Earnings Preview: Activision Blizzard

NEW YORK (AP) — Video game publisher Activision Blizzard Inc. is scheduled to report third-quarter earnings Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Activision is best known for games such as the popular "Guitar Hero" franchise, "World of Warcraft" and the "Call of Duty" series, whose upcoming installment, "Modern Warfare 2," could set entertainment records in the amount of money it rakes in the week it launches.

Even so, Activision can't completely escape the slump that's plagued the video game industry for much of this year. Before September, U.S. video game sales showed a double-digit percentage decline for six consecutive months, according to the NPD Group. Console price cuts and the fall launches of blockbuster games are helping improve things, but even with that the industry likely won't do as well this year as it did in 2008.

Like most video game companies, Activision brings in much of its revenue during the holiday season, so investors will be eyeing the company's outlook for the current quarter in the earnings report. That will show just how badly the recession, Wii fatigue and the delays of some hit games into 2010 has hurt the industry.