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  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WASHINGTON, DC 20549</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM&nbsp;8-K</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">PURSUANT TO SECTION&nbsp;13 OR 15(d)&nbsp;OF THE</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">SECURITIES EXCHANGE ACT OF 1934</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of report (Date of
  earliest event reported):&#160; <b>May&nbsp;8, 2008</b></font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">ACTIVISION, INC.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of Registrant
  as Specified in Charter)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
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    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-15839</font></b></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">95-4803544</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other Jurisdiction of <br>
    Incorporation)</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File Number)</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer<br>
    Identification No.)</font></p>
    </td>
   </tr>
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    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3100 Ocean Park Boulevard, Santa <br>
    Monica, CA</font></b></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">90405</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive<br>
    Offices)</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone
  number, including area code:&#160; <b>(310) 255-2000</b></font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former Name or Former
  Address, if Changed Since Last Report)</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box
  below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
  filing obligation of the registrant under any of the following provisions:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="553" valign="top" style="padding:0in 0in 0in 0in;width:414.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Written communications pursuant to Rule 425 under the
    Securities Act (17 CFR 230.425) </font></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">x</font></p>
    </td>
    <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Soliciting material pursuant to Rule 14a-12 under the
    Exchange Act (17 CFR 240.14a-12)</font></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-commencement communications pursuant to Rule 14d-2(b)
    under the Exchange Act (17 CFR 240.14d-2(b)) </font></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
    </td>
    <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pre-commencement communications pursuant to Rule 13e-4(c)
    under the Exchange Act (17 CFR 240.13e-4(c)) </font></p>
    </td>
   </tr>
  </table>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925661\13882-1-ba.htm',USER='rcheney',CD='May  8 15:01 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 2.02.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Results
  of Operation and Financial Condition.</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;8, 2008, Activision,&nbsp;Inc.
  (the &#147;Company&#148;) issued a press release announcing financial results for the
  Company for the fiscal quarter and year ended March&nbsp;31, 2008. A copy of
  the press release is attached hereto as Exhibit&nbsp;99.1.&#160; As previously announced, the Company hosted a
  conference call and Webcast in conjunction with that release.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain Information Not Filed</font></u>.&#160; The information in this Form&nbsp;8-K and Exhibit&nbsp;99.1
  attached hereto shall not be deemed &#147;filed&#148; for purposes of Section&nbsp;18 of
  the Securities Exchange Act of 1934, nor shall this Form&nbsp;8-K or such Exhibit&nbsp;99.1
  or any of the information contained therein be deemed incorporated by reference
  in any filing under the Securities Exchange Act of 1934 or the Securities Act
  of 1933, except as shall be expressly set forth by specific reference in such
  filing.</p>
  
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Financial
  Statements and Exhibits.</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(d)&nbsp; Exhibits</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;margin-left:.5in;width:93.34%;">
   <tr>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.46%;">
    <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">99.1</font></b></p>
    </td>
    <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
    <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:normal;">&nbsp;</font></b></p>
    </td>
    <td width="92%" valign="top" style="padding:0in 0in 0in 0in;width:92.14%;">
    <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Press
    Release dated May&nbsp;8, 2008</font></b><font size="2" style="font-size:10.0pt;font-weight:normal;"> (filed
    solely for purposes of Rule&nbsp;14a-12 under the Exchange Act, and furnished
    not filed for purposes of Section&nbsp;18 of the Exchange Act)</font></p>
    </td>
   </tr>
  </table>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Important Additional
  Information has been and will be filed with the SEC</font></u></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">This
  communication is being made, in part, in respect of the proposed business
  combination involving the Company, Vivendi and Vivendi Games. In connection
  with the proposed transactions, the Company has filed with the Securities and
  Exchange Commission (the &#147;SEC&#148;) a preliminary proxy statement and other
  documents regarding the proposed transactions, and plans to file with the SEC a
  definitive proxy statement as well as other documents regarding the proposed
  transactions.&#160; The definitive proxy statement
  will be mailed to stockholders of the Company.&#160;
  INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE
  PRELIMINARY PROXY STATEMENT AND OTHER RELEVANT MATERIAL FILED WITH THE SEC, AND
  THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS TO BE FILED WITH THE SEC,
  CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
  CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS.</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Investors
  and security holders may obtain free copies of the preliminary proxy statement
  and other documents filed with the SEC by the Company, and will be able to
  obtain free copies of the definitive proxy statement (when available) and other
  relevant documents to be filed with the SEC by the Company, through the website
  maintained by the SEC at http://www.sec.gov.&#160;
  Free copies of the preliminary proxy statement (and the definitive proxy
  statement, when available) and other documents filed with the SEC can also be
  obtained by directing a request to the Company&#146;s Investor Relations department.</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">The
  Company and its directors and executive officers and other persons may be
  deemed to be participants in the solicitation of proxies in respect of the
  proposed transaction.&#160; Information </font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\rcheney\08-13882-1\task2925661\13882-1-ba.htm',USER='rcheney',CD='May  8 15:01 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">regarding
  the Company&#146;s directors and executive officers is available in its Annual
  Report on Form&nbsp;10-K for the year ended March&nbsp;31, 2007, which was
  filed with the SEC on June&nbsp;14, 2007, and its proxy statement for its 2007
  annual meeting of stockholders, which was filed with the SEC on July&nbsp;30,
  2007.&#160; Other information regarding the
  participants in the proxy solicitation and a description of their direct and
  indirect interests, by security holdings or otherwise, are contained in the
  preliminary proxy statement and will be contained in other relevant materials
  filed with the SEC (and will be contained in the definitive proxy statement and
  other relevant materials to be filed with the SEC when they become available).</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">THIS
  DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE
  SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER
  TO BUY SHARES OF ACTIVISION&#146;S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN
  OFFER TO PURCHASE AND RELATED MATERIALS THAT ACTIVISION INTENDS TO FILE WITH
  THE SEC.&#160; ONCE FILED, ACTIVISION
  STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING ANY
  DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION,
  INCLUDING THE TERMS AND CONDITIONS OF THE OFFER.&#160; ONCE FILED, ACTIVISION STOCKHOLDERS WILL BE
  ABLE TO OBTAIN THE OFFER TO PURCHASE AND RELATED MATERIALS WITH RESPECT TO THE
  OFFER FREE OF CHARGE AT THE SEC&#146;S WEBSITE AT HTTP://WWW.SEC.GOV, OR FROM THE
  INFORMATION AGENT NAMED IN THE TENDER OFFER MATERIALS.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\rcheney\08-13882-1\task2925661\13882-1-ba.htm',USER='rcheney',CD='May  8 15:01 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURE</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: May&nbsp;8, 2008</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ACTIVISION, INC.</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:46.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Thomas Tippl</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="46%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:46.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Thomas Tippl</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Chief Financial Officer of Activision<br> &nbsp;Publishing,&nbsp;Inc.</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;(Principal Financial and Accounting Officer
    of<br> &nbsp;Activision, Inc)</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\rcheney\08-13882-1\task2925661\13882-1-ba.htm',USER='rcheney',CD='May  8 15:01 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.76%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="87%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:87.74%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.76%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="87%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:87.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.76%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="87%" valign="top" style="padding:0in 0in 0in 0in;width:87.74%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Press Release dated
    May&nbsp;8, 2008</font><b>  </b>(filed
    solely for purposes of Rule&nbsp;14a-12 under the Exchange Act, and furnished
    not filed for purposes of Section&nbsp;18 of the Exchange Act)</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\rcheney\08-13882-1\task2925661\13882-1-ba.htm',USER='rcheney',CD='May  8 15:01 2008' -->
  
  
  
  <br clear="all" style="page-break-before:always;">
  <div>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C<b>ontacts:</b></font></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Kristin Southey</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Vice President, Investor
    Relations</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(310) 255-2635</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;"><font style="text-decoration:none;">&nbsp;</font></font></u></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ksouthey@activision.com</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Maryanne Lataif</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Vice President, Corporate
    Communications</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(310) 255-2704</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="16%" valign="bottom" style="padding:0in 0in 0in 0in;width:16.5%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">mlataif@activision.com</font></b></p>
    </td>
   </tr>
  </table>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 3.75in;text-indent:-3.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR
  IMMEDIATE RELEASE</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 3.75in;text-indent:-3.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <h1 style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ACTIVISION
  REPORTS RECORD Q4 AND FISCAL YEAR 2008 RESULTS</font></b></h1>
  
  <h1 style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARKING
  16 CONSECUTIVE YEARS OF REVENUE GROWTH</font></b></h1>
  
  <h1 style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><i style="font-weight:bold;">FY 2008 Net Revenues of $2.90 Billion, Increase of
  92% Year Over Year-</i></b></font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><i style="font-weight:bold;">Company Exceeds Peak Cycle Operating Margin Target </i></b><i>-</i></font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><i style="font-weight:bold;">FY 2008 Earnings Per Diluted Share Grow 293% to
  Record $1.10&#160; &#150;</i></b></font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><i style="font-weight:bold;">Company Provides Growth Outlook for Fiscal Year
  2009 -</i></b></font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Santa Monica, CA &#150; May&nbsp;8,
  2008<b> &#150;</b> Activision,&nbsp;Inc. (Nasdaq: ATVI)
  today announced record fiscal year 2008 and fourth quarter results.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Net revenues for the fiscal
  year ended March&nbsp;31, 2008 were $2.90 billion, as compared to $1.51 billion
  for the fiscal year ended March&nbsp;31, 2007.&#160;
  Net income for the fiscal year was $344.9 million, or $1.10 in earnings
  per diluted share, as compared to net income of $85.8 million, or $0.28 in
  earnings per diluted share reported for the last fiscal year.&#160;&#160; Excluding the impact of expenses related to
  equity-based compensation, the company reported non-GAAP net income of $377.5
  million and non-GAAP earnings per diluted share of $1.20 for the fiscal year.
