Drop in Activision Blizzard's earnings isn't as severe as expected

Although Activision Blizzard managed to surpass both analysts and its own expectations for the third fiscal quarter, the company still recorded reduced revenues and profits year-over-year. Analysts had previously estimated that the company would see earnings of $0.04 per share, while Activision Blizzard itself was forecasting $0.03. The true figure turned out to be more in the $0.08 range -- although its still a far cry from $0.15 per share year-over-year. The company's CEO Bobby Kotick noted that the increased competition and uncertainties of the upcoming console transition are providing a "unique and challenging landscape" for traditional video games -- although he is confident that the company can navigate the challenges successfully. Of course, with the release of Call of Duty: Ghosts this month, and the recent repurchase transaction with Vivendi, Activision Blizzard is expecting the current quarter to look a whole lot different. Notably, while the World of Warcraft MMO once again lost subscribers, the drop wasn't as severe as previous quarters. The game now has 7.6 million subs, down from 7.7 million last quarter, and 8.3 million the quarter before that. As a result, the company has raised its previous estimates for the full fiscal year, to revenues of $4.29 billion, up from $4.25 billion, and earnings per share of $0.89, up from $0.85-0.87. For the third quarter ended September 30, 2013, Activision Blizzard recorded revenues of $657 million, down from $751 million year-over-year.