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== History == === Founding (1979) === [[File:David Crane (10453626776).jpg|thumb|left|Co-founder David Crane in 2013]] In 1976, [[Warner Communications]] bought [[Atari, Inc.]] from [[Nolan Bushnell]] to help accelerate the [[Atari 2600|Atari Video Computer System]] (Atari VCS or later the Atari 2600) to market by 1977. That same year, Atari began hiring programmers to create games for the system. Prior to Warner's acquisition, the company did not award bonus pay to programmers who worked on profitable games,<ref>{{cite web |title=Classic Gaming Expo Distinguished Guest: ALAN MILLER |url=http://www.cgexpo.com/bios/amiller.htm |work=Classic Gaming Expo |publisher=CGE Services, Corp |access-date=August 22, 2012 |year=1999–2010 |url-status=dead |archive-url=https://web.archive.org/web/20120208143935/http://www.cgexpo.com/bios/amiller.htm |archive-date=February 8, 2012}}</ref><ref>{{cite book|last1=DeMaria|first1=Rusel|last2=Wilson|first2=Johnny L.|title=High Score!: The Illustrated History of Electronic Games|date=2003|publisher=McGraw-Hill/Osborne|location=New York|isbn=0-07-223172-6|page=56|edition=2}}</ref> nor credit the programmers publicly, to prevent them from being recruited by rival game companies.<ref>{{cite web |url=https://www.pastemagazine.com/games/easter-eggs-the-hidden-secrets-of-videogames/ |title=Easter Eggs: The Hidden Secrets of Videogames |first=Jack |last=Yarwood |work=[[Paste (magazine)|Paste]] |date=March 27, 2016 |access-date=March 27, 2016 |archive-url=https://web.archive.org/web/20160330033934/http://www.pastemagazine.com/articles/2016/03/easter-eggs-the-hidden-secrets-of-videogames.html |archive-date=March 30, 2016 |url-status=live}}</ref> Warner Communication's management style was also different from Bushnell's. According to developer [[John Dunn (software developer)|John Dunn]], Warner management treated developers as engineers rather than creative staff, creating conflicts with staff.<ref>{{cite web | url = https://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php?print=1 | title = Atari: The Golden Years -- A History, 1978-1981 | first = Steve | last = Fulton | date = August 21, 2008 | access-date = April 2, 2021 | work = [[Gamasutra]] | archive-date = September 17, 2021 | archive-url = https://web.archive.org/web/20210917215026/https://www.gamasutra.com/view/feature/3766/atari_the_golden_years__a_.php?print=1 | url-status = dead }}</ref> Atari's CEO [[Ray Kassar]], named to that position following Warner's acquisition in 1978, was committed to keeping production costs minimal for Warner.<ref name="gi activision start"/> In early 1979, Atari's marketing department circulated a memo listing the best-selling cartridges from the previous year to help guide game ideas.<ref name="gi activision start"/> Crane noted that the games he was fully responsible for had brought in over {{USD|20 million|long=no}} for the company but he was still only receiving a {{USD|20,000|long=no}} salary.<ref name="Gamasutra">{{cite web |url=https://www.gamedeveloper.com/business/the-history-of-activision |title=The History Of Activision |work=Gamasutra |first=Jeffrey |last=Flemming |access-date=December 30, 2016 |url-status=live |archive-url=https://web.archive.org/web/20161220122651/http://www.gamasutra.com/view/feature/1537/the_history_of_activision.php?print=1 |archive-date=December 20, 2016}}</ref> Out of a development staff of thirty-five, four programmers (Crane, [[Larry Kaplan]], [[Alan Miller (game designer)|Alan Miller]] and [[Bob Whitehead]]), had produced games that had accounted for 60% of Atari's sales.<ref name="gi activision start"/> Crane, Kaplan, Miller, and Whitehead became vocal about the lack of recognition within the company and became known as the "Gang of Four".<ref name="Gamasutra" /> The group met with Kassar in May 1979 to demand that the company treat developers as [[record label]]s treated musicians, with royalties and their names on game boxes. Kaplan, who called the others "the best designers for the [2600] in the world", recalled that Kassar called the four men "towel designers" and claimed that "anybody can do a cartridge".<ref name="hubner19831128">{{cite news |url=https://books.google.com/books?id=sy8EAAAAMBAJ&pg=PA158 |title=What went wrong at Atari? |work=InfoWorld |date=November 28, 1983 |agency=Originally published in the San Jose Mercury News |access-date=March 5, 2012 |last1=Hubner |first1=John |last2=Kistner |first2=William F. Jr. |page=151 |archive-date=January 24, 2021 |archive-url=https://web.archive.org/web/20210124131414/https://books.google.com/books?id=sy8EAAAAMBAJ&pg=PA158 |url-status=live }}</ref> The four made the decision to soon leave Atari and start their own business, but were not sure how to go about it.<ref name="Gamasutra" /> In 1979, the concept of [[third-party developer]]s did not exist,<ref>{{cite news |url=https://news.google.com/newspapers?id=nwsdAAAAIBAJ&pg=3635%2C1989311 |title=Stream of video games is endless |work=Milwaukee Journal |date=December 26, 1982 |access-date=January 10, 2015 |pages=Business 1 |archive-url=https://web.archive.org/web/20160312093025/https://news.google.com/newspapers?id=nwsdAAAAIBAJ&sjid=QX8EAAAAIBAJ&pg=3635%2C1989311 |archive-date=March 12, 2016 |url-status=live}}</ref> as software for [[video game console]]s were published exclusively by makers of the systems for which the games were designed;<ref>{{cite magazine |title=Video Gaming World |magazine=Computer Gaming World |date=November 1988 |last1=Kunkel |first1=Bill |last2=Worley |first2=Joyce |last3=Katz |first3=Arnie |page=54}}</ref> thus the common thinking was that to make console games, one needed to make a console first.