  This compares to non-GAAP net income of $101.3 million and non-GAAP earnings
  per diluted share of $0.33 for the last fiscal year, in each case excluding the
  impact of expenses related to equity-based compensation.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Net revenues for the fourth
  quarter ended March&nbsp;31, 2008 were $602.5 million, as compared to $312.5
  million that the company reported for the fourth quarter of the last fiscal
  year.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">For the fourth quarter, the
  company reported net income of $44.2 million, or earnings per diluted share of
  $0.14, as compared to a net loss of $14.4 million, or a loss per share of
  $0.05, for the fiscal year 2007 fourth quarter.&#160;
  Excluding the impact of expenses related to equity-based compensation
  expense, the company reported non-GAAP net income of $54.9 million and non-GAAP
  earnings per diluted share of $0.17 for the quarter.&#160; This compares to a non-GAAP net loss of $10.1
  million and a non-GAAP loss per share of $0.04 for the fourth quarter of last
  fiscal year, in each case excluding the impact of expenses related to
  equity-based compensation.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Robert
  Kotick, Chairman and CEO of Activision,&nbsp;Inc. commented, &#147;Fiscal 2008 was
  the best year in our history and Q4 was the largest and most profitable
  non-holiday quarter, even though we did not release any new titles.&#160; During the fiscal year, we were the #1 U.S.
  console and handheld publisher in dollars for the first time ever, according to
  The NPD Group, and we grew our worldwide share of the console, handheld and PC
  markets year over year.&#160; We achieved
  record financial performance significantly growing both net revenues and
  earnings per share.&#160; And, we delivered a
  record operating margin of 16.5% on a GAAP basis, and 18.4% on a non-GAAP
  basis, excluding the impact of equity-based compensation, and we increased stockholder&#146;s
  equity by 38%.</font><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&#148;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Kotick</font><font size="2" style="font-size:10.0pt;"> continued, &#147;In
  fiscal 2009, we expect to deliver another year of growth.&#160; We remain committed to strengthening our
  global leadership position by continuing to execute on our growth strategies
  and cost-optimization initiatives.&#160; We
  own or control some of the most successful brands in interactive entertainment,
  and we will continue to focus our resources on proven properties with broad
  global appeal.&#160; Our solid lineup, which
  includes new titles based on such blockbuster brands as <i>Call of Duty</i>&#174;,
  <i>Guitar Hero</i>&#174; and <i>James Bond, </i>should
  enable us to continue capitalizing on growth in interactive entertainment
  consumption worldwide.&#148;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kotick
  added, &#147;With respect to our pending combination with Vivendi Games, we are on
  track to complete our transaction, which will create the world&#146;s largest and
  most profitable independent video game company.&#160;
  We are pleased that Blizzard&#146;s business maintained its momentum, and
  combined with our continued business strength, we are well positioned to exceed
  the financial goals we have set for the combined company at the time of the
  deal announcement.&#160;&#160; The combination of
  Activision&#146;s solid portfolio and Vivendi Games proven properties should enable
  us to continue delivering exceptional returns to our stockholders.&#148;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Business Highlights</font></b></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:black;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Activision&#146;s
  fiscal year results were driven by strong worldwide consumer response to <b><i style="font-weight:bold;">Call of Duty&#174; 4: Modern Warfare&#153;</i></b>, <b><i style="font-weight:bold;">Guitar Hero&#174; III: Legends of Rock</i></b>, <b><i style="font-weight:bold;">Spider-Man</i></b>  <b><i style="font-weight:bold;">3&#153;</i></b>,
  <b><i style="font-weight:bold;">Shrek The Third&#153;, </i></b>as well as its new
  licensed intellectual property <b><i style="font-weight:bold;">TRANSFORMERS: The Game</i></b></font><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">.</font></p>
  
  <p style="color:black;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:black;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">The
  company&#146;s fourth quarter results were driven by strong market conditions and
  the continued success of <b><i style="font-weight:bold;">Guitar Hero III: Legends
  of Rock</i></b> and <b><i style="font-weight:bold;">Call of Duty 4: Modern
  Warfare.</i></b></font></p>
  
  <p style="color:black;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">During the fiscal year, in
  the U.S., Activision grew its market share by 7.2% to a record 17.3%, was the
  #1 console and handheld software publisher in dollars, and had three top-10 best-selling
  titles in dollars overall according to The NPD Group.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For the fiscal year,
  Activision set an industry record for U.S. sell-through in dollars by a single
  publisher, according to The NPD Group.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><i><font size="2" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Guitar Hero III: Legends
  of Rock</font></i></b><font size="2" style="font-size:10.0pt;"> was the #1 best-selling game in the U.S. and Europe
  in dollars during the fiscal year, according to The NPD Group, Charttrack and
  Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For the fiscal year,<b><i style="font-weight:bold;"> Call of Duty</i></b>  <b><i style="font-weight:bold;">4:
  Modern Warfare</i></b> was the #2 best-selling game worldwide in units,
  selling more than 9 million units as of March&nbsp;31, 2008, according to The
  NPD Group, Charttrack and Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For the fiscal year, <b><i style="font-weight:bold;">Call of Duty 4: Modern Warfare</i></b> was
  the #1 best-selling PC title in dollars worldwide, according to The NPD Group,
  Charttrack and Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">During the fiscal year, both
  the <i>Guitar Hero</i> and <i>Call of Duty</i>
  franchises surpassed a billion dollars in life to date sales.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><i><font size="2" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Spider-Man 3&#153; </font></i></b><font size="2" style="font-size:10.0pt;">and <b><i style="font-weight:bold;">TRANSFORMERS: The Game</i></b> were the #1
  and #2 best-selling movie based games in dollars worldwide for fiscal year
  2008, according to The NPD Group, Charttrack and Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Activision grew its European
  market share from 4.8% to 7.4% during the fiscal year, according to Charttrack
  and Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Activision&#146;s international
  publishing revenues grew in excess of 100% year over year.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.7pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">According to The NPD Group,
  for the fourth quarter, Activision ranked as the #1 U.S. console, handheld and
  PC publisher in dollars.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.7pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">On September&nbsp;26, 2007,
  Activision announced that it had acquired U.K.-based developer Bizarre
  Creations, one of the world&#146;s premier video game developers and a leader in the
  racing category.&#160; The acquisition enables
  Activision to enter the $1.5 billion racing category, which is the seventh most
  popular videogame genre and represented more than 7.5% of the total video game
  market worldwide in calendar 2007, according to The NPD Group, Charttrack and
  Gfk.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt 54.9pt;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .7in;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">On December&nbsp;1, 2007,
  Activision and Vivendi entered into a definitive agreement to combine Vivendi
  Games, Vivendi&#146;s interactive entertainment business &#151; which includes Blizzard
  Entertainment&#146;s&#174; World of Warcraft&#174;, the world&#146;s #1 massively multiplayer
  online role playing game franchise with more than 10 million global subscribers
  &#150; with Activision, which at closing will create the world&#146;s largest pure-play
  online and console game publisher.&#160;&#160; The
  transaction remains subject to approval by Activision&#146;s stockholders and other
  customary closing conditions.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .7in;text-indent:-.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company
  Outlook</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the first quarter of fiscal 2009, Activision will release <b><i style="font-weight:bold;">Enemy Territory</i></b>&#153;<b><i style="font-weight:bold;">:
