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Video-game publisher Activision Blizzard Inc. Wednesday posted better-than-expected quarterly earnings on strong sales of its Guitar Hero and Call of Duty franchises.

Even as the company's competitors cut jobs and set plans to release few titles, Chief Executive Robert Kotick said Activision is pursuing a disciplined strategy that won't include “wholesale layoffs” in 2009.

“We won't be distracted by layoffs and restructuring and things that other companies are going to be distracted with,” Mr. Kotick told Reuters in an interview.

“We don't respond to managing our operating expenses because there's a financial crisis, we do it all the time.”

Activision reported a net loss in its fiscal fourth quarter ended Dec. 31 of $72-million (U.S.), or 5 cents a share.

Excluding items, it posted a profit of 31 cents a share, beating the average analyst estimate of 29 cents a share, according to Reuters Estimates.

Adjusted revenue in the quarter was $2.3-billion – above its previous forecast – and topped the $2.15-billion Wall Street estimate.

Activision forecast a 2009 adjusted profit of 61 cents a share on adjusted revenue of $4.7-billion for 2009, which includes a negative impact of $400-million from a stronger dollar. The average analyst estimate is for earnings of 67 cents a share on revenue of $5.17-billion.

The company was formed through the merger of Activision with Blizzard, the games unit of France's Vivendi SA. The deal closed last July.

Activision's Guitar Hero World Tour and Call of Duty: World at War games were the No. 1 and No. 2 console games, respectively, in North America and Europe in the fourth quarter, according to NPD. In addition, its World of Warcraft was the top-selling PC game in those regions 2008.

Earlier this month, Activision rival Electronic Arts Inc. posted weaker-than-expected results and forecast a loss for the current fiscal year, while smaller competitor THQ Inc. swung to a loss and announced spending and job cuts. Take Two Interactive Software will report next month.

Activision's shares are down more than 40 per cent over the past 6 months, although the company's stock has fared much better than its rivals. EA's stock is down more than 60 per cent.

Overall video game sales seem to be holding up relatively well in a difficult economy. According to the latest research from NPD, combined video game software unit sales across the world's three largest games markets – the United States, the United Kingdom and Japan – grew 11 per cent in 2008.

Shares of Activision closed at $9.48, down 14 cents.