Activision Blizzard will likely lower its financial expectations after the firm reports its calendar Q3 results in early November, analyst Mike Hickey with Janco Partners reckons.

"Despite our enthusiasm for the Company's holiday product line and our belief that the videogame industry will remain relatively resilient during an economic slump, we expect elevated concerns over a fading consumer, retailer hesitance for building inventory and a significantly reduced stock price, has likely afforded management the option to reduce investor expectations," Hickey said in a Thursday research note.

Activision Blizzard's calendar 2008 non-GAAP guidance is $4.9 billion in sales and $1.2 billion in operating income.

This calendar year, the company will launch titles including World of Warcraft: Wrath of the Lich King, Guitar Hero: World Tour and Call of Duty: World at War.

"We see Activision Blizzard as a conceptual blend of Apple and Phillip Morris, combining an innovative entertainment experience with addictive gameplay," Hickey added.

"...We see sales and margin growth into the foreseeable future, benefiting from highly demanded products over a booming console installed base, offset by an economic recession."