Activision has become the first third-party publisher this decade to surpass Electronic Arts in game software sales. The latest sales data released by The NPD Group revealed that Activision raked in $397.8 million in software sales during the first half of the year, while EA titles grossed $365 million durring the same period.

Activision's executives attribute this feat to their marketing strategies: aggressively acquiring development studios, and winning licenses to develop titles based on blockbuster movies. They also credit their retaining the popularity of their homegrown franchises such as Call of Duty and Tony Hawk.

The Guitar Hero franchise has become "the fastest Activision brand in the company's history to hit $1 billion in sales," said the company's Chief Financial Officer Thomas Tippl. Activision acquired Guitar Hero publisher RedOctane last year for a reported $100 million.

"We've never been better positioned as a company to take advantage of the growth in the video game industry," said Bobby Kotick, Activision's longtime Chief Executive. "For 17 years, I've focused on becoming the No. 1 vid-game company, and we're getting a lot closer to achieving that objective."

Activision's lead is expected to be short-lived however, as EA prepared to launch a number of competitive titles in the more crucial second half of the year.