  QUAKE WARS </i></b>for the Xbox 360<b><i style="font-weight:bold;">&#174;</i></b> video
  game and entertainment system from Microsoft and PLAYSTATION&#174;3 computer
  entertainment system<i>;<b> Kung Fu
  Panda, </b></i>on the Xbox 360 video game and entertainment
  system from Microsoft and PLAYSTATION 3 computer entertainment system,
  PlayStation 2 computer entertainment system, the Nintendo&#174; Wii&#153;, Games for
  Windows&#174; and the Nintendo DS&#153;; <b><i style="font-weight:bold;">Guitar Hero&#174;: On Tour</i></b>
  for the Nintendo DS; and <b><i style="font-weight:bold;">Guitar Hero&#174;: Aerosmith&#174; </i></b>for
  the<b><i style="font-weight:bold;">  </i></b>Xbox 360 video game and
  entertainment system from Microsoft,&#160; PLAYSTATION
  3 computer entertainment system, PlayStation 2 computer entertainment system
  and the Nintendo Wii.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Activision announced today that
  online functionality for certain key titles to be released in the December&nbsp;quarter
  of fiscal year 2009 and thereafter is expected to become a significant
  component of game play for certain platforms for which the company will have
  continuing performance obligations beyond the sale of the game.&#160; As a result, the company expects to begin
  recognizing a substantial amount of net revenues and costs of sales from these
  online-enabled games over a service period, which we currently estimate to be
  six months beginning the month after shipment.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Activision anticipates that a
  considerable amount of net revenues and costs of sales that would have been
  recognized in the fiscal year ending March&nbsp;2009 will be recognized later
  in the calendar year 2009.&#160; While this
  will not impact the economics of Activision&#146;s business or its cash flows, these
  changes will have a material impact on the company&#146;s fiscal year 2009 GAAP
  results.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">In order to provide comparable
  year-over-year performance information, Activision&#146;s non-GAAP results will
  exclude the impact of the change in deferred net revenues and cost of sales
  related to those online-enabled key titles on certain platforms.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Additionally, in fiscal year
  2009, Activision&#146;s non-GAAP results<b>  </b>will exclude<b>  </b>one-time costs related to the Vivendi transaction.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">For fiscal year 2009, on a
  stand-alone basis, (not including Vivendi Games), Activision expects net
  revenues of $2.75 billion and earnings per diluted share of $0.72.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">For fiscal 2009, Activision
  expects stand-alone non-GAAP net revenues, excluding the impact of the change
  in deferred revenue related to online-enabled games, to be $3.1 billion.&#160; Excluding the impact of equity-based
  compensation expense ($0.12 per share), one-time costs related to the Vivendi
  transaction ($0.07 per share) and the impact of the change in deferred net
  revenues and cost of sales related to online-enabled games ($0.39 per share),
  Activision expects stand-alone non-GAAP earnings per diluted share of $1.30.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">For the first quarter,
  Activision expects net revenues of $500.0 million and earnings per diluted
  share of $0.04 on a stand-alone basis.&#160;&#160;
  Excluding the impact of equity-based compensation expense ($0.02 per
  share) and one-time costs related to the Vivendi transaction ($0.07 per share),
  the company&#146;s stand-alone non-GAAP earnings per diluted share outlook is
  expected to be $0.13.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Conference
  Call</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Today
  at 4:30&nbsp;p.m. EDT, Activision&#146;s management will host a conference call and
  Webcast to discuss its fiscal 2008 year-end results and outlook for fiscal
  2009. The company welcomes all members of the financial and media communities,
  and other interested persons, to visit the &#147;Investor Relations&#148; area of </font></b></strong><b><font size="2" style="font-size:10.0pt;font-weight:bold;">www.activision.com </font></b><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">to
  listen to the conference call via a live Webcast or to listen to the call live
  by </font></b></strong><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">dialing</font></b></strong><b><font size="2" style="font-size:10.0pt;font-weight:bold;">  </font></b><font size="2" style="font-size:10.0pt;">in at</font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">  </font></b><font size="2" style="font-size:10.0pt;">719-325-4752 in the U.S</font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">.</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;font-weight:bold;">Non-GAAP Financial Measures</font></i></b></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">Activision provides net income
  (loss) and earnings (loss) per share data both including (in accordance with
  GAAP) and excluding (non-GAAP) the impact of expenses related to employee stock
  options, employee stock purchase plans, restricted stock rights and other
  equity-based compensation and the associated tax benefits, and in the future
  Activision&#146;s non-GAAP results will also exclude the impact of the change in
  deferred net revenues and costs of sales, and one-time costs related to the
  Vivendi transaction.</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">Additionally, following the completion of the Vivendi
  transaction, Activision will exclude from its non-GAAP results<b>  </b>the impact of expenses related to intangible amortization,
  as well as any one-time restructuring costs and results related to the
  discontinuation of operations should there be any.</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">Prior to April&nbsp;1, 2006,
  Activision accounted for equity-based compensation under Accounting Principles
  Board Opinion No.&nbsp;25, &#147;Accounting for Stock Issued to Employees&#148; (&#147;APB No.&nbsp;25&#148;).&#160; In accordance with APB No.&nbsp;25, the
  company historically used the intrinsic value method to account for
  equity-based compensation.&#160; Beginning on April&nbsp;1,
  2006, Activision has accounted for equity-based compensation using the fair
  value method under&#160; Statement of
  Financial Accounting Standards No.&nbsp;123 (revised 2004), &#147;Share-Based
  Payment&#148; (&#147;FAS 123(R)&#148;).</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">As online functionality becomes a
  more important component of gameplay, in fiscal 2009, </font></i><font size="2" style="font-size:10.0pt;font-style:normal;">the company expects
  that certain online-enabled games, to be released in fiscal 2009, will contain
  a more-than-inconsequential separate service deliverable in addition to the
  product, and its performance obligations for these games extend beyond the sale
  of the games. Vendor-specific objective evidence (&#147;VSOE&#148;) of fair value does
  not exist for the online services, as the company does not plan to separately
  charge for this component of online-enabled games.</font></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <div align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></i></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">As a result, for certain key titles to be released in the December&nbsp;quarter
  of fiscal year 2009 and thereafter, the company will recognize all of the
  revenues from the sale of certain online-enabled games for certain platforms
  ratably over an estimated service period, which it currently estimates to be
  six months beginning the month after shipment. In addition, it will defer the
  costs of sales of those titles. As a consequence</font></i><font size="2" style="font-size:10.0pt;font-style:normal;">, the
  company&#146;s non-GAAP results will exclude the impact of the change in deferred
  revenue and costs of sales related to certain online-enabled games for certain
  of the Microsoft, Sony, Nintendo and PC platforms in order to provide
  comparable year-over-year performance.</font></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Additionally,
  in order to provide comparable year-over-year performance, as of June&nbsp;30,
  2008, Activision will exclude from its non-GAAP operating results the impact of
  one-time costs related to the Vivendi transaction.</font></p>
  
  <p align="left" style="color:black;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-GAAP net
  revenue, non-GAAP net income (loss), non-GAAP earnings (loss) per share, and
  non-GAAP operating margin, excluding the impact of changes in </font><font size="2" style="font-size:10.0pt;">deferred net
  revenues and cost of sales, one-time costs related to the Vivendi transaction
  and<i>  </i></font><font size="2" style="font-size:10.0pt;">expenses related to equity-based compensation, are not
  determined in accordance with GAAP, and the exclusion of those items has the
