Updated from 10:05 a.m. EDT
The computing gaming sector got a shot in the arm Thursday when
forecast better-than-expected first-quarter results thanks to strong performance from its
Call of Duty
Video game makers such as Activision,
has reached gamers' wallets. Even Activision, which has largely avoided the
, reported a $72 million loss in its fourth-quarter results, underlining the challenges facing the industry.
The Santa Monica, Calif.-based firm had
first-quarter revenue of $860 million and earnings of 8 cents a share, but now says that it is "tracking ahead" of its prior outlook. Excluding charges, the company had expected revenue of $550 million and 3 cents a share. Analysts had estimated revenue of $569.32 million and 4 cents a share.
"Global consumer response to the
Call of Duty
franchises and Blizzard Entertainment's
World of Warcraft
remains strong despite the challenging economic environment," said Activision CEO Robert Kotick in a statement. "We exceeded our quarterly financial goals as the video game market continues to grow and our franchises continue to perform."
Kotick added that the upswing in demand bodes well for upcoming Activision titles such as
X-Men Origins: Wolverine
Ice Age: Dawn of the Dinosaurs
Guitar Hero Smash Hits
Investors responded positively to Activision's rosier outlook. The stock was recently up 1.9% to $10.22.