<ref name="gi activision start">{{cite magazine | url = https://www.gameinformer.com/b/features/archive/2013/02/26/activisionaries-how-four-programmers-changed-the-game-industry-forever.aspx | archive-url = https://web.archive.org/web/20130301003455/http://www.gameinformer.com/b/features/archive/2013/02/26/activisionaries-how-four-programmers-changed-the-game-industry-forever.aspx | url-status = live | archive-date = March 1, 2013 | title = Activisionaries: How Four Programmers Changed The Game Industry | first = Ben | last = Reeves | date = February 26, 2013 | access-date = April 2, 2021 | magazine = [[Game Informer]] }}</ref> The four decided to create their own independent game development company. They were directed by their attorney to [[Jim Levy]], who was at the time raising [[venture capital]] to get into the software business for early home computers. Levy listened to their plans, agreed with its direction, and helped the four to secure about {{USD|1 million|long=no}} in capital from [[Sutter Hill Ventures]].<ref name="Gamasutra" /> They also checked with legal counsel on their plans to develop games for the Atari VCS, and included litigation fees in their capital investment.<ref name="gi activision start"/> By August, Crane and Miller had left Atari, with Whitehead joining them shortly after.<ref name="hubner19831128" /> Kaplan had also quit Atari in August, but initially decided not to join as he did not like the starting business plan; he came back later to join Activision that December.<ref>{{cite web | url = https://www.ataricompendium.com/archives/interviews/larry_kaplan/interview_larry_kaplan.html | title = Larry Kaplan interview | first = Scott | last = Stilphen | date = 2006 | accessdate = April 2, 2021 | work = Atari Compendium | archive-date = April 29, 2021 | archive-url = https://web.archive.org/web/20210429014836/http://www.ataricompendium.com/archives/interviews/larry_kaplan/interview_larry_kaplan.html | url-status = live }}</ref> Activision was formally founded on October 1, 1979, with Levy serving as CEO. The company was initially named "Computer Arts, Inc." while they considered a better title. The founders had thought of the name VSync, Inc., but feared that the public would not understand or know how to say it. Levy suggested combining "active" and "television" to come up with Activision.<ref>{{Cite news |url=http://www.video-game-ephemera.com/010.htm |title=DAVID CRANE INTERVIEW (1994) |publisher=Video Game Ephemera |access-date=December 10, 2014 |url-status=live |archive-url=https://web.archive.org/web/20160304191930/http://www.video-game-ephemera.com/010.htm |archive-date=March 4, 2016}}</ref><ref>{{cite magazine |url=https://www.wired.com/2007/06/gallery-game-history/ |title=Console Portraits: A 40-Year Pictorial History of Gaming |author=Wired Staff |date=June 15, 2007 |magazine=[[Wired (magazine)|Wired]] |access-date=January 15, 2019 |archive-url=https://web.archive.org/web/20180712215741/https://www.wired.com/2007/06/gallery-game-history/ |archive-date=July 12, 2018 |url-status=live}}</ref> === Early years (1980–1982) === Activision began working out of Crane's garage in the latter half of 1979, each programmer developing their own game that was planned for release in mid-1980: ''[[Dragster (video game)|Dragster]]'', ''[[Fishing Derby]]'', ''Checkers'', and ''[[Boxing (Atari 2600)|Boxing]]''.<ref name="gi activision start"/> The four's knowledge of the Atari 2600, as well as software tricks for the system, helped them make their own games visually distinct from Atari-produced games.<ref name="Gamasutra" /> To further distinguish themselves, Activision's boxes were brightly colored and featured an in-game screenshot on the back cover.<ref name="Gamasutra" /> Instruction manuals for games devoted at least one page to credit the developer. Additionally, for nearly all of Activision's games through 1983, the instruction manuals included instructions for sending the company a photograph of a player's high scores to receive a patch in return.<ref>{{cite magazine |url=https://www.gameinformer.com/b/features/archive/2013/10/26/activision-badges-the-original-gaming-achievement.aspx |title=Activision Badges – The Original Gaming Achievement |first=Kyle |last=Hillard |date=October 23, 2016 |access-date=February 12, 2019 |magazine=[[Game Informer]] |archive-url=https://web.archive.org/web/20190213123800/https://www.gameinformer.com/b/features/archive/2013/10/26/activision-badges-the-original-gaming-achievement.aspx |archive-date=February 13, 2019 |url-status=live}}</ref> Ahead of the release of the first four games, Activision obtained space at the mid-year 1980 [[Consumer Electronics Show]] to showcase their titles, and they quickly obtained favorable press.<ref name="gi activision start"/> The attention afforded to Activision worried Atari, as the four's departure had already created a major dent in their development staff.<ref name="Gamasutra" /> Atari initially tried to tarnish Activision's reputation by using industry press at CES to label those that took trade secrets as "evil, terrible people", according to Crane, and then later threatened to refuse to sell Atari games to retailers that also carried these Activision titles.<ref name="gi activision start"/> By the end of 1980, Atari filed a formal lawsuit against Activision to try to stop the company, claiming the four had stolen trade secrets and violated [[non-disclosure agreement]]s.<ref name="gi activision start"/> The lawsuit was settled by 1982, with Activision agreeing to pay royalties to Atari but otherwise legitimizing the third-party development model.<ref name="Gamasutra" /><ref name="forbes kotick">{{cite web |url=https://www.forbes.com/forbes/2009/0202/052.html#788254c31a16 |title=Activision's Unlikely Hero |first=Peter |last=Beller |date=January 15, 2009 |access-date=February 12, 2019 |work=[[Forbes (magazine)|Forbes]] |archive-url=https://web.archive.org/web/20170806105646/https://www.forbes.com/forbes/2009/0202/052.html#788254c31a16 |archive-date=August 6, 2017 |url-status=live}}</ref> Following the first round of releases, each of the founders developed their own titles, about once a year, over the first few years of the company.