  effect of increasing non-GAAP net revenue, non-GAAP net income, non-GAAP
  earnings per share and non-GAAP operating margin (and reducing non-GAAP net
  loss and non-GAAP loss per share) by the same amounts as compared with GAAP net
  revenue, GAAP net income (loss), GAAP earnings (loss) per share and GAAP
  operating margin for the period.&#160;&#160;
  Activision recognizes that there are limitations associated with the use
  of these non-GAAP financial measures as they do not reflect net revenue, net
  income (loss), earnings (loss) per share and operating margin as determined in
  accordance with GAAP, and may reduce comparability with other companies that
  calculate similar non-GAAP measures differently.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management
  compensates for the limitations resulting from the exclusion of these items by
  considering the impact of these items separately and by considering Activision&#146;s
  GAAP as well as non-GAAP results and outlook and, in this release, by
  presenting the most comparable GAAP measures, net revenue, net income (loss),
  earnings (loss) per share and operating margin directly ahead of non-GAAP net
  revenue, non-GAAP net income (loss), non-GAAP earnings (loss) per share, and non-GAAP
  operating margin, and by providing a reconciliation which indicates&#160; and describes the adjustments made.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management
  believes that the presentation of these non-GAAP financial measures provides
  investors with additional useful information to measure Activision&#146;s financial
  and operating performance because they allow for a better comparison of results
  between periods. Management further believes that reflecting the use of
  non-GAAP measures that eliminate the impact of deferred revenues and costs of
  sales in its operating results is important to facilitate comparisons to prior
  periods during which the application of its accounting policies did not result
  in deferral of significant amounts of revenues and costs of sales related to
  online-enabled games. Internally, management uses these non-GAAP financial
  measures in assessing the company&#146;s operating results, as well as in planning
  and forecasting.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These non-GAAP
  financial measures should be considered in addition to, not as a substitute for
  or superior to, financial measures determined in accordance with GAAP.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These non-GAAP
  financial measures are not based on a comprehensive set of accounting rules&nbsp;or
  principles, and the terms non-GAAP net revenue, net income (loss), non-GAAP
  earnings (loss) per share, non-GAAP operating margin do not have a standardized
  meaning.&#160; Therefore, other companies may
  use the same or similarly named measures, but exclude different items, which
  may not provide investors a comparable view of Activision&#146;s performance in
  relation to other companies.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;font-weight:bold;">About Activision</font></i></b></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">Headquartered in Santa Monica,
  California, Activision,&nbsp;Inc. is a leading worldwide developer, publisher
  and distributor of interactive entertainment and leisure products.&#160; Founded in 1979, Activision posted net
  revenues of $2.90 billion for the fiscal year ended March&nbsp;31, 2008.</font></i></p>
  
  <p align="left" style="color:windowtext;font-style:italic;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Activision maintains
  operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland,
  Italy, Sweden, Spain, the Netherlands, Australia, Japan and South Korea.&#160; More information about Activision and its
  products can be found on the company&#146;s website, www.activision.com<u>.</u></font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cautionary Note Regarding Forward-looking
  Statements</font></u><font size="2" face="Times New Roman" style="font-size:10.0pt;">:&#160; Information in this press release that
  involves Activision&#146;s expectations, plans, intentions or strategies regarding
  the future are forward-looking statements that are not facts and involve a
  number of risks and uncertainties.&#160; In
  this release, they are identified by references to dates after the date of this
  release and words such as &#147;outlook&#148;,<b>  </b>&#147;will,&#148; &#147;remains,&#148;
  &#147;to be,&#148; &#147;plans,&#148; &#147;believes&#148;, &#147;may&#148;, &#147;expects,&#148; &#147;intends,&#148; and similar
  expressions.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Factors that could cause Activision&#146;s
  actual future results to differ materially from those expressed in the
  forward-looking statements set forth in this release include, but are not
  limited to, sales of Activision&#146;s titles in its fiscal year 2009, shifts in
  consumer spending trends, the seasonal and cyclical nature of the interactive
  game market, Activision&#146;s ability to predict consumer preferences among
  competing hardware platforms (including next-generation hardware), declines in
  software pricing, product returns and price protection, product delays, retail
  acceptance of Activision&#146;s products, adoption rate and availability of new
  hardware and related software, industry competition, rapid changes in
  technology and industry standards, protection of proprietary rights,
  maintenance of relationships with key personnel, customers, vendors and
  third-party developers, domestic and international economic, financial and
  political conditions, foreign exchange rates, integration of recent
  acquisitions and the identification of suitable future acquisition
  opportunities, the timing and successful completion of the combination of
  Activision and Vivendi Games, the combined company&#146;s success in integrating the
  operations of Activision and Vivendi Games in a timely manner, or at all, and
  the combined company&#146;s ability to realize the anticipated benefits and
  synergies of the transaction to the extent, or in the timeframe,
  anticipated.&#160; Other such factors include
  the further implementation, acceptance and effectiveness of the remedial
  measures recommended or adopted by the special sub-committee of independent
  directors established in July&nbsp;2006 to review Activision&#146;s historical stock
  option granting practices, by the Board and by Activision, the outcome of the
  SEC&#146;s formal investigation, the finalization of the proposed settlement of the
  derivative litigation filed in July&nbsp;2006 against certain current and
  former directors and officers of Activision relating to Activision&#146;s stock
  option granting practices, and the possibility that additional claims and
  proceedings will be commenced, including additional action by the SEC and/or
  other regulatory agencies, and other litigation (unrelated to stock option
  granting practices) and any additional risk factors identified in Activision&#146;s
  most recent annual report on Form&nbsp;10-K and quarterly reports on Form&nbsp;10-Q
  and the preliminary proxy statement most recent filed in connection with the
  proposed transaction with Vivendi. <b>&#160;</b>The forward-looking statements in
  this release are based upon information available to Activision as of the date
  of this release, and Activision assumes no obligation to update any such
  forward-looking statements.&#160; Forward-looking
  statements believed to be true when made may ultimately prove to be
  incorrect.&#160; These statements are not
  guarantees of the future performance of Activision, Vivendi Games or the
  combined Company and are subject to risks, uncertainties and other factors,
  some of which are beyond its control and may cause actual results to differ
  materially from current expectations.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Important Additional Information has been and will
  be filed with the SEC</font></u></b></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
  communication is being made, in part, in respect of the proposed business
  combination involving Activision, Vivendi and Vivendi Games. In connection with
  the proposed transactions, Activision has filed with the Securities and
  Exchange Commission (SEC) a preliminary Proxy Statement and other documents regarding
  the proposed transactions, and plans to file with the SEC a definitive Proxy
  Statement as well as other documents regarding the proposed transactions.&#160; The definitive Proxy Statement will be mailed
  to stockholders of Activision.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INVESTORS
  AND SECURITY HOLDERS OF ACTIVISION ARE URGED TO READ THE PRELIMINARY PROXY
  STATEMENT AND OTHER RELEVANT MATERIAL FILED WITH THE SEC, AND THE DEFINITIVE
  PROXY STATEMENT AND OTHER DOCUMENTS TO BE FILED WITH THE SEC, CAREFULLY AND IN
  THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
  INFORMATION ABOUT THE PROPOSED TRANSACTIONS.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investors
