Activision says the growth of retail videogame shelf space should help the industry's chances of weathering the economic downturn this holiday, but warns that second-tier games may bear the brunt of the financial malady.

"Publishers with top-selling titles will likely benefit disproportionately in this quarter," said Activision Publishing CEO Mike Griffith.

"Retailers are ordering less up front, and are focusing on chasing the winners," added Griffith, who noted that stores are "being more cautious with second-tier titles."

The CEO was unsurprisingly optimistic about his company's chances, with new Guitar Hero, Call of Duty and World of Warcraft titles debuting in time for the holiday season.

"Over the past year, global retailers have allocated 40% more in-store space to the videogame category at the expense of other categories," said Mike Griffith. "Most of this has been dedicated to the music genre."

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