GAMING NEWS and REVIEWS


Microsoft touts Xbox One as an all-in-one entertainment experience

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Microsoft thinks it has the one.

The company unveiled the Xbox One, an entertainment console that wants to be the one system households will need for games, television, movies, sports and other entertainment. It will go on sale later this year, for an undisclosed price.

For the past two years, Microsoft's Xbox 360 has outsold its rivals. But it's been eight years since that machine came out, and Microsoft is the last of the three major console makers to unveil a new system. In those eight years, Apple launched the iPhone and the iPad, "FarmVille" rose and fell and tablets began to threaten desktop computers, changing how people interact with games and beyond.




Now, the stakes are high as Microsoft, Sony and Nintendo are all using their latest machines not only to draw gamers but also to command the living room. The goal is to extend their reach beyond loyal legions of hardcore gamers and to become as important to our lives at home as smartphones have become to our lives on the go.

Don Mattrick, Microsoft's president of interactive entertainment business, said the company has spent the past four years working on an "all-in-one home entertainment system."

At an hour-long unveiling at the company's Redmond, Wash., headquarters on Tuesday, Microsoft executives used voice controls to switch back and forth seamlessly between watching live TV, listening to music, playing a movie and browsing the Internet - all while running apps for stuff like fantasy football and Skype chats on the side of the screen.

"It really extends the home entertainment experience," Gartner analyst Brian Blau said.

He said the console seems to appeal to "more than just a core gamer in the family" and should be of interest to all types of audiences, from sports players to TV viewers to those who are "social and want to share things."

The Xbox One unveiling follows Nintendo Co.'s launch of the Wii U in November and Sony Corp.'s tease in February of the upcoming PlayStation 4. Each of the new consoles has shifted away from simply serving as gaming machines, as they incorporate streaming media apps and social networking features.

People will be able to connect their cable or satellite set-top box and watch TV through the Xbox One. It will have its own channel guide and allow viewers to change channels by voice command.

Senior Vice President Yusuf Mehdi demonstrated how the console switched quickly between channels after saying show names such as "Mary and Martha" or commands like "watch MTV." His voice command of "What's on HBO?" brought up the channel guide for HBO.

"No more memorizing channels or hunting for the remote control," Mehdi said.

The interface for the TV goes well beyond the functionality in the Wii U, which still requires users to press buttons to change the input source on the TV. Xbox One seamlessly flipped between games, movies and TV shows with voice commands.

In addition to the console, Microsoft unveiled a new version of its camera-based Kinect system with better motion and voice detection, including the ability to recognize faces, tell if you're smiling or talking and gauge your heart rate. In a demonstration, the new sensor detected up to seven people in front of it. Microsoft said the new Kinect will be included with the Xbox One and is deeply integrated into the system, but it won't necessarily always be watching users in their living rooms.

"There's the ability for you to manage the privacy settings so you can turn it off," Marc Whitten, Microsoft's chief product officer of interactive entertainment business, said in an interview in his office after Tuesday's presentation. "Just like the 360, the biggest thing for us is that you are in control of your privacy."

The company also introduced a more ergonomic Xbox controller, with a slightly different layout from the Xbox 360 controller and trigger buttons that vibrate. The new console will also add the ability to play Blu-ray discs, matching what Sony has in its older PlayStation 3.

The Xbox One won't require a constant connection to the Internet, but having it will be useful for many of the gaming and entertainment features. The Xbox has been popular largely because of its Xbox Live service, which lets users play games online with other players with annual plans that cost as much as $60 a year.

"The box wants to connect to the Internet," Whitten said. "That said, we understand the Internet is flakey. It doesn't always work. We want to make sure you can still play your games, watch movies and watch TV if the Internet is down."

Despite talk that Microsoft might restrict the use of games previously owned by others, the company confirmed that the Xbox One will indeed play used games, but it didn't provide details on how that would work. It said games for the Xbox 360 won't work on the new system because the underlying technology is different, though the company said it will continue to make games for the older machine. Whitten said the Xbox 360 "is going to be incredibly vibrant for some time to come."

