"SAN FRANCISCO (Reuters) - Activision Inc (ATVI.O) posted a quarterly profit on Thursday that blew past expectations as demand for its "Guitar Hero 3" and "Call of Duty 4" video games made up for a complete lack of new releases.
The two games, released late last year, drove Activision to a profit, excluding stock-based compensation costs, of just under $55 million, or 17 cents per share, more than triple the average expectation of 5 cents among Wall Street analysts on Reuters Estimates.
Revenue was $602.5 million, towering 93 percent above a year ago and burying the average estimate of $373.6 million.
"It's the ongoing popularity of 'Guitar Hero' and 'Call of Duty'. It just shows what can happen in terms of performance when you have blockbuster hit titles," said Colin Sebastian, an analyst with Lazard Capital Markets."
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