  and security holders may obtain free copies of the preliminary Proxy Statement
  and other documents filed with the SEC by Activision, and will be able to obtain
  free copies of the Proxy Statement (when available) and other relevant
  documents to be filed with the SEC by Activision, through the website
  maintained by the SEC at http://www.sec.gov.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Free
  copies of the preliminary Proxy Statement (and the definitive Proxy Statement,
  when available) and other documents filed with the SEC can also be obtained by
  directing a request to Activision&#146;s Investor Relations department.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Activision
  and its directors and executive officers and other persons may be deemed to be
  participants in the solicitation of proxies in respect of the proposed
  transaction.&#160; Information regarding
  Activision&#146;s directors and executive officers is available in its Annual Report
  on Form&nbsp;10-K for the year ended March&nbsp;31, 2007, which was filed with
  the SEC on June&nbsp;14, 2007, and its proxy statement for its 2007 annual
  meeting of stockholders, which was filed with the SEC on July&nbsp;30,
  2007.&#160; Other information regarding the
  participants in the proxy solicitation and a description of their direct and
  indirect interests, by security holdings or otherwise, are contained in the
  preliminary Proxy Statement and will be contained in other relevant materials
  filed with the SEC (and will be contained in the definitive Proxy Statement and
  other relevant materials to be filed with the SEC when they become available).</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS
  DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE
  SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER
  TO BUY SHARES OF ACTIVISION&#146;S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN
  OFFER TO PURCHASE AND RELATED MATERIALS THAT ACTIVISION INTENDS TO FILE WITH
  THE SEC.&#160; ONCE FILED, ACTIVISION
  STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING ANY
  DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION,
  INCLUDING THE TERMS AND CONDITIONS OF THE OFFER.&#160; ONCE FILED, ACTIVISION STOCKHOLDERS WILL BE
  ABLE TO OBTAIN THE OFFER TO PURCHASE AND RELATED MATERIALS WITH RESPECT TO THE
  OFFER FREE OF CHARGE AT THE SEC&#146;S WEBSITE AT HTTP://WWW.SEC.GOV, OR FROM THE
  INFORMATION AGENT NAMED IN THE TENDER OFFER MATERIALS.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cautionary
  Note Regarding Financial Information Concerning Vivendi and its
  Subsidiaries:&#160; Except as specifically
  described herein, the information concerning Vivendi, Vivendi Games and
  Blizzard contained in this press release has been taken from or is based upon
  information furnished by Vivendi or its representatives. Activision has no
  knowledge that would indicate that any statements contained herein based on
  such documents and records are untrue. However, neither Activision nor any of
  its affiliates assumes any responsibility for the accuracy, currency or
  completeness of the information furnished by Vivendi concerning Vivendi,
  Vivendi Games or Blizzard.</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Tables to Follow)</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">###</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(more)</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-13882-1\task2925798\13882-1-bc.htm',USER='rcheney',CD='May  8 15:23 2008' -->
  
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-13882_18k.htm", "description": "8-K", "secsgml_size_bytes": 101965}]
metadata_filer: {"company-data": {"conformed-name": "ACTIVISION INC /NY", "cik": "0000718877", "assigned-sic": "7372", "irs-number": "954803544", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15839", "film-number": "08814453"}, "business-address": {"street1": "3100 OCEAN PARK BLVD", "city": "SANTA MONICA", "state": "CA", "zip": "90405", "phone": "3102552000"}, "mail-address": {"street1": "3100 OCEAN PARK BLVD", "city": "SANTA MONICA", "state": "CA", "zip": "90405"}, "former-company": [{"former-conformed-name": "MEDIAGENIC", "date-changed": "19920703"}, {"former-conformed-name": "ACTIVISION INC", "date-changed": "19880829"}]}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, DC 20549
  FORM 8-K
  CURRENT REPORT
  PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934
  Date of report (Date of
  earliest event reported):
  May 8, 2008
  ACTIVISION, INC.
  (Exact Name of Registrant
  as Specified in Charter)
  Delaware
  001-15839
  95-4803544
  (State or Other Jurisdiction of
  Incorporation)
  (Commission File Number)
  (IRS Employer
  Identification No.)
  3100 Ocean Park Boulevard, Santa
  Monica, CA
  90405
  (Address of Principal Executive
  Offices)
  (Zip Code)
  Registrant's telephone
  number, including area code:
  (310) 255-2000
  (Former Name or Former
  Address, if Changed Since Last Report)
  Check the appropriate box
  below if the Form 8-K filing is intended to simultaneously satisfy the
  filing obligation of the registrant under any of the following provisions:
  o
  Written communications pursuant to Rule 425 under the
    Securities Act (17 CFR 230.425)
  x
  Soliciting material pursuant to Rule 14a-12 under the
    Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b)
    under the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c)
    under the Exchange Act (17 CFR 240.13e-4(c))
  Item 2.02.
  Results
  of Operation and Financial Condition.
  On May 8, 2008, Activision, Inc.
  (the "Company") issued a press release announcing financial results for the
  Company for the fiscal quarter and year ended March 31, 2008. A copy of
  the press release is attached hereto as Exhibit 99.1.  As previously announced, the Company hosted a
  conference call and Webcast in conjunction with that release.
  Certain Information Not Filed
  .  The information in this Form 8-K and Exhibit 99.1
  attached hereto shall not be deemed "filed" for purposes of Section 18 of
  the Securities Exchange Act of 1934, nor shall this Form 8-K or such Exhibit 99.1
  or any of the information contained therein be deemed incorporated by reference
  in any filing under the Securities Exchange Act of 1934 or the Securities Act
  of 1933, except as shall be expressly set forth by specific reference in such
  filing.
  Item 9.01.
  Financial
  Statements and Exhibits.
  (d)  Exhibits
  99.1
  Press
    Release dated May 8, 2008
  (filed
    solely for purposes of Rule 14a-12 under the Exchange Act, and furnished
    not filed for purposes of Section 18 of the Exchange Act)
  Important Additional
  Information has been and will be filed with the SEC
  This
  communication is being made, in part, in respect of the proposed business
  combination involving the Company, Vivendi and Vivendi Games. In connection
  with the proposed transactions, the Company has filed with the Securities and
  Exchange Commission (the "SEC") a preliminary proxy statement and other
  documents regarding the proposed transactions, and plans to file with the SEC a
  definitive proxy statement as well as other documents regarding the proposed
  transactions.  The definitive proxy statement
  will be mailed to stockholders of the Company. 
  INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE
  PRELIMINARY PROXY STATEMENT AND OTHER RELEVANT MATERIAL FILED WITH THE SEC, AND
  THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS TO BE FILED WITH THE SEC,
  CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
  CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS.
  Investors
  and security holders may obtain free copies of the preliminary proxy statement
  and other documents filed with the SEC by the Company, and will be able to
  obtain free copies of the definitive proxy statement (when available) and other
  relevant documents to be filed with the SEC by the Company, through the website
  maintained by the SEC at http://www.sec.gov. 
  Free copies of the preliminary proxy statement (and the definitive proxy
  statement, when available) and other documents filed with the SEC can also be
  obtained by directing a request to the Company's Investor Relations department.
  The
  Company and its directors and executive officers and other persons may be
  deemed to be participants in the solicitation of proxies in respect of the
  proposed transaction.  Information
  2
  regarding
  the Company's directors and executive officers is available in its Annual
  Report on Form 10-K for the year ended March 31, 2007, which was
  filed with the SEC on June 14, 2007, and its proxy statement for its 2007
  annual meeting of stockholders, which was filed with the SEC on July 30,
  2007.  Other information regarding the
  participants in the proxy solicitation and a description of their direct and
  indirect interests, by security holdings or otherwise, are contained in the
  preliminary proxy statement and will be contained in other relevant materials
  filed with the SEC (and will be contained in the definitive proxy statement and
  other relevant materials to be filed with the SEC when they become available).