Among the games previewed for Xbox One were the military shooter "Call of Duty: Ghosts" from Activision Blizzard Inc., soccer extravaganza "FIFA 14" from Electronic Arts Inc. and racing simulator "Forza Motorsport 5" and time bender "Quantum Break," both from Microsoft Game Studios. Microsoft said more games will be shown at next month's E3 video game conference in Los Angeles.

The company said there will be more than 15 games available exclusively on the Xbox One in its first year, eight of them new franchises. In recent years, the Xbox has been the exclusive home to such popular gaming franchises as sci-fi shooter "Halo" and alien shoot-'em-up "Gears of War."

Wedbush analyst Michael Pachter said Tuesday's presentation was more general than what Microsoft will likely give at E3, where games will be central as thousands of game industry insiders, bloggers and journalists gather for the annual industry conference.

"They didn't focus on games," he said. "They focused on everything else."

That everything else includes a multiyear agreement between Microsoft and the National Football League to develop new interactive viewing experiences for pro football games through such products as the Xbox One and Microsoft's Surface tablet computer. Fans will be able to watch games, chat with other fans, view statistics, access highlights in real time and gather fantasy information about players and teams - all on a single screen. For those who prefer multiple screens, fans can get an even deeper experience on mobile devices such as tablets.

Microsoft is also branching into creating original content beyond games, following the trend of other technology companies such as Amazon.com Inc. and Netflix Inc. Director Steven Spielberg will produce a TV series based on the "Halo" games.

The original Xbox debuted in 2001, and its high-definition successor premiered in 2005. The Xbox represents a small fraction of Microsoft's overall revenue, but it is an important consumer-facing business for Microsoft and offers a way to direct traffic to other Microsoft-owned services, including Skype. Microsoft's stock fell 23 cents, or less than 1 percent, to close Tuesday at $34.85.

Nintendo kicked off the next generation of gaming in November with the launch of the Wii U, the successor to the popular Wii system. The Wii U features an innovative tablet-like controller, though its graphics is on par with the previous-generation Xbox 360 and Sony's PlayStation 3. Nintendo said the console sold just 3.45 million units by the end of March, well below expectations.

Sony was next, teasing plans for its upcoming PlayStation 4 - without showing the actual box - at a February event in New York. The reaction to that console, which featured richer graphics and more social features, was mixed. The PS4 is expected by the holidays.

Microsoft didn't waste any time showing off the Xbox One console, new Kinect sensor and Xbox controller at the beginning of Tuesday's presentation.





