Transformers: The Game Helps Activision Fiscal 1Q Outlook

Tim Formas · 07-10-2007, 02:47 PM

Activision stated today that they expect fiscal first quarter earning results to exceed expectations, driven by movie-based video games such as Transformers: The Game. Activision states they have shipped more than 1 million units of the game.

http://www.reuters.com/article/topNe...0070710?rpc=44

Quote:

NEW YORK (Reuters) - Activision Inc (ATVI.O: Quote, Profile, Research) said on Tuesday it expects fiscal first-quarter results to exceed expectations, thanks to strong sales of its video games such as "Spider-man 3" and "Guitar Hero," sending shares up 2 percent.

The U.S. video game publisher, which trails only market leader Electronic Arts Inc. (ERTS.O: Quote, Profile, Research), said it shipped more than 8 million games in the quarter ended in June, which was ahead of some analysts' expectations.

Activision said it shipped over 4 million "Spider-Man 3" games, 2 million "Shrek the Third" games, about 1 million of its "Transformers: The Game," and more than 1 million "Guitar Hero II" games in the quarter.

"As a result, the company now expects that its financial results for the first quarter fiscal year 2008 will exceed its previously reported outlook on May 31, 2007," Activision said.

The company did not give specific new financial forecasts for the quarter, nor did it say how shipments compared with previous periods.

But total video game shipments were about half a million units ahead of estimates from Wedbush Morgan analyst Michael Pachter, who described the numbers as a "monster sell-in" in a note to clients.

Pachter raised his revenue estimate for the quarter to $450 million from $430 million.

On May 31, Activision had forecast first-quarter net revenue of $425 million and earnings per share of 3 cents.

Analysts surveyed by Reuters Estimates had expected a profit of 6 cents a share on revenue of $428.8 million for the period.

Pachter said the strong first quarter could also signal better-than-expected sales for the rest of the year.

We have not adjusted our estimates for the remaining three quarters of the year, but believe that the (first quarter) upside could lead to higher reorder volumes of each of the games listed in the back half of the fiscal year," he said.

He has a $24.50 price target on Activision shares.

The stock climbed 37 cents or 2 percent to $18.77 in morning trade on Nasdaq.

Activision, which publishes titles for video gaming consoles from Microsoft Corp. (MSFT.O: Quote, Profile, Research), Nintendo Co. Ltd.(7974.OS: Quote, Profile, Research) and Sony Corp. (6758.T: Quote, Profile, Research), expects to announce its first-quarter fiscal 2008 results in early August.

Finbot74 · 07-10-2007, 04:34 PM

It's sad that both the Transformers game and the Spiderman game both sucked and yet they still made money on it. I guess there will be no motivation to do better next time.

RedAssAg05 · 07-10-2007, 05:24 PM

My thoughts exactly...I grow so tired of being disappointed by the game industry...where have all the quality game designers gone? And why is no one asking these current designers WHY they decide to implement such unenjoyable gameplay features?! WHY?!

Liege Prime · 07-10-2007, 05:40 PM

Well, all in all I hope this does inspire them to make an un movie based sequal. I enjoyed it enough. Developing a game is very time consuming and costly, and not all developers get the time they want to make the game the way they want. Art takes a while to make but bug testing and programming can take much longer and movie titles are usually on a harsh deadline and the developers have little choice in the matter for when the product ships.

EvaUnit13 · 07-10-2007, 05:42 PM

Most movie games suck because they're rushed to meet the deadline. The way they make money is because of the hype of the movie gets people to look for merchandise from the movie

Twin Twist · 07-10-2007, 05:48 PM

Oh crap

my_time_soon · 07-10-2007, 08:18 PM

You know what the best part about The Transformers Game is? The mind blowing cut scenes. I like how they went for that classic (crappy) look. You know what I'm talking about. It looks like it belongs on the PS1/N64 but plays on the latest consoles. Oh yeah, and the free roaming arenas, I mean "enviroments". Playing this game is all it took for me to boycott anything else Activision makes. Seriously, how can you screw this game up. They had years to make it.

Soundatron · 07-10-2007, 08:32 PM

Regardless of how ungreat the game is me and everyone else on this board fell for it. Many movie based games are marketed well. See this is how it works for me. I was wanting to see the TF movie so bad I couldnt wait for it, wow a game is coming out cant wait to play it. I watch the movie, ya know that made me wanna play the game. Or I just bought SM3 last month, that made me want to go and watch the movie after playing it. Say what you will about the game. I for one like it, I still do now I dont love it but I do not loathe it. Nonetheless, we all fell for Activision's diabolical marketing scheme and if anything I'm cheering them on for making a monkey outta me. Because making a monkey out of someone is the greatest satisfaction anyone can recieve aside from sexual activity.

Liege Prime · 07-10-2007, 08:48 PM

I am pretty sure Activision did NOT have "years" to make this game. I am guessing a year tops, and even then they were probably slowly given info from the movie to integrate into the game. I don't know if a lot of people understand all the process and legallitys there are to making a movie licensed game. I am only defending Activision in that sense because they had a limited amount of time and came out with an average game. At least, average in terms of overall games, but better then average for me because of the TF content.

Another thing to remember is that this generation of game consoles can really take long to make a well done game. Gears of War was delayed for a year. DELAYED for a year! So you can imagine how many things you can't do or have to drop if you have a tight schedule that you HAVE to adhere to with a movie studio telling you to change things constantly. Had Activision been given another year and Microsoft kinda money, you'd see something much more special, but they didn't have that.

my_time_soon · 07-10-2007, 09:01 PM

I think there is a difference between "diabolical marketing" and "flat out lying". If you check out any game related site pre-release the most time anyone got to play Transformers was 10 minutes. Just enough time to run around and complete an objective. NEXT! What level were they introduced to? Starscream. Oh yeah, ofcourse the game is going to be cool if you can be Starscream right away. My whole gripe is they had plenty of time to develop a kick ass game. How can you go wrong with the Grand Theft Auto formula? Plus, check the trailers. Where do you see clarity like that anywhere in the game? Consumers shouldn't be made monkeys of. Especially when we can break a company just like that. Like I said before, I am not buying another Activision product again. I guess the lesson learned here is rent first buy later. Now ya'll excuse me while I dig bugs out of my fur and eat them.