Santa Monica-based video game maker Activision Inc. reported a smaller-than-expected loss for the first quarter ended June 30, a time when video game makers are typically getting ready for the upcoming launch of holiday-season titles.

The maker of “Spider Man” and “Tony Hawk” videogames posted a loss of $3.6 million (2 cents per share), compared with net income of $12 million (6 cents a share) for the year ago period.

Revenues rose to $241.1 million from $211.3 million in the year-ago quarter. Activision said lower margins were partly to blame for the loss on greater revenues.

According to Thomson First Call, analysts were expecting, on average, a loss of 3 cents per share on $203.8 million in revenues.

For the current second quarter, the company predicted it will lose 10 cents per share – more than the 8 cents analysts were expecting. But Activision raised its revenue guidance for all of fiscal 2006, saying it now expects to post revenues of $1.47 billion, up from a previous projection of $1.45 billion. The company’s earnings projection was unchanged at 68 cents a share.

Activision’s recent game titles “Doom 3,” “Madagascar” and “Fantastic 4” have all shipped more than 1 million copies. Video game makers expect lackluster sales over the next quarter or two while consumers wait for the release of next-generation game consoles from Microsoft Corp., Sony Corp. and Nintendo Inc.

Activision’s stock closed at $18.97, down 23 cents, prior to the release of earnings. In after-hours trading after the announcement, the shares continued to slide.