Samsung Galaxy S4: Hands on

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The Galaxy S 4 has what you'd expect from a new smartphone a bigger screen and a faster processor. But Samsung didn't want to stop there when it presented the successor to its hit Galaxy S III. It loaded the new phone with a grab-bag of features that don't come together as a pleasing whole. The new additions could confuse users.
The Korean company revealed the S 4 for the first time Thursday at an event in New York, and provided reporters with some hands-on time with pre-production units. The final phones will be on sale in April to June period from Verizon Wireless, AT&T, Sprint Nextel, T-Mobile USA, US Cellular and Cricket, the company says. If history is any guide, even smaller phone companies will get it, if not right away. The phone companies will set the prices; expect this phone to start at $200 with a two-year contract.
Samsung has competent engineers, and hardware-wise the S4 is a solid successor to the III. The screen is slightly larger, at 5 inches on the diagonal compared to 4.8 inches for the III and 4 inches for the iPhone 5. It sports a resolution of 1920 by 1080 pixels, as much as you'd find on a high-definition TV set. This should mean that the resolution chase is over in the smartphone area: the eyes just can't discern any more pixels on these small screens. Competing top-line Android phones already have the same resolution, so Samsung isn't breaking new ground here.
The bigger screen is crammed into a chassis that's actually a hair narrower and thinner than the S III's. This is quite a feat. Samsung shrank the frame surrounding the screen to make room. Shrinking other internal components allowed it to make the battery 20 percent larger than III's, but Samsung isn't saying whether that translates into longer battery life - the added battery power could be eaten up by software and hardware changes.
The body is still dominated by softly molded plastic, and the S4 doesn't really advance the aesthetics of its predecessor the way competitors Apple, Sony and HTC have done with their latest phones. Apple and HTC, in particular, have put a lot of sweat into machining metal into jewel-like enclosures; Samsung doesn't seem to care all that much about looks.
Samsung does care about trying to push the envelope on what the phone does, but it may have poked through the envelope, tearing a hole or two in it. It's probably not a disaster, because most of its features can be turned off, but first-time users could be confused.
For one thing, Samsung is taking the whole "touch screen" thing further by now sensing when the user's finger is hovering over the screen. In other words, you don't even need to touch the phone to make it react. Hovering over a thumbnail of a picture in the Gallery will reveal a bigger thumbnail, and hovering over one email in a list will show a preview of its first lines.
The idea is similar to the "mouse hover" feature on a PC, which sometimes reveals things before the mouse is clicked. Implementing it on a smartphone is trickier, though. On the PC, you have to use the mouse, so you'll discover the hover functions in the normal course of use. But since the feature is new in a smartphone and there's normally no reason to have your finger hovering over the screen, users are likely to discover this feature by chance. That wouldn't be so bad if all applications responded to hovering in a consistent manner, but very few applications react to it all. On the S4, the "Email" app will show previews, but the "Gmail" app won't. The built-in "Gallery" app will show picture previews, but other photo apps won't. I suspect users will get tired of trying to hover with their fingers and give up on the whole thing.
The hovering feature also sets the phone up for another problem. In my testing, I found that the phone sometimes registered a close hover as a touch. In other words, the screen was overly sensitive, thinking I was touching it when I wasn't. This may be fixed by the time the phone is in production, but it's potentially an annoying issue.
The S 4 tries to divine your intentions in two additional ways. It has an infra-red sensor that looks for hand movements up to about 4 inches away from the phone, and it uses the front-side camera to figure out if it's front of the user's face. Thanks to the IR sensor, the phone's browser responds to an "up swipe" in the air above it with by scrolling up, and to a "side" swipe by jumping to another tab. This could be pretty useful when the smartphone is the lunchtime companion and you don't want to grease it up with foody fingers, but again, the "air swipe to scroll" shows up in only a few applications.
The camera is supposed to engage when you're watching a video, pausing playback if it thinks you're looking away. This didn't work in the preproduction unit I tested, but it's hard to imagine that this is a feature to die for.
The list of user interface innovations goes on, but they don't amount to a coherent new way of interacting with the phone. Nor do they turn the phone into something that's intelligently aware of what goes on around it. It's more like Samsung is throwing a bunch of technologies into the phone to see what sticks. Sometimes, that's how progress works, but consumers might not appreciate being guinea pigs.
The S4 presents an interesting contrast to the BlackBerry Z10, which is coming out in a few weeks. Research In Motion Ltd. jettisoned the old BlackBerry software and rebuilt it from the ground up. The phone's hardware isn't as impressive as Samsung's, but the software is easy to use, and it's based on a strong idea: taking the pain out of communicating across email, text messaging and social networks. The S4, unfortunately, doesn't have the same clarity of purpose.





Grand Theft Auto V release date leaks, to ship as soon as March 24: Report

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Grand theft Auto V made it to our list of the top 10 and top 25 games to watch out in 2013. We know that the game is expected to release this spring. But now a new report is indicative of the game being expected to ship by the end of March.

Nick Ritenour, a commenter on iDigitalTimes posted that Grand Theft Auto 5 will begin shipping out March 24, at least for the Xbox 360. He said, "I preordered it from Microsoft...says shipping/release date is March 24. This doesn't mean it's correct lol...but usually if its not known they list it as TBA."