<ref name="Gamasutra" /> While their 1980 games were modest hits, one of the company's first successful games was ''[[Kaboom! (video game)|Kaboom!]]'', released in 1981, which was Activision's first game to sell over a million units.<ref name="gi activision start"/> Activision's breakout title was 1982's ''[[Pitfall!]]'', created by Crane. More than four million copies of the game were sold.<ref>{{cite web |url=https://www.ign.com/articles/2008/08/26/top-10-best-selling-atari-2600-games |title=Top 10 Best-Selling Atari 2600 Games |author=Levi Buchanan |website=[[IGN]] |date=August 26, 2008 |access-date=September 24, 2008 |archive-url=https://web.archive.org/web/20110726161836/http://retro.ign.com/articles/903/903024p1.html |archive-date=July 26, 2011 |url-status=live}}</ref> Near the end of 1982, Kaplan left Activision to work on the development of the [[Amiga]] personal computer as he wanted to be more involved in hardware development.<ref name="edge history">{{cite magazine |url=http://www.edge-online.com/features/short-history-activision/ |title=A Short History Of Activision |date=August 24, 2006 |access-date=February 13, 2019 |magazine=[[Edge (magazine)|Edge]] |archive-url=https://web.archive.org/web/20130404231907/http://www.edge-online.com/features/short-history-activision/ |archive-date=April 4, 2013}}</ref><ref name="gi activision start"/> [[File:Carol Shaw Holding Gold River Raid Cartridge.jpg|thumb|left|[[Carol Shaw]] in 1983 with her award plaque for selling over 500,000 copies of ''River Raid'' for Activision]] Total sales for Activision were estimated at {{USD|157 million|long=no}} and revenues at {{USD|60 million|long=no}} ahead of its June 1983 [[initial public offering]]; at this point Activision had around 60 employees.<ref name="Gamasutra" /><ref name="gi activision start"/> [[Danny Goodman]] stated in ''[[Creative Computing]] Video & Arcade Games'' in 1983, "I doubt that there is an active [Atari 2600] owner who doesn't have at least one Activision cartridge in his library".<ref>{{Cite magazine |last=Goodman |first=Danny |author-link=Danny Goodman |date=Spring 1983 |title=Home Video Games: Video Games Update |url=https://www.atarimagazines.com/cva/v1n1/vgupdate.php |magazine=Creative Computing Video & Arcade Games |page=32 |access-date=November 6, 2017 |archive-url=https://web.archive.org/web/20171107020633/http://www.atarimagazines.com/cva/v1n1/vgupdate.php |archive-date=November 7, 2017 |url-status=live}}</ref> The company completed its public offering in June 1983 on NASDAQ under the stock ticker AVSN.<ref name="Gamasutra" /><ref>{{cite web |url=https://www.inc.com/magazine/19830901/2878.html |title=Small Company Initial Public Offerings: June 1983 |date=June 1983 |work=[[Inc. (magazine)|Inc.]] |access-date=February 12, 2019 |archive-date=January 24, 2021 |archive-url=https://web.archive.org/web/20210124131445/https://www.inc.com/magazine/19830901/2878.html |url-status=live }}</ref> === The video game market crash (1983–1988) === The success of Activision, alongside the popularity of the Atari 2600, led to many more home consoles third-party developers as well as other home consoles. Activision produced some of its Atari games for the [[Intellivision]] and [[ColecoVision]] consoles, among other platforms.<ref>{{cite web |url=https://arstechnica.com/gaming/2014/08/the-rise-and-fall-and-rise-and-fall-of-gamings-third-party-exclusives/ |title=The rise and fall (and rise and fall) of gaming's third-party exclusives |first=Kyle |last=Orland |date=August 13, 2014 |access-date=February 12, 2019 |work=[[Ars Technica]] |archive-url=https://web.archive.org/web/20150708081756/http://arstechnica.com/gaming/2014/08/the-rise-and-fall-and-rise-and-fall-of-gamings-third-party-exclusives/ |archive-date=July 8, 2015 |url-status=live}}</ref> However, several new third-party developers also arose, attempting to follow the approach Activision had used but without the experience they had; according to Crane, several of these companies were founded with venture capital and hired programmers with little game design experience off the street, mass-publishing whatever product the developers had made. This was a contributing factor to the [[video game crash of 1983]].<ref name="Gamasutra" /> For Activision, while they survived the crash, they felt its effects in the following years. These third-party developers folded, leaving warehouses full of unsold games, which savvy retailers purchased and sold at a mass discount ({{USD|5|long=no}} compared to Activision's {{USD|40|long=no}} [[manufacturer's suggested retail price]]). While there was still a demand for Activision games, uneducated consumers were more drawn to the heavily discounted titles instead, reducing their income.<ref name="Gamasutra" /> Their quarterly revenue dropped from {{USD|50 million|long=no}} in mid-1983 to about {{USD|6–7 million|long=no}} by the end of 1984, according to Levy, and they were forced to lay off staff, going from about 400 employees to 95 in that period.<ref name="high score activision crash">{{cite book|last1=DeMaria|first1=Rusel|last2=Wilson|first2=Johnny L.|title=High Score!: The Illustrated History of Electronic Games|date=2003|publisher=McGraw-Hill/Osborne|location=New York|isbn=0-07-223172-6|pages=103–105|edition=2}}</ref> Because of this, Activision decided that they needed to diversify their games onto home computers such as the [[Commodore 64]], [[Apple Inc.|Apple]], and [[Atari 8-bit computers]] to avoid completely going out of business like other third-party developers.<ref name="Gamasutra" /> There still was a drain of talent through 1985 from the crash. Miller and Whitehead left in 1984 due to the large devaluation of their stock and went on to form [[Accolade, Inc.