Activision bullish on video game sector

Video game publisher Activision boosted its revenue outlook for the fourth quarter and fiscal 2007 due to greater visibility of Sony's PlayStation 3 release affecting Activision's European distribution business.

Sony's PS3 console is scheduled to be released in Europe on March. 23

Activision increased its revenue outlook to $200 million from its earlier guidance of $170 million. That compares with analysts' expectations of $176.3 million in revenue for the fourth quarter.

Excluding the impact of equity-based compensation, the company expects to lose 8 cents a share, compared with its previous outlook of a loss of 9 cents a share. Analysts had been expecting a loss of 6 cents a share.

Shares of Activision were up 16 cents or 0.9% to $17 in extended trading.

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