However, after the website managed to further investigate its comments section, another comment mentions that the game will reach Australian shores on April 24. Mat, the commenter claims that he has pre-ordered the game from Australian retailer JB-HI-FI, who have the confirmed date from developer Rockstar itself.

I have pre-ordered Grand Theft Auto V at the Australian retailer JB-HI-FI. I recently updated my pre-order with them and I directly asked when this game will be released, they responded without hesitation and said April 24 2013 (Australian release date). They continued to explain to me that Rockstar Games had notified them of this information. It also says the release date on my pre-order receipt April 24 2012. True story.

Moreover, Rockstar has promised that the game's official box art is coming soon. Earlier this month, the company mentioned in its post on Rockstar Newswire saying that there's "lots more ahead" for Grand Theft Auto V, including "more artwork and the unveiling of the game's official cover later this month."

A first major title in the Grand Theft Auto series since 2008, the fifteenth game in the overall series, GTA V is set in Los Santos in the state of San Andreas and its surrounding areas, based on modern-day Los Angeles and Southern California. Developer Rockstar says that the game will focus on "the pursuit of the almighty dollar".

For the first time in the Grand Theft Auto series, GTA V will feature three playable protagonists. The multiplayer mode will feature "Crews" similar to Max Payne 3. A new Social Club functionality will connect play across multiple titles, starting with Max Payne 3 and GTA V. Playing the multiplayer mode in both games allows crews seth up in one game to be carried over to the other.




Microsoft's next-gen 'Xbox' to be a hub for other 'X-branded' devices: Report

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Codenamed Durango until now, Microsoft's next generation console more commonly known as the Xbox 720 will be simply referred to as the 'Xbox' as reported by Pocket-lint.

The site claims that the software giant is sticking to the console's original naming convention when it was launched 11 years ago. The blog further states that the Xbox will function as a hub for other X-branded devices, including the X-Surface, a 7-inch gaming tablet from Microsoft.

Citing a source close to the project, Pocket-lint has learnt that the X-Surface will be a "standalone portable gaming system" that will allow access to the games, music and video hubs of the latest console. Also, there will be no separate desktop and that it will be focused on providing gamers with a full-console-like experience for playing games.

As far as specs on the tablet are concerned, details are sketchy right now but the source claims that they "witnessed Unreal Engine 3 demos running at a solid 60fps". It has much improved hardware over the company's current Surface RT tablet.

Speaking of specs, earlier this week CVG reported via VGLeaks that the new Xbox console will be powered by a 1.6GHz 8-core CPU most likely from AMD and an 800MHz GPU with 12 shader cores "providing a total of 768 threads", and boast 1.2 teraflops of processing power.

xbox-specs-diagram.jpgFurthermore, it will feature 8GB RAM on-board, with 32MB of fast embedded SRAM at double the throughput speed, and a 50GB-capable 6x Blu-ray drive. Wireless connectivity options include both Wi-Fi and Wi-Fi Direct and there's still a Gigabit Ethernet port for gamers with low-latency multiplayer demands.

It'll also come with USB 3.0 and HDMI 1.4a (which supports 3D over HDMI) Ethernet, audio return channels and 4K resolution. The console will also reportedly come with Kinect multichannel echo cancellation (MEC) hardware.

The tipster at Pocket-lint has confirmed some of the leaked specifications for the console, claiming that "the majority of information leaked recently by many sources is true."

In some more news relating to next-gen consoles, Sony CEO Kazuo Hirai wants Microsoft to make the first move. Speaking to The Times, Hirai said, "Why go first, when your competitors can look at your specifications and come up with something better?"

