The European Commission has given permission for Vivendi to merge its videogame unit with Activision, approving the deal that was announced last December.
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Following guitar manufacturer Gibson's claims that the wildly successful Guitar Hero franchise violates a 1999 patent, Guitar Hero owner Activision has filed a lawsuit seeking to invalidate Gibson's patent. According to the suit, Gibson alleges that the series infringes on a patent for technology that simulates a concert performance via pre-recorded audio and a musical instrument.
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The official merger of Activision and the Vivendi games unit, including World of Warcraft publisher Blizzard, is set to complete on July 8 and will become the world's "most profitable" interactive entertainment company, according to Lazard Capital analyst Colin Sebastian. In a note received by GamesIndustry.biz today Sebastian is raising the company's target price from USD 33 to USD 40 per share, with estimated earnings per share of USD 1.45-1.60 through fiscal 2009.
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Activision has revealed Tony Hawk will not be coming to consoles later this year, and will only show up in fiscal 2010 (which starts April 2009). There will be an exclusive Tony Hawk game coming to the DS later on in 2008, which Activision comment "utilizes new technology not yet seen on the DS". The company mention that they are planning on "reinventing Tony Hawk from the ground up," and revealed the next console game will be a huge step forward from the last.
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Sales rise to $312.5 million but loss grew to $14.4 million. Deutsche Bank says larger loss is a "non-factor." Reiterates "Buy" rating with target at $23. Kaufman Bros believes ATVI will have strong momentum from Guitar Hero 2 (Xbox 360), Spider-Man 3 and Shrek games.
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Following strong financial results in the past couple of weeks from both Activision and Vivendi Games, one analyst has released his prediction that following the planned merger of the two companies, fiscal 2009 profits could add up to as much as USD 1.38 billion.
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In an earnings conference call after the release was distributed, Activision Publishing CEO Mark Griffiths laid out the slate of new games that gamers can expect in the company's fiscal year 2009 (starting April 1, 2008). He said, "There will be a full slate driven by our strongest brands."
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"Activision announced today at the GDC in San Francisco, USA that the new Call of Duty only 'Modern Warfare 2'is to be called. They dropped the line Call of Duty in the title. This is the official title of the game. After all the hassle to the title Bioshock, Activision keeps it clear and confirmed this immediately."
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"There is still one unknown project," Blizzard executive VP Rob Pardo revealed to OnlineWelten.com during the Blizzard Worldwide Invitational. "We have another development team." Pardo affirmed that Blizzard's recent job listings for an "unannounced next-gen MMO" were not related to Diablo III. The company had previously stated that the project was not a World of Warcraft expansion either.
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"Activision has announced that its Guitar Hero franchise has set an industry record, surpassing USD 1 billion in North American retail sales in just 26 months. Since its initial release in fall 2005, the Guitar Hero franchise has sold in excess of 14 million units in North America alone, according to The NPD Group."
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