Aug. 5 (Bloomberg) -- Activision Blizzard Inc., the largest video-game publisher, said second-quarter profit rose sevenfold on new sales from the merger with a Vivendi SA unit. The company cut its 2009 revenue outlook after delaying a new online title.

Net income jumped to $195 million, or 15 cents a share, from $28 million, or 5 cents, a year earlier, Santa Monica, California-based Activision said today in a statement. Excluding certain items, profit was 8 cents a share, compared with the 7- cent average estimate of analysts surveyed by Bloomberg. Sales almost tripled to $1.04 billion.

Sales soared with the addition of subscribers to “World of Warcraft,” the multiplayer online title that was part of Vivendi’s game division. The role-playing genre accounts for 31 percent of revenue. Another title, “StarCraft II,” will be delayed until the first half of 2010, leading the company to cut its 2009 sales projection by $300 million to $4.5 billion.

“You want to get that game perfect,” said Michael Pachter, an analyst with Wedbush Morgan Securities in Los Angeles. “The value of slipping it a few months is peanuts.”

The personal-computer game could sell 4 million copies globally, with additional revenue from tournaments, subscriptions and purchases for added features, Pachter said.

Activision was little changed in extended trading. The stock fell 28 cents to $11.55 at 4 p.m. New York time in Nasdaq Stock Market trading and has gained 34 percent this year. Activision merged with Vivendi’s games division in July 2008.

Battle.net Service

Chief Executive Officer Bobby Kotick said “StarCraft II” was delayed to coincide with the reintroduction of Battle.net, a service linking players of online games.

Activision also is delaying this year’s release of “Singularity” to the first quarter of 2010.

The delays will “strengthen our competitive advantage for the long term,” Kotick said.

Activision forecasts third-quarter profit, excluding some items, of 3 cents a share. Sales, excluding changes in deferred revenue, will be $700 million. Analysts project profit of 10 cents, the average of 23 estimates compiled by Bloomberg, and sales of $897.7 million on that basis. For the year, they estimated $4.86 billion in revenue.

First-quarter sales, excluding changes in deferred revenue, totaled $801 million. That compared with the $803.3 million average estimate of analysts.

Industry Tumble

U.S. video-game sales dropped 12 percent in the first half of the year, including a 31 percent slide in June that was the largest monthly fall since September 2000, according to NPD Group Inc., the Port Washington, New York-based researcher.

Activision lowered its projection for industry sales in North America and Europe and now predicts revenue will be unchanged to down slightly.

The decline may be hurting music games, one of Activision’s largest businesses. The company releases “Guitar Hero 5” on Sept. 1 and “DJ Hero” later in the year.

“There’s fatigue in that franchise potentially,” Mike Hickey, an analyst with Janco Partners Inc. in Greenwood Village, Colorado, said before the results were announced.

The music genre is down 52 percent from last year, John Riccitiello, chief executive of Electronic Arts Inc., the second-largest publisher, said yesterday on a conference call.

“Music did not get out of the gate strong this year,” said Riccitiello, whose company publishes “Rock Band” with Viacom Inc.

Kotick has urged console makers to cut prices to spur industry growth amid the recession. He said Activision may shift resources away from developing games for Sony Corp.’s PlayStation 3 if the $399.99 price doesn’t come down.

Last week, Kyoto-based Nintendo said Wii sales fell 57 percent and profit dropped 61 percent in the first quarter ended June 30. Sony Corp., based in Tokyo, reported a second-straight loss after PlayStation 3 shipments fell 31 percent.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net

Last Updated: August 5, 2009 17:28 EDT