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Activision's Got Game

The video game-software maker jacks up earnings and revenue guidance as holiday sales boom.

Video game-software maker

Activision

(ATVI) - Get Activision Blizzard, Inc. Report

substantially raised third-quarter and full-year guidance late Wednesday, citing stronger-than-expected holiday sales.

Activision said that for the third quarter ending Dec. 31, the company expects earnings to reach 67 cents a share on revenue of $480 million -- a major markup from previous guidance of 45 cents a share on revenue of $390 million.

Wall Street analysts polled by Thomson First Call were expecting earnings of 45 cents a share on revenue of $390.6 million for the all-important December quarter.

The new target represents a 60% year-over-year increase in earnings per share and 27% increase in revenue.

Santa Monica, Calif.-based Activision reiterated its previous outlook for the fourth quarter, which had projected a loss of 5 cents a share on $114 million in revenue.

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The strong third-quarter results boost Activision's full-year guidance to earnings of 56 cents a share, up from previous guidance of 34 cents a share, and revenue of $870 million, up from previous guidance of $780 million. Analyst estimates call for earnings of 35 cents a share on $782.6 million in revenue.

Activision cited strong sales of its

True Crimes: Streets of L.A.

game,

Tony Hawk's Underground

and

Call of Duty

.

Shares of Activision soared recently to $17.27 in after-hours trading after falling 7 cents, or 0.4%, to close Wednesday at $16.41.