Company Outlook

On May 3, 2011, Activision Publishing released the Call of Duty: Black Ops Escalation content pack on the Xbox 360 video game and entertainment system from Microsoft. The pack also is expected to be available during the second quarter on Sony's PlayStation3 computer entertainment system and the PC. During the quarter, Activision Publishing also expects to release Transformers: Dark of the Moon, which will launch in connection with the release of the upcoming feature film of the same name; and Wipeout In The Zone, a Kinect-ready title for the Xbox 360 which is expected to be available in conjunction with the premier of Wipeout's summer television season.

The company plans to allocate the majority of its resources and focus toward opportunities which it expects will afford it the greatest competitive advantages and the greatest potential for best-in-class quality, high-margin digital growth, and long-term success. These opportunities include new content for Blizzard Entertainment's World of Warcraft, StarCraft and Diablo franchises, and its next-generation MMO; robust investment in forthcoming Call of Duty titles, including a micro-transaction game for China; the development of a best-in-class digital platform surrounding the Call of Duty franchise; a new property from Bungie; and Skylander's Spyro's Adventure,™ an innovative new universe bringing the world of toys, video games and the Internet together in an unprecedented way. These investments should better position Activision Blizzard for long-term growth and enable it to continue expanding its position as the largest digital publisher.

For calendar year 2011, Activision Blizzard is raising its outlook from the estimates it provided on February 9, 2011. Since Blizzard Entertainment has not confirmed a launch date for its next global release, the company's calendar year outlook at this time does not include a new game from Blizzard in 2011