Activision (NASDAQ:ATVI) reported a bit of a mixed bag with its preliminary fourth-quarter results. Should investors get in the game?

The video game publisher reported a wider-than-expected quarterly loss of $14.4 million, or $0.05 per share, compared to last year's loss of $9.1 million, or $0.03 per share. However, Activision's revenues were quite impressive, jumping 66% to $312.5 million.

In the conference call, Activision pointed out that it's the only company to be a top three publisher for both the Nintendo (OTC BB: NTDOY.PK) Wii and Sony's (NYSE:SNE) PlayStation 3. Anybody who knows anything about video games knows Wii's wild success has been a big surprise -- and rivals are of course looking to increase their exposure to the console, too. An interesting tidbit in Activision's press release is how much of its publishing revenues the PS2 represented in the quarter: a whopping 49%. The Wii, on the other hand, represented just 5% -- of course, those are revenues it didn't have at all last year, and as Wii momentum continues, that figure seems bound to expand.

Activision emphasized several game launches, many of which coincide with very successful existing franchises or summer blockbusters. Activision released Guitar Hero 2 for Microsoft's (NASDAQ:MSFT) Xbox 360 and Tony Hawk's Downhill Jam for the PS2, as well as games linked to hit sequels like Spider-Man 3 and Shrek the Third. It's also got some interesting game launches on the way, such as one linked to the upcoming Transformers movie and Guitar Hero 3. As much as investors might want to wonder about innovation coming from big companies like Activision and rival Electronic Arts (NASDAQ:ERTS), one can easily see how powerful some of these game launches might be.

Activision raised its revenue guidance to $1.8 billion for fiscal 2008, and that speaks to the strong slate of product launches it has at the moment. The company also expects to increase operating income by 100% this year, and forecast earnings of $0.45 per share, including the impact from share-based compensation. Furthermore, there's lots of cash on the balance sheet ($954.8 million at the moment), and that should help it make strategic moves as the market continues to grow and evolve.

It's easy to see why investors might be forgiving of Activision's wider fourth-quarter loss. After all, a couple of successful years seem to be on tap, with double-digit increases in earnings and revenues anticipated. Given the cyclical nature of video game publishers, it makes sense not to sweat the short term as long as the long term seems to be on track.

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Activision, Electronic Arts, and Nintendo are Motley Fool Stock Advisor recommendations. Microsoft is a Motley Fool Inside Value pick.   

Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a no-nonsense disclosure policy.