We know one thing for sure. Both Sony and Microsoft are expected to reveal their new consoles this year with gamers across the world highly anticipating their launch either at E3 or perhaps even earlier. (Also seePlayStation 4 and Xbox 720 to launch in Q1 2013? Analyst sees pricing upto $400




Sony unveils limited edition Classic White PlayStation 3 bundle in US for $299, coming Jan 27
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Based on several user requests, Sony has finally announced the 500GB Classic White PS3 special limited edition bundle for gamers in the US. The bundle is priced at $299 and will be available across the nation on January 27.

Announcing via the PlayStation Blog, the company is also offering a one-year PlayStation Plus membership for the buyers of the limited edition bundle. That means in case you go ahead and purchase the bundle, your membership gets extended by a year.

The contents of the limited edition white PS3 bundle include PlayStation 3 System Classic White 500GB, 1 year of PlayStation Plus, 1 Dualshock 3 Wireless controller, an AC power cord, AV cable and USB cable.

Here's a look at some of the exclusive PS Plus features that players can access with their PS Plus membership:
  • A regularly refreshed library of 12 PS3 games including LittleBigPlanet 2, inFAMOUS 2, Ratchet & Clank: All 4 One, and more, with additional titles added each month
  • 6 Additional games to play on your PlayStation Vita system including Uncharted: Golden Abyss, Gravity Rush, WipeOut 2048 and moreExclusive discounts of 10% - 75% on the PlayStation Store
  • 1 GB of online storage on both your PS3 and PS Vita for game saves
  • Exclusive and early access to select demos and game betas, including the God of War: Ascension Multiplayer Beta 
samurai-beatdown.jpgSony also seems to be drawing attention towards its PlayStation Mobile platform by offering one free game a week for the next six weeks. The only thing gamers need to get started is either a PlayStation Vita or a PlayStation Certified Android device.

PS Vita owners can simply head to the PlayStation Mobile Section of the PlayStation Store while owners of Sony smartphones or tablets and those with HTC Android devices that are PlayStation Certified just need to download and install the PlayStation Mobile Android App.

According to the official PlayStation Mobile blog, the generous people at Sony are spreading a bit of the remaining holiday spirit, which is much appreciated. The blog asks users to check the Store Update post each Tuesday until February 19th to see which new PlayStation Mobile game will be free for that week. One new game will be listed as free each Wednesday.

This week's free title is called Samurai Beatdown. It's a hack'n'slash, 2D side scroller game. The aim is to just slaughter anything that comes in your way to advance to the next level.

Check out the game's trailer to see how it's done Samurai style!



Video games help children become smarter
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Active video games help children become smarter by boosting their self-esteem and problem-solving skills besides motivating them to exercise, says a new study.Penny Sweetser, Daniel Johnson and Peta Wyeth from Australia's Games Research and Interaction Design (GRID) Lab in Queensland investigated the amount of time children spent watching TV and DVDs, compared to playing video games.
Watching TV was a "passive" experience, while video and computer games were interactive, boosting children's self-esteem, problem-solving skills and in some cases, physical activity levels, said Johnson, the Australian Journal for Early Childhood reports.
"Emerging research has shown that active video games such as Nintendo Wii, Sony PlayStation Move, and the XBOX Kinect can be used to motivate young children to exercise and be more active outside of the game setting," adds Johnson, according to a Queensland statement.
"There is a lot of negative press about gaming and that's not well-supported. Where there is a negative effect, research shows it's on the minority of people. Video games are a mainstream pastime," Johnson says.
Their analysis of data from the Longitudinal Study of Australian Children found children in a particular age group spent, on an average, some two to three hours watching TV compared to less than a half hour playing video games or using computers.
Working on computer and playing video games should not be classed as the same type of activity as watching TV. Screen-time recommendations, which are based on the sum of all screen-related activities, should be divided into two categories, active and passive screen time, says Sweetser.
"Clearly, certain forms of media such as violent video games are not appropriate for children, and games should be played in moderation," adds Sweetser.

All eyes on Call of Duty: Black Ops II after strong Halo 4 launch

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Microsoft Corp's "Halo 4" action-shooter video game delivered robust sales on its launch - a good sign for the flagging video game industry and setting up a tough battle with Activision Blizzard Inc's latest "Call of Duty".