|Accolade]].<ref name="Gamasutra" /><ref name="edge history" /> With the video game crash making console game development a risky proposition, the company focused on developing for home computers with games like ''[[Little Computer People]]'' and ''[[Hacker (video game)|Hacker]]'', while Levy tried to keep expenditures in check as they recovered.<ref name="Gamasutra" /> Looking to expand further, Activision acquired, through a corporate merger, the struggling [[text adventure]] pioneer [[Infocom]] in June 1986. This acquisition was spearheaded by Levy, who was a big fan of Infocom's titles and felt the company was in a similar position as Activision.<ref name="edge history" /> About six months after the "Infocom Wedding", Activision's board decided to replace Levy with [[Bruce Davis (video game industry)|Bruce Davis]]. Davis was against the purchase of Infocom from the start and was heavy-handed in its management,<ref name="mit infocom">{{cite web |url=https://web.mit.edu/6.933/www/Fall2000/infocom/infocom-paper.pdf |title=Down From the Top of Its Game: The Story of Infocom, Inc. |date=December 15, 2000 |access-date=February 12, 2016 |publisher=[[Massachusetts Institute of Technology|MIT]] |url-status=live |archive-url=https://web.archive.org/web/20151105111124/http://web.mit.edu/6.933/www/Fall2000/infocom/infocom-paper.pdf |archive-date=November 5, 2015}}</ref> and even attempted to seek a lawsuit to recover their purchase from Infocom's shareholders.<ref name="Gamasutra" /> Crane also found Davis difficult to work with and was concerned with how Davis managed the closure of [[Imagic]], one of the third-party development studios formed after Activision's success in 1981.<ref name="Gamasutra" /> Crane left Activision in 1986 and helped [[Garry Kitchen]] found [[Absolute Entertainment]].<ref name="Gamasutra" /> In late 1986, Activision adopted the Electric Dreams brand, usually used for British software, for titles outside of English for the American market.<ref>{{Cite news |date=September 1986 |title=Electric Dreams Imported Software |pages=3 |work=[[Computer Entertainer]]}}</ref> === Mediagenic (1988–1991) === [[File:3885 Bohannon Drive.jpg|thumb|right|Mediagenic's former headquarters in Menlo Park, {{Circa|2021}}<ref name="InfoWorld">{{cite journal |title=News Briefs: Company Releases Free Upgrade of Reports 1.2 |journal=InfoWorld |date=June 6, 1988 |volume=10 |issue=23 |page=35 |url=https://books.google.com/books?id=-j4EAAAAMBAJ&pg=PA35 |access-date=11 November 2021 |archive-date=September 16, 2024 |archive-url=https://web.archive.org/web/20240916165916/https://books.google.com/books?id=-j4EAAAAMBAJ&pg=PA35#v=onepage&q&f=false |url-status=live }} This source indicates that as of 1988, Mediagenic was based at 3885 Bohannon Drive in Menlo Park.</ref>]] In 1988, Activision began involvement in software besides video games, such as business applications. As a result, Activision changed its corporate name to '''Mediagenic''' to better represent all of its activities.<ref>{{cite magazine |url=https://books.google.com/books?id=oDoEAAAAMBAJ&pg=PA34 |title=Mediagenic Rises from the Ashes, Will Publish Range of Products |page=34 |volume=10 |issue=40 |first=Rachel |last=Parker |magazine=[[InfoWorld]] |date=October 3, 1988 |publisher=InfoWorld Media Group, Inc. |access-date=December 30, 2016 |via=Google Books |url-status=live |archive-url=https://web.archive.org/web/20161230160846/https://books.google.com/books?id=oDoEAAAAMBAJ&pg=PA34&lpg=PA34&dq=mediagenic%20activision%20divisions&source=bl&ots=bW8gBM1_xe&sig=Q99Dme4yB05X7U04oS5zex9SwzI&hl=en&sa=X&ved=0ahUKEwjB4P-ti6bQAhWn64MKHdrkDWQQ6AEIWDAN |archive-date=December 30, 2016}}</ref><ref name="Gamasutra" /> Mediagenic consisted of four groups: * Activision: video game publisher for various platforms, notably the [[Nintendo Entertainment System]], [[Master System]], [[Atari 7800]], [[Atari ST]], [[Commodore 64]], and [[Amiga]] * [[Infocom]]: developer of interactive fiction games * [[Scott Orr#GameStar|Gamestar]]: initially an independent company but purchased by Activision in 1986. Specialized in sports video games * Ten Point O: business application software In 1989, after several years of losses, Activision closed down the Infocom studios, extending to only 11 of the 26 employees an offer to relocate to Activision's [[Silicon Valley]] headquarters. Five of them accepted this offer.<ref name="mit infocom" /> Notably during this time, Mediagenic was known to have worked on the early version of a football game that was the basis for ''[[Joe Montana Football]]''. Sega of America's Michael Katz had been able to get Sega to pay Mediagenic around early 1990 to develop this into the branded version after securing the rights to [[Joe Montana]]'s name, but was unaware of internal troubles that had been going on within the company, which had left the state of the game mostly unfinished. Katz and Sega were forced to take the incomplete game to [[Electronic Arts]], which had been developing its own ''[[John Madden Football]]'' series for personal computers, to complete the game.<ref>{{cite book | title = The Ultimate History of Video Games, Volume 1: From Pong to Pokemon and Beyond ... the Story Behind the Craze That Touched Our Lives and Changed the World | first= Steven L. | last = King | publisher = Crown | year = 2010 | isbn = 978-0307560872 | chapter = Chapter 22: The Year of the Hardware }}</ref> During this period Mediagenic, via Activision, secured the rights to distribute games from [[Cyan Worlds]]. The first game published by Activision from Cyan was ''[[The Manhole]]'', on [[CD-ROM]] for personal computers, the first major game distributed in this format.