Rebounding from posting a $72 million loss in Q4, *Activision Blizzard* turned in strong Q1 numbers. Net revenues came in at $981 million — 14 percent higher than it had originally forecast. Profits also exceeded expectations, rising to $189 million, or $0.14 per diluted share; Activision (NSDQ: ATVI) had forecast an EPS of $0.08. The publisher expects to bring in $1 billion worth of revenue in Q2.
Sticking with the formula: Activision told investors that sales of its signature franchises like World of Warcraft and Guitar Hero were fueling its better-than-expected growth — and if the formula’s not broke, why fix it? To that end, the publisher re-upped its World of Warcraft license in China, securing its spot in that marketplace for the next three years.
Activision also announced plans to release 3 new Guitar Hero spinoffs later this year: the highly anticipated DJ Hero (the turntable controller is pictured), Band Hero and Guitar Hero 5. It will be interesting to see how demand for these titles continues to hold up. GameStop execs recently gave the whole music game genre a vote of extreme confidence — but there are signs that the market is reaching its peak.
Photo Credit: USA Today