SANTA MONICA, Calif. (AP) -- In a story May 8 about Activision Blizzard Inc.'s first-quarter earnings, The Associated Press reported erroneously that Sony Corp. makes the Wii U video game console. The device is made by Nintendo Co.
A corrected version of the story is below:
Activision 1Q profit up but holiday outlook cloudy
Video game maker Activision boosts 1Q profit, says 2013 holidays could be challenging
SANTA MONICA, Calif. (AP) -- Video game maker Activision Blizzard Inc. said Wednesday that its first-quarter earnings rose 19 percent, but cautioned that the holiday season could be more difficult than it expected because of uncertainty about the global economy, new games and new consoles.
The company raised its full-year forecast for adjusted earnings to 82 cents per share from 80 cents per share, but that still fell below the 85 cents that analysts expected. Shares fell in after-hours trading.
First-quarter sales were helped by revenue from the "StarCraft II: Heart of the Swarm" PC game and the online multiplayer game "World of Warcraft," but the latter saw a drop of about 1.3 million subscribers, to 8.3 million.
"While we have had a solid start to the year, we now believe that the risks and uncertainties in the back half of 2013 are more challenging than our earlier view, especially in the holiday quarter," CEO Bobby Kotick said in a statement.
Kotick said he was concerned about shifting release dates for competitors' games, the "disappointing" launch of Nintendo's Wii U game system, uncertainties about other consoles, declines in "World of Warcraft" subscriptions, and the weak global economy.
The company said that first-quarter net income rose to $456 million, or 40 cents per share, from $384 million, or 33 cents per share, a year earlier. Excluding one-time items, the company said it would have earned 17 cents per share.
Analysts, who usually exclude items from their calculations, expected 11 cents per share, according to a survey by FactSet.
Revenue rose to $1.32 billion from $1.17 billion a year earlier.
Activision predicted second-quarter profit of 5 cents per share, in line with analysts' forecasts.
In regular trading before the results were announced, Activision shares rose 32 cents, or 2 percent, to close at $15.26. In after-hours trading, they fell 81 cents, or 5.3 percent, to $14.45.