<ref>[https://www.wired.com/thisdayintech/2008/09/sept-24-1993-beautiful-myst-ushers-in-era-of-cd-rom-gaming/ "Sept. 24, 1993: Beautiful 'Myst' Ushers In Era of CD-ROM Gaming"] {{Webarchive|url=https://web.archive.org/web/20121104182909/http://www.wired.com/thisdayintech/2008/09/sept-24-1993-beautiful-myst-ushers-in-era-of-cd-rom-gaming/ |date=November 4, 2012}} Wired Magazine</ref><ref>{{cite magazine |url=https://www.cgwmuseum.org/galleries/index.php?year=1992&pub=2&id=100 |title=3900 Games Later... |magazine=Computer Gaming World |date=November 1992 |access-date=July 4, 2014 |author=Sipe, Russell |page=8 |archive-url=https://web.archive.org/web/20140702235552/http://www.cgwmuseum.org/galleries/index.php?year=1992&pub=2&id=100 |archive-date=July 2, 2014 |url-status=live}}</ref><ref name="gi activision start"/> === Purchase by Bobby Kotick (1991–1997) === Davis' management of Mediagenic failed to produce a profitable company; in 1991, Mediagenic reported a loss of {{USD|26.8 million|long=no}} on only {{USD|28.8 million|long=no}} of revenue and had over {{USD|60 million|long=no}} in debt.<ref name="Gamasutra" /><ref name="brick">{{cite journal |archive-url=https://web.archive.org/web/19980128082919/http://www.newmedia.com/NewMedia/96/09/screens/Activision_Rebound.html |url=https://newmediadenver.com/NewMedia/96/09/screens/Activision_Rebound.html |title=Activision: Reorganized, Redefined and on the Rebound |date=June 24, 1996 |author=Sengstack, Jeff |archive-date=January 28, 1998 |journal=NewMedia |url-status=dead |access-date=May 6, 2019}}</ref> This debt included a {{USD|6 million|long=no}} penalty against Mediagenic in May 1990 after losing patent infringement lawsuits filed against it by [[Magnavox]] over the similarities of Activition's games to Magnavox's patents.<ref name="schreier play nice chap12">Schreier, 2024, Chapter Twelve: Bobby</ref> Cyan severed their contract with Activision, and turned to [[Broderbund]] for publishing, including what became one of the most significant computer games of the 1990s, ''[[Myst]]''.<ref name="brick" /> [[File:Bobby Kotick executive photo.jpg|thumb|right|upright|Bobby Kotick]] [[Bobby Kotick]] had become interested in the value of the video game industry following the crash, and he and three other investors worked to buy [[Commodore International]] in an effort to gain access to the [[Amiga]] line of personal computers. After failing to complete purchase, the group bought a company that licensed [[Nintendo]] characters, and through Nintendo was directed to the failing Mediagenic.<ref name="mw">{{cite web |url=https://www.marketwatch.com/story/bobby-kotick-changes-game-activision |title=Kotick changes the game at Activision Blizzard |first=Dan |last=Gallagher |date=December 4, 2008 |access-date=February 12, 2019 |work=[[Market Watch]] |archive-url=https://web.archive.org/web/20190308043931/https://www.marketwatch.com/story/bobby-kotick-changes-game-activision |archive-date=March 8, 2019 |url-status=live}}</ref> Kotick was drawn to buy out Mediagenic not for its current offerings but for the Activision name, given its past successes with ''Pitfall!'', with hopes to restore Activision to its former glory.<ref>{{cite web |url=https://www.ign.com/articles/2010/02/18/activision-passed-on-the-sims |title=Activision Passed on The Sims |first=Matt |last=Casamassina |date=February 18, 2010 |access-date=March 2, 2019 |work=[[IGN]] |archive-url=https://web.archive.org/web/20190306043610/https://www.ign.com/articles/2010/02/18/activision-passed-on-the-sims |archive-date=March 6, 2019 |url-status=live}}</ref> After failing to negotiate a purchase with Davis, Kotick and additional investors bought Mediagenic in a [[hostile takeover]] for approximately {{USD|500,000|long=no}} in 1991. This group of investors included real estate businessman [[Steve Wynn]] and [[Philips Electronics]].<ref name="schreier play nice chap12"/><ref name="nytimes dec1993">{{cite news |url=https://www.nytimes.com/1993/12/28/business/market-place-home-software-s-treasure-hunt.html |title=Market Place; Home Software's Treasure Hunt |first=Steve |last=Lohr |date=December 28, 1993 |access-date=February 13, 2019 |work=[[The New York Times]] |archive-url=https://web.archive.org/web/20190214002846/https://www.nytimes.com/1993/12/28/business/market-place-home-software-s-treasure-hunt.html |archive-date=February 14, 2019 |url-status=live |url-access=limited}}</ref><ref name="mw" /> Kotick became CEO of Mediagenic on its purchase and made several immediate changes: He let go of all but 8 of the companies' 150 employees, performed a full restructuring of the company, developed a bankruptcy restructuring plan, and reincorporated the company in Los Angeles, California.<ref name="forbes kotick" /> In the bankruptcy plan, Kotick recognized that Mediagenic still had valuable assets, which included the Infocom library as well as its authoring tools to make games, Activision's distribution network, and licenses to develop on Nintendo and Sega home consoles.<ref name="brick" /> Kotick offset some debt by giving stock in the company to its distributors as to keep them vested in the company's success; this included convincing [[Philips Electronics]], Magnavox's parent company, to convert their legal debt into stock in Activision.<ref name="schreier play nice chap12"/><ref name="brick" /> Kotick also had the company reissue several of its past console and Infocom titles as compilations for personal computers. Kotick had also recognized the value of the ''[[Zork]]'' property from Infocom, and had the company develop a sequel, ''[[Return to Zork]]''. Combined, these steps allowed Mediagenic to fulfill on the bankruptcy plan, and by the end of 1992, Kotick renamed Mediagenic to the original Activision name.<ref name="brick" /> The new Activision went public in October 1993, raising about {{USD|40 million|long=no}},<ref name="forbes kotick" /> and was listed on NASDAQ under its new ticker symbol '''ATVI'''.