Activision (NASDAQ:ATVI), like all software publishers, doesn't like to waste time. Right on the heels of the MTV promotion that showcased Microsoft's (NASDAQ:MSFT) Xbox 360, the company issued a couple of press releases dedicating allegiance to Bill Gates and his technological gaming juggernaut (at least, Mr. Softy hopes it will be a juggernaut when it is released).
To begin with, Activision is betting that gamers will want more of the first-person-war-simulation genre, as well as another rad helping of the punk skateboarding category (kids still say rad these days, don't they?). If such a bet were correct, shareholders would certainly be as pleased as Pitfall Harry after a successful jump over a treacherous abyss. The publisher indicates that the Xbox 360 will be home to the battlefronts of Call of Duty 2 and -- here's where the rad comes in -- Tony Hawk's American Wasteland. Just like in the movie business, franchises tend to rule the kingdom of video games.
That isn't all, however. We have yet another sequel to look forward to, set in the ultra-popular Quake universe. Activision will have the privilege of aiding and abetting id Software's quest to get Quake 4 on the new machine. Hardcore gamers must be salivating at the prospects of the Doom 3 gaming engine being showcased on next-generation technology.
This is just the beginning, of course. Activision will announce many more titles for the Xbox 360 as time goes on; competitors such as Electronic Arts (NASDAQ:ERTS) and THQ (NASDAQ:THQI) will also be crashing the party (see this announcement as an example). The pipeline of products will benefit not only the publishers' bottom lines, but also will help Microsoft sell units (plus, as per the industry's business model, Microsoft will earn a royalty on the software sold). Both parties need each other, although the hardware developer arguably has a bigger interest in keeping the content developers excited, since it is only one of several platforms in the market. You can ask Nintendo how important it is to have publishers excited about the concept of programming content for its GameCube. The quality and/or depth of its library as compared with the ones sported by Sony's (NYSE:SNE) PlayStation 2 and the Xbox is perhaps one reason why that brand seems to be suffering in the marketplace.
Activision is off to a good start. Xbox 360 is the beneficiary of some cool hype right now, and it has committed itself to first-out-of-the-gate status. As long as the publishers continue to stand behind the platform -- and as long as Bill and his wizards surpass the expectations -- Microsoft might someday be able to fund a portion of its dividend checks with monies contributed by the Xbox division.
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Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.
