Shares in Activision Inc. gained 13 percent Tuesday after the video game developer raised its sales and profit forecasts for the third quarter and the fiscal year on strong game sales.

The Santa Monica-based company said it expects profit for the quarter ending Dec. 31 will be 66 cents per share on sales of about $1.2 billion. The company originally said it expected profits of 51 cents per share on revenue of $1 billion but upped the guidance due to stronger-than-expected demand for its latest title, "Guitar Hero III: Legends of Rock," which arrived in stores last month.

Activision added that it expects profit for the full year to be about 75 cents on sales of $2.3 billion.

Shares in Activision were up 13 percent to $21.39 in early trading Tuesday on the Nasdaq.

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