This is $164 million more than expected for the quarter, and up from last year's $1.172 billion.
However, CEO Bobby Kotick said he remains cautious of the near future due to the disappointing Wii U launch and World of Warcraft subscriptions that are declining.
In just three months, WoW subscriptions have dropped by 1.3 million, down to 8.3 million subscribers, a 14 percent decline.
"Though the majority of our subscriber decline occurred mainly in the East, where we have more subscribers and lower revenue per subscriber, we saw declines in the West as well," Activision-Blizzard Kotick said.
Overall, the net revenue outlook for the company has been raised by 3.3 percent for the year, from $4.085 billion to $4.22 billion.