<ref name="nytimes dec1993" /> By 1995, Kotick's approach had met one promise he made to investors: that he would give them four years of 50% growth in revenues while remaining break-even. Reaching this goal, Kotick then set Activision on his second promise to investors, to develop high-demand games and make the company profitable by 1997.<ref name="brick" /> Activision published the first-person perspective ''[[MechWarrior (1989 video game)|MechWarrior]]'' in 1989, based on [[FASA]]'s pen-and-paper game ''[[BattleTech]]''. A sequel, ''[[MechWarrior 2]]'', was released in 1995 after two years of delays and internal struggles, prompting FASA not to renew their licensing deal with Activision. To counter, Activision released several more games bearing the ''MechWarrior 2'' name, which did not violate their licensing agreement. These included ''NetMech'', ''[[MechWarrior 2: Ghost Bear's Legacy]]'', and ''[[MechWarrior 2: Mercenaries]]''. The entire ''MechWarrior 2'' game series accounted for more than {{US$|70 million}} in sales. Activision procured the license to another pen-and-paper-based [[Wargaming|war game]], ''[[Heavy Gear]]'', in 1997. [[Heavy Gear (video game)|The video game version]] was well received by critics, with an 81.46% average rating on [[GameRankings]] and being considered the best game of the genre at the time by [[GameSpot]]. The ''Mechwarrior 2'' engine was also used in other Activision games, including 1997's ''[[Interstate '76]]'' and 1998's ''[[Battlezone (1998 video game)|Battlezone]]''. === Growth and acquisitions (1997–2008) === [[File:Activisionheadquarters.jpg|thumb|right|Former Activision headquarters in Santa Monica in 2008]] With several of its own successfully developed games helping to turn a profit, Kotick led Activision to start seeking acquisitions of video game development studios, guided by market surveys to determine what areas of content to focus on.<ref name="mw" /> It is estimated that between 1997 and 2008, Activision made 25 acquisitions, several for undisclosed amounts. Several of these came prior to 2001, in the midst of the [[Dot-com bubble]], enabling the company to acquire studios at a lower valuation.<ref name="mw" /> On June 16, 2000, Activision reorganized as a [[holding company]], Activision Holdings, to manage Activision and its subsidiaries more effectively.<ref name="Activision Holding">{{cite web |url=https://www.activision.com/investor/pressreleases/218.html |title=Activision Announces New Holding Company Reorganization |first1=Maryanne |last1=Lataif |first2=Kristin |last2=Mulvihill |date=June 16, 2000 |website=Activision |archive-url=https://web.archive.org/web/20010107203700/http://www.activision.com/investor/pressreleases/218.html |archive-date=January 7, 2001 |url-status=unfit}}</ref> Activision changed its corporate name from "Activision, Inc." to "Activision Publishing, Inc.", while Activision Holdings took Activision's former "Activision, Inc." name.<ref name="Activision Holding" /> Activision Publishing became a wholly owned subsidiary of Activision, which in turn became the publicly traded company, with all outstanding shares of capital stock converted.<ref name="Activision Holding" /><ref name="pcgamer hirshberg">{{cite web |url=https://www.pcgamer.com/activision-publishing-ceo-eric-hirshberg-is-leaving-the-company/ |title=Activision Publishing CEO Eric Hirshberg is leaving the company |first=Andy |last=Chalk |date=January 18, 2018 |access-date=January 18, 2018 |work=[[PC Gamer]] |archive-url=https://web.archive.org/web/20180119072905/http://www.pcgamer.com/activision-publishing-ceo-eric-hirshberg-is-leaving-the-company/ |archive-date=January 19, 2018 |url-status=live}}</ref> Some of the key acquisitions and investments made by Activision in this period include: * [[Raven Software]]: Raven was founded in 1990; because of their close proximity, Raven frequently collaborated with [[id Software]], and one of the studio's early successes was the ''[[Heretic (video game)|Heretic]]'' series using id's [[Doom engine]]. Around 1997, Raven's founders Brian and Steve Raffel felt the need to seek a parent company. They arranged a publishing deal with Activision in 1997, which not only served to provide Raven additional financial support, but also gave Activision the opportunity to work closely with id Software and gain business relationships with them.<ref>{{cite web |title=From Dungeon & Dragons to Call of Duty: The Story of Raven Software |url=https://www.usgamer.net/articles/raven-software |website=USgamer.net |date=October 28, 2014 |access-date=February 15, 2016 |archive-url=https://web.archive.org/web/20170827165702/http://www.usgamer.net/articles/raven-software |archive-date=August 27, 2017 |url-status=live}}</ref> By the end of 1997, Activision acquired Raven as one of its first subsidiaries under Kotick.<ref>{{cite web |url=https://variety.com/1997/biz/news/activision-set-to-acquire-raven-1116676216/ |title=Activision set to acquire Raven |first=Paul |last=Karon |date=August 8, 1997 |access-date=February 14, 2019 |work=[[Variety (magazine)|Variety]] |archive-url=https://web.archive.org/web/20190214233438/https://variety.com/1997/biz/news/activision-set-to-acquire-raven-1116676216/ |archive-date=February 14, 2019 |url-status=live}}</ref> The acquisition price was $12 million.<ref>{{cite web|first=Karen|last=Kaplan|url=https://www.latimes.com/archives/la-xpm-1997-aug-07-fi-20136-story.html|title=Activision to Expand Game Lineup with Raven Purchase|newspaper=[[Los Angeles Times]]|date=August 7, 1997|accessdate=August 17, 2021|archive-date=December 31, 2022|archive-url=https://web.archive.org/web/20221231050732/https://www.latimes.com/archives/la-xpm-1997-aug-07-fi-20136-story.html|url-status=live}}</ref> * [[Neversoft]]: Prior to its acquisition in 2000, Activision had arranged a development deal with Neversoft to re-develop ''[[Apocalypse (video game)|Apocalypse]]'', a title that failed to be completed within Activision. Subsequently, Activision had Neversoft work on a prototype for a [[skateboard]]ing game, which became the first in the ''[[Tony Hawk's (series)|Tony Hawk's]]'' series of skateboarding video games. ''[[Tony Hawk's Pro Skater]]'' was a critical success, leading Activision to acquire Neversoft in April 2000.