Activision – and the power of digital

All in all, it was a mixed financial quarter for the folks at Activision. Earnings per share were higher than expected, but revenue fell short – which was somewhat shocking for a company that has a reputation for always meeting or beating the guidance it gives investors. The real story of yesterday’s earnings announcement, though, was the force that digital downloads have become for the company.

For the first time, Activsion’s revenue from digital sales topped that of retail sales, as “Modern Warfare 2” continued to flex is muscles.

Read more at Variety’s Technotainment blog

Curbs on Violent Video Games? Makers Brace for Possibility

When the U.S. Supreme Court agreed in April to review a California law prohibiting the sale or rental of violent video games to minors in its next term, it sent shock waves through the gaming industry.

Analysts, insiders and even casual observers had been expecting justices to let stand a lower court ruling, which had declared the law unconstitutional. Once they didn’t, the scramble began to assess the possible implications—and leaders of the industry say they could be dire.

Read more at CNBC.com