As more gamers migrate from console gaming to mobile offerings on tablets and smartphones, the video game industry has seen revenues decline and the performance of both titles in the upcoming holiday shopping season and 2013 is being watched closely as a gauge of future demand for the sector.

"Call of Duty" is currently the biggest-selling title on Microsoft's Xbox and strong sales for "Halo 4" could eat into its sales on that console. But unlike "Halo 4", it is also available on PCs, Sony Corp's PlayStation and Nintendo Co Ltd's Wii consoles.

Microsoft said "Halo 4" racked up $220 million in global sales on its launch day, surpassing the $200 million made by the previous installment,"Halo: Reach", which was released in 2010. "Halo 4" will likely reach $300 million in sales in its first week, the company said.

Activision raised its earning outlook last week on expectations of strong holiday sales of "Call of Duty: Black Ops II", saying it hoped it would beat previous "Call of Duty" records.

The previous installment "Modern Warfare 3" garnered more than $400 million in sales on its first day in stores in North America and the United Kingdom, setting a video game industry record and hit $1 billion in 16 days after launch.

The latest "Call of Duty" will be available for PCs, the Xbox and PlayStation consoles on Tuesday, while a dedicated Wii U version will be released when the new console hits stores on November 18.

Sterne Agee analyst Arvind Bhatia said that good starts were being seen for some popular titles - in addition to a 15 percent rise in sales for "Halo 4" over its previous installment, Ubisoft's action-adventure game "Assassin's Creed III" that launched in October is on track to double sales compared to last year's offering.

He said that even a small rise in sales or flat sales from last year for the "Black Ops II" launch would bode well for the quarter.

"There's no reason to believe the early sales won't be strong but the question is beyond the December quarter," he said. "It boils down to the legs the game may have beyond the first few weeks or the first quarter."

"Call of Duty" has been the top-selling game property during the holiday period in November and December since 2008 and represented 14 percent of retail software sales last holiday, Liam Callahan, industry analyst at research firm NPD Group, said.

The first-person shooter game is set against the backdrop of the Cold War and also has a scenario that transports gamers to a futuristic setting in 2025. The new title has a feature that allows gamers to stream gameplay live on YouTube.

Gamers retailers like GameStop Corp are holding special events at stores ahead of the launch of "Black Ops II" early on Tuesday.




Halo 4 release spurs frenzy among gamers

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Blockbuster videogame "Halo" on Tuesday took on new life with the release of a sequel so hotly anticipated that launch day revenue was expected to eclipse anything seen in the industry this year.Hundreds of thousands of fans queued outside shops in more than 40 countries where "Halo 4" went on sale the moment Tuesday arrived.
Marquee events that featured game makers, private screenings of a live-action show based on the title, and chances to meet people who helped create "Halo 4" took place in Paris, London, Berlin, Hong Kong, Sydney and other major cities.
"Halo 4 marks a rebirth and a new beginning for one of the most beloved and iconic franchises in the modern history of entertainment," said Microsoft Studios vice president Phil Spencer.
"Over the past decade, the Halo franchise has become a bona fide pop culture phenomenon."
Halo 4 was billed as the first chapter in a new saga building on the original Halo trilogy that has sold a "staggering" 46 million games worldwide and racked up $3 billion in sales.
Halo 4 was developed by Microsoft Studios 343 Industries exclusively for play on the Washington State-based technology company's Xbox 360 consoles and picks up the story of hero "Master Chief" five years after the end of Halo 3.
Since the title launched on the same day as the US presidential election, Microsoft began a get-out-the-vote campaign earlier this year to encourage gamers to "exercise their civic duty before jumping into Halo 4."
Spencer predicted that "Halo 4" help make 2012 the most successful year in Xbox history.
The science fiction shooter videogame features the return of Master Chief to confront "an ancient evil that threatens the entire universe."
A "Halo: Reach" videogame for the Xbox 360 console notched up 200 million dollars in sales in the United States and Europe on the first day of its release in September 2010.
"Halo: Reach" is a prequel set before the main "Halo" trilogy, which focuses on a super-soldier called "Master Chief" and his artificial-intelligence companion battling to save humanity from an alien alliance called the Covenant.
The first title, "Halo: Combat Evolved," was released in 2001 and the franchise has attracted a cult following and inspired novels, action figures, comic books and clothing.


