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Activision defiant after profits slump

The US publisher also posted record net revenues for the quarter ending December 31st 2005 of $816.2 million, a 20 per cent rise on the previous year’s $680.1m. Net income was down to $69m from last year's $97m.

For the nine months up to the end of 2005, Activision reported a slight rise in net revenues to $1.28 billion compared with 2004’s $1.2bn.

“We were disappointed with our earnings performance this quarter, which was the result of weaker than expected market conditions in the US and Europe due to the transition from current-generation consoles to the next generation,” commented chairman and CEO Robert Kotick.

But despite the short-term losses, Kotick was confident that Activision’s long-term success was secure: “We are planning for market growth that historically follows the introduction of new console hardware.

“To leverage this future growth and prepare for fiscal 2008, which we expect will be the biggest year in Activision’s history, we will continue to focus on investment in our product development resources and IP portfolio.”

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