Guitar Hero II is getting considerable credit for helping Activision swing to a first-quarter profit. The company reported net income of $27.8 million, or $0.09 per share, compared to a net loss of $18.3 million, or $0.07 per share in the prior-year quarer. Meanwhile, revenue increased an impressive 163%, to $495.5 million.
Unlike its rival Electronic Arts
Activision certainly seems to have achieved a stellar position this year. The console upgrade cycle can be a real boon to game publishers, driving gamers to purchase new titles for their shiny next-generation consoles. In such a market, it helps to have the right games in the right place at the right time.
In its press release, Activision said that it's the No. 1 third-party publisher in the U.S. for both the console and handheld markets. The company cited NPD data that gauged its games' success on consoles and handheld platforms from Microsoft
While Electronic Arts discussed the success of its new Harry Potter title, Activision's not slacking when it comes to summer movie sequel tie-ins. Its Spider-Man 3, Shrek the Third, and Transformers games all made a big splash with consumers, according to the company's earnings release.
Meanwhile, Activision and Electronic Arts are also expected to gain an advantage during the holiday season, now that Take-Two Interactive's
Right now, Activision really seems to be on the ball, while Electronic Arts seems to have a lot of work to do. Given its rosy quarterly tidings, Activision seems like a particularly appealing investment in the video game market.
Play on, Fools:
- The recent quarter at Electronic Arts was just plain buggy.
- Meet Guitar Hero's looming competition.
- Activision plans on attending Monster Jam.
Activision, Electronic Arts, and Nintendo are Motley Fool Stock Advisor recommendations. Microsoft is a Motley Fool Inside Value pick. When you're not rocking out to Guitar Hero, try a free 30-day trial of either newsletter.