Activision to Cut 6% of Workforce as Sales Stall

Video game developer Activision Inc. said Monday that it would cut more than 6% of its global workforce of 2,200 amid a rocky industry transition to new console technology.

A spokesman for the second-largest video game publisher said the cuts, which would work out to fewer than 154 jobs, would be across the board.

The move comes after industry leader Electronic Arts Inc. said this month that it had cut less than 5% of its global workforce of 5,000.

Santa Monica-based Activision had the best-selling video game in the United States in January with its “Call of Duty 2” title for Microsoft Corp.’s new Xbox 360 console, according to market researchers NPD Group.

The video game industry has seen sales stall as consumers wait and save for next-generation consoles.

Microsoft was first to market in November with its Xbox 360, but shortages have dented sales of hardware and video games for the new system.

Sony Corp., the leading seller of video game consoles, and Nintendo Co. have said their new systems would debut this year.

Sales of games for existing systems such as the original Xbox and Sony’s PlayStation 2 have softened, even as companies such as Activision and EA slashed game prices in an effort to increase sales.

EA and Activision each have said they expect year-over-year game sales to be flat to down 5% in 2006.

Shares of Activision finished 12 cents higher at $13.07.