RPT-PREVIEW-'Call of Duty' game shoots to make history

 (Repeats Nov. 6 story for wider readership)

 * Launches Nov. 10 with 10,000 stores opening at midnight

 * Shooter game expected to rank among all-time top sellers

 * Publisher Activision Blizzard shares outperform rival

 * Analyst says game to account for one-third Q4 EPS

 By Gabriel Madway and Franklin Paul

 SAN FRANCISCO/NEW YORK, Nov 6 Forget the buzz
over the next "Twilight" film or James Cameron's "Avatar." The
biggest entertainment hit of the holiday season may come on
Tuesday, when "Call of Duty: Modern Warfare 2" hits stores.

 The video game published by Activision Blizzard Inc
(ATVI.O) is the most highly anticipated of the year, winning
accolades from gaming blogs and Wall Street analysts alike. But
it also arrives at a time when the weak economy is punishing
sales across the video game industry.

 Activision has plenty riding on the launch, and much to
lose if the game falls short of expectations. Shares of the
company have risen around 30 percent this year, outperforming
chief rival Electronic Arts Inc's ERTS.O 18 percent gain.

 "This is the one game that could buck the economic trend
for the holiday season," said MKM Partners analyst Eric
Handler. He estimates the title will account for 16 cents of
Activision's earnings per share in the December quarter, and
more than one-third of the publisher's bottom line.

 Analysts say "Call of Duty's" audience of hard-core gamers,
generally young men, are likely to hit stores in droves to pick
up the $60 game. Activision is partnering with 12 retailers
including GameStop Corp (GME.N) and Best Buy Co (BBY.N) for
more than 10,000 midnight store openings in North America.

 Sales estimates range from 11 million-13 million units by
end-2009, which would put the game in rarefied company.

 Activision said preorders set a record. The shooter game is
likely to be "one of the largest entertainment launches of any
media of all time," CEO Robert Kotick said this week.

 MKM's Handler expects "Call of Duty" to sell close to 5
million units on the first day, and 7 million-8 million in the
first week. That would beat last year's blockbuster "Grand
Theft Auto IV" from Take-Two Interactive Software Inc (TTWO.O),
which sold 3.6 million units on the first day, and 6 million in
its first week or more than $500 million in sales.

 MILITARY GAME

 The new game is the sixth installment in the "Call of Duty"
franchise, which was launched in 2003.

 It boasts stunning cinematography, with gamers portraying
elite soldiers hunting down targets in South America, Russia,
Kazakhstan, and Afghanistan.

 Players navigate through modern scenarios, ranging from
shooting while racing on life-like snow mobiles, or stealthily
moving through arid locales, hunting down enemy snipers and
avoiding helicopters overhead.

 "Call of Duty" carries a rating of "M," meaning the content
is suitable for those age 17 and older.

 Some critics point fingers at the video game industry for
often graphic depictions of bloodshed -- especially after
sensational acts of public violence. But while the "Grand Theft
Auto" series has been criticized by some for glorifying crime,
"Call of Duty" has not been similarly condemned.

 Next week's release comes at an awkward time. On Thursday,
13 people were killed and 30 wounded in a mass shooting at Fort
Hood in Texas, the biggest military facility in the world. An
army psychiatrist trained to treat war wounded is suspected as
the gunman. [ID:nN06178209]

 When asked if the shooting would affect the launch,
Activision said it was still moving forward and there was
nothing to suggest a connection between the Fort Hood incident
and video games.

 MIDNIGHT OPENING

 Despite the economy, U.S. video game software sales are
expected to grow to $19.5 billion in 2013 from $14.7 billion in
2008, according to PricewaterhouseCoopers. That makes it a
bigger entertainment ticket than Hollywood's $9.6 billion in
2008, according to industry website boxofficemojo.com.

 Much like a summer blockbuster movie, shooter games like
"Call of Duty" tend to have a massive crush of sales in the
first few days as eager gamers flood stores to get their copy.

 "By all indicators, we anticipate 'Call of Duty: Modern
Warfare 2' will be the biggest entertainment launch of 2009, as
well as the biggest video game launch in GameStop's history,"
said Tony Bartel, executive vice president of merchandising and
marketing for GameStop.

 The video game retailer will open 4,200 outlets on Monday
night, some as early as 9 p.m. Some stores will feature
promotional appearances by celebrities and athletes.

 Other popular games this year, such as Nintendo Co Ltd's
7974.OS "Wii Fit" or the "The Beatles: Rock Band" from Viacom
Inc's VIAb.N MTV, have appealed to more casual gamers and
include women and older people in their target demographic.

 The new "Call of Duty" has scared off Activision's
competition, some analysts say.

 "A lot of publishers and developers have pushed their
titles up either well before the release or to after the
holidays, and what that does is just add to 'Call of Duty's'
success," said EEDAR research group analyst Jesse Divnich.
 (Reporting by Gabriel Madway and Franklin Paul, editing by
Tiffany Wu and Matthew Lewis)