  THIS
  DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE
  SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER
  TO BUY SHARES OF ACTIVISION'S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN
  OFFER TO PURCHASE AND RELATED MATERIALS THAT ACTIVISION INTENDS TO FILE WITH
  THE SEC.  ONCE FILED, ACTIVISION
  STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING ANY
  DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION,
  INCLUDING THE TERMS AND CONDITIONS OF THE OFFER.  ONCE FILED, ACTIVISION STOCKHOLDERS WILL BE
  ABLE TO OBTAIN THE OFFER TO PURCHASE AND RELATED MATERIALS WITH RESPECT TO THE
  OFFER FREE OF CHARGE AT THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV, OR FROM THE
  INFORMATION AGENT NAMED IN THE TENDER OFFER MATERIALS.
  3
  SIGNATURE
  Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  Date: May 8, 2008
  ACTIVISION, INC.
  By:
  /s/ Thomas Tippl
  Thomas Tippl
  Chief Financial Officer of Activision
  Publishing, Inc.
  (Principal Financial and Accounting Officer
    of
  Activision, Inc)
  4
  EXHIBIT INDEX
  Exhibit No.
  Description
  99.1
  Press Release dated
    May 8, 2008
  (filed
    solely for purposes of Rule 14a-12 under the Exchange Act, and furnished
    not filed for purposes of Section 18 of the Exchange Act)
  5
  C
  ontacts:
  Kristin Southey
  Vice President, Investor
    Relations
  (310) 255-2635
  ksouthey@activision.com
  Maryanne Lataif
  Vice President, Corporate
    Communications
  (310) 255-2704
  mlataif@activision.com
  FOR
  IMMEDIATE RELEASE
  ACTIVISION
  REPORTS RECORD Q4 AND FISCAL YEAR 2008 RESULTS
  MARKING
  16 CONSECUTIVE YEARS OF REVENUE GROWTH
  -
  FY 2008 Net Revenues of $2.90 Billion, Increase of
  92% Year Over Year-
  -
  Company Exceeds Peak Cycle Operating Margin Target
  -
  -
  FY 2008 Earnings Per Diluted Share Grow 293% to
  Record $1.10  –
  -
  Company Provides Growth Outlook for Fiscal Year
  2009 -
  Santa Monica, CA – May 8,
  2008
  –
  Activision, Inc. (Nasdaq: ATVI)
  today announced record fiscal year 2008 and fourth quarter results.
  Net revenues for the fiscal
  year ended March 31, 2008 were $2.90 billion, as compared to $1.51 billion
  for the fiscal year ended March 31, 2007. 
  Net income for the fiscal year was $344.9 million, or $1.10 in earnings
  per diluted share, as compared to net income of $85.8 million, or $0.28 in
  earnings per diluted share reported for the last fiscal year.   Excluding the impact of expenses related to
  equity-based compensation, the company reported non-GAAP net income of $377.5
  million and non-GAAP earnings per diluted share of $1.20 for the fiscal year.
  This compares to non-GAAP net income of $101.3 million and non-GAAP earnings
  per diluted share of $0.33 for the last fiscal year, in each case excluding the
  impact of expenses related to equity-based compensation.
  Net revenues for the fourth
  quarter ended March 31, 2008 were $602.5 million, as compared to $312.5
  million that the company reported for the fourth quarter of the last fiscal
  year.
  (more)
  For the fourth quarter, the
  company reported net income of $44.2 million, or earnings per diluted share of
  $0.14, as compared to a net loss of $14.4 million, or a loss per share of
  $0.05, for the fiscal year 2007 fourth quarter. 
  Excluding the impact of expenses related to equity-based compensation
  expense, the company reported non-GAAP net income of $54.9 million and non-GAAP
  earnings per diluted share of $0.17 for the quarter.  This compares to a non-GAAP net loss of $10.1
  million and a non-GAAP loss per share of $0.04 for the fourth quarter of last
  fiscal year, in each case excluding the impact of expenses related to
  equity-based compensation.
  Robert
  Kotick, Chairman and CEO of Activision, Inc. commented, "Fiscal 2008 was
  the best year in our history and Q4 was the largest and most profitable
  non-holiday quarter, even though we did not release any new titles.  During the fiscal year, we were the #1 U.S.
  console and handheld publisher in dollars for the first time ever, according to
  The NPD Group, and we grew our worldwide share of the console, handheld and PC
  markets year over year.  We achieved
  record financial performance significantly growing both net revenues and
  earnings per share.  And, we delivered a
  record operating margin of 16.5% on a GAAP basis, and 18.4% on a non-GAAP
  basis, excluding the impact of equity-based compensation, and we increased stockholder's
  equity by 38%.
  "
  Kotick
  continued, "In
  fiscal 2009, we expect to deliver another year of growth.  We remain committed to strengthening our
  global leadership position by continuing to execute on our growth strategies
  and cost-optimization initiatives.  We
  own or control some of the most successful brands in interactive entertainment,
  and we will continue to focus our resources on proven properties with broad
  global appeal.  Our solid lineup, which
  includes new titles based on such blockbuster brands as
  Call of Duty
  ®,
  Guitar Hero
  ® and
  James Bond,
  should
  enable us to continue capitalizing on growth in interactive entertainment
  consumption worldwide."
  Kotick
  added, "With respect to our pending combination with Vivendi Games, we are on
  track to complete our transaction, which will create the world's largest and
  most profitable independent video game company. 
  We are pleased that Blizzard's business maintained its momentum, and
  combined with our continued business strength, we are well positioned to exceed
  the financial goals we have set for the combined company at the time of the
  deal announcement.   The combination of
  Activision's solid portfolio and Vivendi Games proven properties should enable
  us to continue delivering exceptional returns to our stockholders."
  (more)
  Business Highlights
  Activision's
  fiscal year results were driven by strong worldwide consumer response to
  Call of Duty® 4: Modern Warfare™
  ,
  Guitar Hero® III: Legends of Rock
  ,
  Spider-Man
  3™
  ,
  Shrek The Third™,
  as well as its new
  licensed intellectual property
  TRANSFORMERS: The Game
  .
  The
  company's fourth quarter results were driven by strong market conditions and
  the continued success of
  Guitar Hero III: Legends
  of Rock
  and
  Call of Duty 4: Modern
  Warfare.
  ·
  During the fiscal year, in
  the U.S., Activision grew its market share by 7.2% to a record 17.3%, was the
  #1 console and handheld software publisher in dollars, and had three top-10 best-selling
  titles in dollars overall according to The NPD Group.
  ·
  For the fiscal year,
  Activision set an industry record for U.S. sell-through in dollars by a single
  publisher, according to The NPD Group.
  ·
  Guitar Hero III: Legends
  of Rock
  was the #1 best-selling game in the U.S. and Europe
  in dollars during the fiscal year, according to The NPD Group, Charttrack and
  Gfk.
  ·
  For the fiscal year,
  Call of Duty
  4:
  Modern Warfare
  was the #2 best-selling game worldwide in units,
  selling more than 9 million units as of March 31, 2008, according to The
  NPD Group, Charttrack and Gfk.
  ·
  For the fiscal year,
  Call of Duty 4: Modern Warfare
  was
  the #1 best-selling PC title in dollars worldwide, according to The NPD Group,
  Charttrack and Gfk.
  ·
  During the fiscal year, both
  the
  Guitar Hero
  and
  Call of Duty
  franchises surpassed a billion dollars in life to date sales.
  ·
  Spider-Man 3™
  and
  TRANSFORMERS: The Game
  were the #1
  and #2 best-selling movie based games in dollars worldwide for fiscal year
  2008, according to The NPD Group, Charttrack and Gfk.
  ·
  Activision grew its European
  market share from 4.8% to 7.4% during the fiscal year, according to Charttrack
  and Gfk.
  (more)
  ·
  Activision's international
  publishing revenues grew in excess of 100% year over year.
  ·
  According to The NPD Group,
  for the fourth quarter, Activision ranked as the #1 U.S. console, handheld and
  PC publisher in dollars.
