Activision expects Q1 2010 to be better than original forecast [Update]

Update: Apparently, Activision announcing that the Stimulus Pack helped change its fiscal outlook has caused EA director of corporate communications Jeff Brown to tell IndustryGamers that: "This is kind of like announcing - The racehorse I shot last month has won the Triple Crown!".

Ouch.

Original: Activision Blizzard has announced that its March quarter 2010 GAAP and non-GAAP net revenues are looking to be a lot better than was forecasted back in February when its full-year financials for 200 were released.

It's all thanks to the MW2 Stimulus Package DLC and World of Warcraft.

In February, the company's outlook for Q1 2010 was for a $1.1 billion in GAAP net revenues and GAAP earnings with $525 million in net revenue.

Apparently, sales of Modern Warfare 2 and World of Warcraft helped the company surpass what was originally expected.

"We are tracking ahead of our March quarter outlook due to strong global demand for Blizzard Entertainment's World of Warcraft and Activision's Call of Duty: Modern Warfare 2," stated Bobby Kotick.

"We benefited from the record breaking launch of the Call of Duty: Modern Warfare 2 map pack, which was previously expected to launch in the June quarter. Additionally, certain operating expenses previously planned for the March quarter will now be incurred in the June quarter.

"It is always helpful to begin a year with great momentum; however, we remain cautious about the economy and consumer spending and the fact that the majority of our games are not expected to launch until the fall. The company now expects GAAP diluted earnings per share of $0.49 and non-GAAP diluted earnings per share of $0.72 as compared to its prior outlook of $0.47 and $0.70 respectively." (2)

Activision will release its Q1 financial results on May 6.