Activision hopes to lead holiday sales with 'Call of Duty'

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Activision Blizzard Inc raised its 2012 outlook on Wednesday on expectations of strong holiday sales of its latest title in the "Call of Duty" franchise, despite competition from Microsoft Corp's blockbuster "Halo 4."Investors are keeping a close eye on action-shooter "Call of Duty: Black Ops II," a game that hits stores next week and advances a franchise that has broken sales records and driven Activision's fourth-quarter performance in past years.
But this year, it will have to contend with Microsoft Corp's just-launched sci-fi game, "Halo 4," for holiday-season bragging rights.
"They continue to outperform the industry," R.W Baird analyst Colin Sebastian said. "Another beat and raise for Q4, so management obviously feels confident with the holiday line-up with "Skylanders" and "Call of Duty."
The world's largest video game publisher now expects earnings per share of $1.10 in 2012, compared with 99 cents previously. It raised its revenue estimate to $4.8 billion from $4.63 billion. This beat Wall Street's view of $1.01 earnings per share and revenue of $4.68 billion.
The company's stock rose 3 percent to $11.45 in after hours trading from a close of $11.13 on Nasdaq.
"Microsoft did a very good job with Halo and fortunately it's only on a single platform," the Xbox, Chief Executive Bobby Kotick said in an interview.
"We raised outlook for the year as we're confident "Call Of Duty: Black Ops II" will likely be the most successful video game of the year," Kotick said.
Executives told analysts on an earnings call that "Black Ops II" pre-orders are tracking ahead of the game's previous installment, "Modern Warfare 3," but did not offer specifics.
The company reported higher earnings in the third quarter that also beat Wall Street's expectations.
Net income was up 53 percent at $226 million, or 20 cents per share, from $148 million, or 13 cents per share, in the year-ago period. On a non-GAAP basis, it earned 11 cents a share, beating the average forecast for 8 cents.
Revenue rose 12 percent to $841 million from $754 million a year ago. Adjusted for the deferral of digital revenue and other items, revenue rose about 20 percent to $751 million from $627 million a year ago, surpassing Wall Street's average forecast for $709.8 million, according to Thomson Reuters I/B/E/S.
Warcraft bounces back
Fantasy-action game "Diablo III" continues to sell well since its launch in May, executives said. Its "World of Warcraft" franchise also enjoyed a boost in sales after the September release of its latest "Mists of Pandaria" expansion pack.
Investors closely watch subscriber numbers for "World of Warcraft," Activision's most profitable business and the source of a steady stream of subscription-based revenue.
Subscribers to the seven-year-old game have dwindled in recent quarters as users switched to free offerings. Subscribers dropped to 9.1 million in the second quarter from 10.2 million in the first.
But this quarter, users were back up to 10 million after "Pandaria" sold 2.7 million units in its first week, luring gamers back.
Activision, better known for hard core shooter games, is also diversifying its revenue stream and stemming subscriber losses from its bread-and-butter games, for instance with the child-friendly "Skylanders."
It is also expanding internationally and investing in a variety of mobile games for Apple Inc's iPhone and other devices.
In a bid to expand its presence in Asia, the company released the "Mists of Pandaria" expansion pack in China in early October.
And the company announced in July that it plans to take "Call of Duty" to China as a free-to-play online game. Activision has partnered with Tencent Holdings Ltd an Internet and wireless services provider that will have an exclusive license to operate the shooter game in China.

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