  ·
  On September 26, 2007,
  Activision announced that it had acquired U.K.-based developer Bizarre
  Creations, one of the world's premier video game developers and a leader in the
  racing category.  The acquisition enables
  Activision to enter the $1.5 billion racing category, which is the seventh most
  popular videogame genre and represented more than 7.5% of the total video game
  market worldwide in calendar 2007, according to The NPD Group, Charttrack and
  Gfk.
  ·
  On December 1, 2007,
  Activision and Vivendi entered into a definitive agreement to combine Vivendi
  Games, Vivendi's interactive entertainment business — which includes Blizzard
  Entertainment's® World of Warcraft®, the world's #1 massively multiplayer
  online role playing game franchise with more than 10 million global subscribers
  – with Activision, which at closing will create the world's largest pure-play
  online and console game publisher.   The
  transaction remains subject to approval by Activision's stockholders and other
  customary closing conditions.
  Company
  Outlook
  For the first quarter of fiscal 2009, Activision will release
  Enemy Territory
  ™
  :
  QUAKE WARS
  for the Xbox 360
  ®
  video
  game and entertainment system from Microsoft and PLAYSTATION®3 computer
  entertainment system
  ;
  Kung Fu
  Panda,
  on the Xbox 360 video game and entertainment
  system from Microsoft and PLAYSTATION 3 computer entertainment system,
  PlayStation 2 computer entertainment system, the Nintendo® Wii™, Games for
  Windows® and the Nintendo DS™;
  Guitar Hero®: On Tour
  for the Nintendo DS; and
  Guitar Hero®: Aerosmith®
  for
  the
  Xbox 360 video game and
  entertainment system from Microsoft,  PLAYSTATION
  3 computer entertainment system, PlayStation 2 computer entertainment system
  and the Nintendo Wii.
  (more)
  Activision announced today that
  online functionality for certain key titles to be released in the December quarter
  of fiscal year 2009 and thereafter is expected to become a significant
  component of game play for certain platforms for which the company will have
  continuing performance obligations beyond the sale of the game.  As a result, the company expects to begin
  recognizing a substantial amount of net revenues and costs of sales from these
  online-enabled games over a service period, which we currently estimate to be
  six months beginning the month after shipment.
  Activision anticipates that a
  considerable amount of net revenues and costs of sales that would have been
  recognized in the fiscal year ending March 2009 will be recognized later
  in the calendar year 2009.  While this
  will not impact the economics of Activision's business or its cash flows, these
  changes will have a material impact on the company's fiscal year 2009 GAAP
  results.
  In order to provide comparable
  year-over-year performance information, Activision's non-GAAP results will
  exclude the impact of the change in deferred net revenues and cost of sales
  related to those online-enabled key titles on certain platforms.
  Additionally, in fiscal year
  2009, Activision's non-GAAP results
  will exclude
  one-time costs related to the Vivendi transaction.
  For fiscal year 2009, on a
  stand-alone basis, (not including Vivendi Games), Activision expects net
  revenues of $2.75 billion and earnings per diluted share of $0.72.
  For fiscal 2009, Activision
  expects stand-alone non-GAAP net revenues, excluding the impact of the change
  in deferred revenue related to online-enabled games, to be $3.1 billion.  Excluding the impact of equity-based
  compensation expense ($0.12 per share), one-time costs related to the Vivendi
  transaction ($0.07 per share) and the impact of the change in deferred net
  revenues and cost of sales related to online-enabled games ($0.39 per share),
  Activision expects stand-alone non-GAAP earnings per diluted share of $1.30.
  For the first quarter,
  Activision expects net revenues of $500.0 million and earnings per diluted
  share of $0.04 on a stand-alone basis.  
  Excluding the impact of equity-based compensation expense ($0.02 per
  share) and one-time costs related to the Vivendi transaction ($0.07 per share),
  the company's stand-alone non-GAAP earnings per diluted share outlook is
  expected to be $0.13.
  (more)
  Conference
  Call
  Today
  at 4:30 p.m. EDT, Activision's management will host a conference call and
  Webcast to discuss its fiscal 2008 year-end results and outlook for fiscal
  2009. The company welcomes all members of the financial and media communities,
  and other interested persons, to visit the "Investor Relations" area of
  www.activision.com
  to
  listen to the conference call via a live Webcast or to listen to the call live
  by
  dialing
  in at
  719-325-4752 in the U.S
  .
  Non-GAAP Financial Measures
  Activision provides net income
  (loss) and earnings (loss) per share data both including (in accordance with
  GAAP) and excluding (non-GAAP) the impact of expenses related to employee stock
  options, employee stock purchase plans, restricted stock rights and other
  equity-based compensation and the associated tax benefits, and in the future
  Activision's non-GAAP results will also exclude the impact of the change in
  deferred net revenues and costs of sales, and one-time costs related to the
  Vivendi transaction.
  Additionally, following the completion of the Vivendi
  transaction, Activision will exclude from its non-GAAP results
  the impact of expenses related to intangible amortization,
  as well as any one-time restructuring costs and results related to the
  discontinuation of operations should there be any.
  Prior to April 1, 2006,
  Activision accounted for equity-based compensation under Accounting Principles
  Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB No. 25").  In accordance with APB No. 25, the
  company historically used the intrinsic value method to account for
  equity-based compensation.  Beginning on April 1,
  2006, Activision has accounted for equity-based compensation using the fair
  value method under  Statement of
  Financial Accounting Standards No. 123 (revised 2004), "Share-Based
  Payment" ("FAS 123(R)").
  As online functionality becomes a
  more important component of gameplay, in fiscal 2009,
  the company expects
  that certain online-enabled games, to be released in fiscal 2009, will contain
  a more-than-inconsequential separate service deliverable in addition to the
  product, and its performance obligations for these games extend beyond the sale
  of the games. Vendor-specific objective evidence ("VSOE") of fair value does
  not exist for the online services, as the company does not plan to separately
  charge for this component of online-enabled games.
  (more)
  As a result, for certain key titles to be released in the December quarter
  of fiscal year 2009 and thereafter, the company will recognize all of the
  revenues from the sale of certain online-enabled games for certain platforms
  ratably over an estimated service period, which it currently estimates to be
  six months beginning the month after shipment. In addition, it will defer the
  costs of sales of those titles. As a consequence
  , the
  company's non-GAAP results will exclude the impact of the change in deferred
  revenue and costs of sales related to certain online-enabled games for certain
  of the Microsoft, Sony, Nintendo and PC platforms in order to provide
  comparable year-over-year performance.
  Additionally,
  in order to provide comparable year-over-year performance, as of June 30,
  2008, Activision will exclude from its non-GAAP operating results the impact of
  one-time costs related to the Vivendi transaction.
  Non-GAAP net
  revenue, non-GAAP net income (loss), non-GAAP earnings (loss) per share, and
  non-GAAP operating margin, excluding the impact of changes in
  deferred net
  revenues and cost of sales, one-time costs related to the Vivendi transaction
  and
  expenses related to equity-based compensation, are not
  determined in accordance with GAAP, and the exclusion of those items has the
  effect of increasing non-GAAP net revenue, non-GAAP net income, non-GAAP
  earnings per share and non-GAAP operating margin (and reducing non-GAAP net
  loss and non-GAAP loss per share) by the same amounts as compared with GAAP net
  revenue, GAAP net income (loss), GAAP earnings (loss) per share and GAAP
  operating margin for the period.  
  Activision recognizes that there are limitations associated with the use
  of these non-GAAP financial measures as they do not reflect net revenue, net
  income (loss), earnings (loss) per share and operating margin as determined in
  accordance with GAAP, and may reduce comparability with other companies that
  calculate similar non-GAAP measures differently.
  Management
  compensates for the limitations resulting from the exclusion of these items by
  considering the impact of these items separately and by considering Activision's
  GAAP as well as non-GAAP results and outlook and, in this release, by
  presenting the most comparable GAAP measures, net revenue, net income (loss),
  earnings (loss) per share and operating margin directly ahead of non-GAAP net
  revenue, non-GAAP net income (loss), non-GAAP earnings (loss) per share, and non-GAAP
  operating margin, and by providing a reconciliation which indicates  and describes the adjustments made.
