Friday, December 16, 2005

Activision Casts Gloom On Gaming Industry

Santa Monica-base Activision cast a pall over the video game industry yesterday, after its announced late Wednesday that it is was cutting its estimates. Activision said that it expected that its earnings would be significantly lower that earlier estimates, saying that videogame hardware and software markets are weaker than expected. The company said that in addition to its company's portfolio of products not selling as well as it hoped, October/November software sales were down 20% according to NPD FunWorld, and its own December sales are tracking below expectations--despite its success with its Call Of Duty 2 title, which has been selling extremely well on Microsoft's new Xbox 360 platform. Activision said today that it's Call of Duty 2 title was the best selling Xbox 360 title both in units and dollars in November.

---