Activision has announced that, based on better than expected consumer response to its holiday slate worldwide, the company is raising its nett revenue and earnings per diluted share outlook for the third quarter, ending December 31, 2007 and fiscal year 2008. Activision’s revised outlook marks the highest nett revenues and earnings per diluted share in the company’s history for both the third quarter and full fiscal year.

For the fiscal third quarter, Activision expects record nett revenues of US$1.375 billion and earnings per diluted share of $0.76, an increase from the company’s prior nett revenues outlook of $1.225 billion and earnings outlook of $0.66 per diluted share.

The company’s per share outlook for the third quarter includes costs associated with its recently announced agreement to merge with Vivendi. Excluding the impact of equity based compensation expense, the company expects earnings per diluted share for the third quarter of $0.80, as compared to the company’s previous outlook of $0.70.

For the full fiscal year 2008, Activision expects record nett revenues of $2.45 billion and earnings per diluted share of $0.85, as compared to its previous outlook of nett revenues of $2.30 billion and earnings per diluted share of $0.75. The company’s per share outlook for the full fiscal year includes costs associated with its recently announced agreement with Vivendi.

“Activision is the number one US console and handheld publisher, according to the recently announced results from The NPD Group, for calendar 2007 through November,” said Robert Kotick, Chairman and CEO, Activision, Inc. “The company increased its market share for the eleven month period to a record 16.8%, a 7.9% increase over the same period last year. We continue to see strong audience excitement for our products and as a result we are again raising our financial outlook for the December quarter and the fiscal year.”