  (more)
  Management
  believes that the presentation of these non-GAAP financial measures provides
  investors with additional useful information to measure Activision's financial
  and operating performance because they allow for a better comparison of results
  between periods. Management further believes that reflecting the use of
  non-GAAP measures that eliminate the impact of deferred revenues and costs of
  sales in its operating results is important to facilitate comparisons to prior
  periods during which the application of its accounting policies did not result
  in deferral of significant amounts of revenues and costs of sales related to
  online-enabled games. Internally, management uses these non-GAAP financial
  measures in assessing the company's operating results, as well as in planning
  and forecasting.
  These non-GAAP
  financial measures should be considered in addition to, not as a substitute for
  or superior to, financial measures determined in accordance with GAAP.
  These non-GAAP
  financial measures are not based on a comprehensive set of accounting rules or
  principles, and the terms non-GAAP net revenue, net income (loss), non-GAAP
  earnings (loss) per share, non-GAAP operating margin do not have a standardized
  meaning.  Therefore, other companies may
  use the same or similarly named measures, but exclude different items, which
  may not provide investors a comparable view of Activision's performance in
  relation to other companies.
  About Activision
  Headquartered in Santa Monica,
  California, Activision, Inc. is a leading worldwide developer, publisher
  and distributor of interactive entertainment and leisure products.  Founded in 1979, Activision posted net
  revenues of $2.90 billion for the fiscal year ended March 31, 2008.
  Activision maintains
  operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland,
  Italy, Sweden, Spain, the Netherlands, Australia, Japan and South Korea.  More information about Activision and its
  products can be found on the company's website, www.activision.com
  .
  Cautionary Note Regarding Forward-looking
  Statements
  :  Information in this press release that
  involves Activision's expectations, plans, intentions or strategies regarding
  the future are forward-looking statements that are not facts and involve a
  number of risks and uncertainties.  In
  this release, they are identified by references to dates after the date of this
  release and words such as "outlook",
  "will," "remains,"
  "to be," "plans," "believes", "may", "expects," "intends," and similar
  expressions.
  (more)
  Factors that could cause Activision's
  actual future results to differ materially from those expressed in the
  forward-looking statements set forth in this release include, but are not
  limited to, sales of Activision's titles in its fiscal year 2009, shifts in
  consumer spending trends, the seasonal and cyclical nature of the interactive
  game market, Activision's ability to predict consumer preferences among
  competing hardware platforms (including next-generation hardware), declines in
  software pricing, product returns and price protection, product delays, retail
  acceptance of Activision's products, adoption rate and availability of new
  hardware and related software, industry competition, rapid changes in
  technology and industry standards, protection of proprietary rights,
  maintenance of relationships with key personnel, customers, vendors and
  third-party developers, domestic and international economic, financial and
  political conditions, foreign exchange rates, integration of recent
  acquisitions and the identification of suitable future acquisition
  opportunities, the timing and successful completion of the combination of
  Activision and Vivendi Games, the combined company's success in integrating the
  operations of Activision and Vivendi Games in a timely manner, or at all, and
  the combined company's ability to realize the anticipated benefits and
  synergies of the transaction to the extent, or in the timeframe,
  anticipated.  Other such factors include
  the further implementation, acceptance and effectiveness of the remedial
  measures recommended or adopted by the special sub-committee of independent
  directors established in July 2006 to review Activision's historical stock
  option granting practices, by the Board and by Activision, the outcome of the
  SEC's formal investigation, the finalization of the proposed settlement of the
  derivative litigation filed in July 2006 against certain current and
  former directors and officers of Activision relating to Activision's stock
  option granting practices, and the possibility that additional claims and
  proceedings will be commenced, including additional action by the SEC and/or
  other regulatory agencies, and other litigation (unrelated to stock option
  granting practices) and any additional risk factors identified in Activision's
  most recent annual report on Form 10-K and quarterly reports on Form 10-Q
  and the preliminary proxy statement most recent filed in connection with the
  proposed transaction with Vivendi.
  The forward-looking statements in
  this release are based upon information available to Activision as of the date
  of this release, and Activision assumes no obligation to update any such
  forward-looking statements.  Forward-looking
  statements believed to be true when made may ultimately prove to be
  incorrect.  These statements are not
  guarantees of the future performance of Activision, Vivendi Games or the
  combined Company and are subject to risks, uncertainties and other factors,
  some of which are beyond its control and may cause actual results to differ
  materially from current expectations.
  Important Additional Information has been and will
  be filed with the SEC
  This
  communication is being made, in part, in respect of the proposed business
  combination involving Activision, Vivendi and Vivendi Games. In connection with
  the proposed transactions, Activision has filed with the Securities and
  Exchange Commission (SEC) a preliminary Proxy Statement and other documents regarding
  the proposed transactions, and plans to file with the SEC a definitive Proxy
  Statement as well as other documents regarding the proposed transactions.  The definitive Proxy Statement will be mailed
  to stockholders of Activision.
  INVESTORS
  AND SECURITY HOLDERS OF ACTIVISION ARE URGED TO READ THE PRELIMINARY PROXY
  STATEMENT AND OTHER RELEVANT MATERIAL FILED WITH THE SEC, AND THE DEFINITIVE
  PROXY STATEMENT AND OTHER DOCUMENTS TO BE FILED WITH THE SEC, CAREFULLY AND IN
  THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
  INFORMATION ABOUT THE PROPOSED TRANSACTIONS.
  Investors
  and security holders may obtain free copies of the preliminary Proxy Statement
  and other documents filed with the SEC by Activision, and will be able to obtain
  free copies of the Proxy Statement (when available) and other relevant
  documents to be filed with the SEC by Activision, through the website
  maintained by the SEC at http://www.sec.gov.
  (more)
  Free
  copies of the preliminary Proxy Statement (and the definitive Proxy Statement,
  when available) and other documents filed with the SEC can also be obtained by
  directing a request to Activision's Investor Relations department.
  Activision
  and its directors and executive officers and other persons may be deemed to be
  participants in the solicitation of proxies in respect of the proposed
  transaction.  Information regarding
  Activision's directors and executive officers is available in its Annual Report
  on Form 10-K for the year ended March 31, 2007, which was filed with
  the SEC on June 14, 2007, and its proxy statement for its 2007 annual
  meeting of stockholders, which was filed with the SEC on July 30,
  2007.  Other information regarding the
  participants in the proxy solicitation and a description of their direct and
  indirect interests, by security holdings or otherwise, are contained in the
  preliminary Proxy Statement and will be contained in other relevant materials
  filed with the SEC (and will be contained in the definitive Proxy Statement and
  other relevant materials to be filed with the SEC when they become available).
  THIS
  DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE
  SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER
  TO BUY SHARES OF ACTIVISION'S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN
  OFFER TO PURCHASE AND RELATED MATERIALS THAT ACTIVISION INTENDS TO FILE WITH
  THE SEC.  ONCE FILED, ACTIVISION
  STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING ANY
  DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION,
  INCLUDING THE TERMS AND CONDITIONS OF THE OFFER.  ONCE FILED, ACTIVISION STOCKHOLDERS WILL BE
  ABLE TO OBTAIN THE OFFER TO PURCHASE AND RELATED MATERIALS WITH RESPECT TO THE
  OFFER FREE OF CHARGE AT THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV, OR FROM THE
  INFORMATION AGENT NAMED IN THE TENDER OFFER MATERIALS.
  Cautionary
  Note Regarding Financial Information Concerning Vivendi and its
  Subsidiaries:  Except as specifically
  described herein, the information concerning Vivendi, Vivendi Games and
  Blizzard contained in this press release has been taken from or is based upon
  information furnished by Vivendi or its representatives. Activision has no
  knowledge that would indicate that any statements contained herein based on
  such documents and records are untrue. However, neither Activision nor any of
  its affiliates assumes any responsibility for the accuracy, currency or
  completeness of the information furnished by Vivendi concerning Vivendi,
  Vivendi Games or Blizzard.
  (Tables to Follow)
  ###
  (more)