Activision Sees Stagnation

Activision (ATVI Quote) poured some coal in investors' stockings Wednesday afternoon, warning that earnings and revenue for the next two quarters will be "significantly lower" than previously forecast guidance.

The video game-software maker blamed the disappointing outlook for the holiday and first calendar quarters on worse-than-expected sales and reorders of the company's titles, price cuts and weak sales overall in U.S. and European markets.

In a statement, Michael Griffith, CEO of Activision's publishing division, acknowledged that the holiday period wasn't yet over and that there was still uncertainty about how the season would turn out. ...