<ref>{{cite web |url=https://www.gamespot.com/articles/activision-acquires-neversoft/1100-2448473/ |title=Activision Acquires Neversoft |first=Sam |last=Kennedy |date=April 27, 2000 |access-date=February 13, 2019 |work=[[GameSpot]] |archive-url=https://web.archive.org/web/20190214002759/https://www.gamespot.com/articles/activision-acquires-neversoft/1100-2448473/ |archive-date=February 14, 2019 |url-status=live}}</ref> After eight games, the series has brought in {{USD|1.6 billion|long=no}}.<ref name="forbes kotick" /> * [[Infinity Ward]]: After [[Electronic Arts]] released ''[[Medal of Honor: Allied Assault]]'' in 2002, several of the developers from [[2015, Inc.]], disenchanted with their current contracts, left to form a new studio, Infinity Ward. Kotick himself provided the group with startup funding, as they were seeking to develop a similar title to ''Medal of Honor''. Activision acquired the studio for {{USD|5 million|long=no}} in January 2003, and later publish their first title, ''[[Call of Duty (video game)|Call of Duty]]'', directly competing with Electronic Arts.<ref name="forbes kotick" /> The ''[[Call of Duty]]'' series has since seen nearly yearly releases and as of 2016 had sold more than 250 million units and brought in more than {{USD|12 billion|long=no}} in revenue.<ref>{{cite web |url=https://www.businesswire.com/news/home/20160211006451/en |title=Activision Blizzard Announces Fourth Quarter and Full Year 2015 Financial Results |publisher=[[Business Wire]] |date=February 11, 2016 |access-date=December 7, 2016 |archive-url=https://web.archive.org/web/20161220082153/http://www.businesswire.com/news/home/20160211006451/en |archive-date=December 20, 2016 |url-status=live}}</ref> * [[Treyarch]]: The Santa Monica, California studio was founded in 1996. With the success of the first ''Tony Hawk'' game from Neversoft, Activision used Treyarch to assist in further ''Tony Hawk'' games as well as to develop titles using Activision's license of [[Marvel Comics|Marvel]]'s [[Spider-Man]]. Activision acquired the studio in 2001 for about {{USD|20 million|long=no}}.<ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-2001-oct-04-fi-53391-story.html |title=Activision to Acquire Treyarch Invention |date=October 4, 2001 |access-date=February 14, 2019 |agency=[[Reuters]] |via=[[Los Angeles Times]] |archive-url=https://web.archive.org/web/20160301163903/http://articles.latimes.com/2001/oct/04/business/fi-53391 |archive-date=March 1, 2016 |url-status=live}}</ref> Following the success of ''Call of Duty'' from Infinity Ward, Activision moved Treyarch to assist in the series' development, trading off each year' major release between the two studios. * [[Gray Matter Studios]]: While Gray Matter was originally founded in 1993 as Xatrix Entertainment, it was rebranded to Gray Matter in 1999 as they began work on ''[[Return to Castle Wolfenstein]]'', in conjunction with [[Nerve Software]] and oversight by id Software who owned the ''Castle Wolfenstein'' IP. Activision, the game's publisher, acquired a portion of Gray Matter's stock during this time. ''Return to Castle Wolfenstein'' was a critical and financial success, and led Activision to acquire the remaining shares of Gray Matter in 2002 for about {{USD|3.2 million|long=no}},<ref>{{cite web |url=https://www.wsj.com/articles/SB1011018184632447240 |title=Activision Acquires Rest Of Gray Matter Interactive |date=January 14, 2002 |access-date=February 14, 2019 |work=[[The Wall Street Journal]] |archive-url=https://web.archive.org/web/20180613085929/https://www.wsj.com/articles/SB1011018184632447240 |archive-date=June 13, 2018 |url-status=live}}</ref> with the intent to help Infinity Ward expand out the ''Call of Duty'' franchise. In 2005, Activision made the decision to merge the smaller Gray Matter into the larger Treyarch to put their combined talents towards ''Call of Duty 3''.<ref>{{cite web |url=https://www.polygon.com/2018/5/8/17316562/call-of-duty-black-ops-zombies-treyarch-interview |title=Meet the studio behind Call of Duty: Black Ops and Zombies mode |first=Charlie |last=Hall |date=May 8, 2018 |access-date=February 14, 2019 |work=[[Polygon (website)|Polygon]] |archive-url=https://web.archive.org/web/20180630052949/https://www.polygon.com/2018/5/8/17316562/call-of-duty-black-ops-zombies-treyarch-interview |archive-date=June 30, 2018 |url-status=live}}</ref> * [[RedOctane]]: Around 2005, Red Octane was co-developing ''[[Guitar Hero]]'', a console game based on the arcade game ''[[GuitarFreaks and DrumMania|GuitarFreaks]]'', with [[Harmonix]]; Harmonix was developing the software while RedOctane developed the instrument controllers. ''Guitar Hero'' was a major success. Activision purchased RedOctane for nearly {{USD|100 million|long=no}} in June 2006. The series has since earned more than {{USD|2 billion|long=no}} in revenues.<ref name="forbes kotick" /> * [[Toys for Bob]]: Toys for Bob was founded by [[Paul Reiche III]], [[Fred Ford (programmer)|Fred Ford]], and Terry Falls in 1989 and gained success in developing the first two ''[[Star Control]]'' games, and later made film-to-video game adaptions. Activision purchased the studio in 2005, and had given them work on some of the ''Tony Hawk's'' games as well as other licensed properties.<ref>{{cite web |url=https://www.ign.com/articles/2005/05/03/activision-buys-toys-for-bob |title=Activision Buys Toys for Bob |first=David |last=Adams |date=May 3, 2005 |access-date=March 2, 2019 |work=[[IGN]] |archive-url=https://web.archive.org/web/20190306044722/https://www.ign.com/articles/2005/05/03/activision-buys-toys-for-bob |archive-date=March 6, 2019 |url-status=live}}</ref> Following Activision's merger with Vivendi, Activision gained the ''[[Spyro]]'' intellectual property and assigned Toys for Bob to develop the series in a new direction, leading to the [[toys-to-life]] ''[[Skylanders]]'' series.<ref>{{cite web |url=https://venturebeat.com/2012/10/05/how-paul-reiche-turned-activision-into-a-giant-toy-company-with-skylanders-interview/ |title=How Toys for Bob turned Activision into a giant toy company with Skylanders |first=Dean |last=Takahashi |date=October 5, 2012 |access-date=March 2, 2019 |work=[[Venture Beat]] |archive-url=https://web.archive.org/web/20190306111558/https://venturebeat.com/2012/10/05/how-paul-reiche-turned-activision-into-a-giant-toy-company-with-skylanders-interview/ |archive-date=March 6, 2019 |url-status=live}}</ref> === Merger with Vivendi Games (2008) === {{main|Activision Blizzard}} While Activision was highly successful with its range of developers and successful series, Kotick was concerned that they did not have a title for the growing [[massively multiplayer online]] market, which presented the opportunity for continued revenues from subscription models and microtransactions instead of the revenue from a single sale. Around 2006, Kotick contacted [[Jean-Bernard Lévy]], the new CEO of [[Vivendi]], a French media conglomerate. Vivendi had a games division, [[Vivendi Games]], that was struggling to be viable at the time, but its principal feature was that it owned [[Blizzard Entertainment]] and its highly successful ''[[World of Warcraft]]'' game, which was drawing in {{USD|1.1 billion|long=no}} a year in subscription fees. Vivendi Games also owned [[Sierra Entertainment]].<ref name="forbes kotick" /> Lévy recognized Kotick wanted control of ''World of Warcraft'', and offered to allow the companies to merge, but only if Lévy held the majority shares in the merged group, forcing Kotick to cede control. Kotick fretted about this decision for a while, according to friends and investors. During this time in 2006–2007, some of Activision's former successful properties began to wane, such as ''Tony Hawk's'', so Activision bought [[RedOctane]], the publisher of the ''Guitar Hero'' franchise.<ref name="forbes kotick" /> Kotick met with Blizzard's president [[Mike Morhaime]], and learned that Blizzard also had a successful inroad into getting their games into China, a potentially lucrative market. Given this potential opportunity, Kotick agreed to the merger.<ref name="forbes kotick" /> Activision's board signed on to the merger by December 2007.<ref>{{cite news |title=Vivendi To Merge With Activision |url=https://www.forbes.com/2007/12/02/vivendi-computer-guitar-tech-media-cx_rr_1202activision.html |work=Forbes |access-date=August 22, 2012 |first=Rachel |last=Rosmarin |date=December 2, 2007 |url-status=live |archive-url=https://web.archive.org/web/20130620012647/http://www.forbes.com/2007/12/02/vivendi-computer-guitar-tech-media-cx_rr_1202activision.html |archive-date=June 20, 2013}}</ref> The merger was completed in July 2008. The new company was called [[Activision Blizzard]] and was headed by Kotick, while Vivendi maintained a 52% share in the company.<ref name="forbes kotick" /><ref>{{cite press release |title=Vivendi and Activision to create Activision Blizzard – World's Largest, Most Profitable Pure-Play Video Game Publisher |publisher=Activision, [[Vivendi]] |date=December 2, 2007 |url=https://www.activisionblizzard.com/pressReleases/pr120207.php |archive-url=https://web.archive.org/web/20080409211320/http://www.activisionblizzard.com/pressReleases/pr120207.php |archive-date=April 9, 2008 |access-date=December 2, 2007}}</ref> The new company was estimated to be worth {{US$|18.9 billion}}, ahead of [[Electronic Arts]], which was valued at {{US$|14.1 billion}}.<ref>{{cite web |url=https://www.adweek.com/brand-marketing/activision-vivendi-shake-games-biz-96314/ |title=Activision-Vivendi to Shake Up Games Biz |first=Georg |last=Szalai |date=July 8, 2008 |work=AdWeek |access-date=February 12, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160304054037/http://www.adweek.com/news/advertising-branding/activision-vivendi-shake-games-biz-96314 |archive-date=March 4, 2016}}</ref> === Post-merger developments (2009–2022) === Activision Publishing remains a subsidiary of Activision Blizzard following the merger, and is responsible for developing, producing, and distributing games from its internal and subsidiary studios. Eric Hirshberg was announced as Activision Publishing's CEO in 2010.<ref name="pcgamer hirshberg" /> Activision Publishing established [[Sledgehammer Games]] in November 2009. Formed earlier in 2009 by [[Glen Schofield]] and [[Michael Condrey]], former [[Visceral Games]] leads that had worked on ''[[Dead Space]]'', Sledgehammer intended to develop a ''Call of Duty'' spin-off title fashioned after the gameplay in ''Dead Space''. However, in early 2010, [[Infinity Ward#2010 employee firings and departures|legal issues between Infinity Ward and Activision Blizzard]] led to several members of Infinity Ward leaving, and Activision assigned Sledgehammer to assist Infinity Ward in the next major ''Call of Duty'' title, ''[[Call of Duty: Modern Warfare 3|Modern Warfare 3]]''.<ref>{{cite news |last=Flemming |first=Ryan |title=Inside Sledgehammer Games and the Biggest Gamble You Never Knew About |url=https://www.digitaltrends.com/gaming/inside-sledgehammer-games-and-the-biggest-gamble-you-never-heard-of/ |access-date=March 2, 2013 |newspaper=Digital Trends |date=February 16, 2013 |archive-url=https://web.archive.org/web/20130221063229/http://www.digitaltrends.com/gaming/inside-sledgehammer-games-and-the-biggest-gamble-you-never-heard-of/ |archive-date=February 21, 2013 |url-status=live}}</ref> Since then, Sledgehammer, Infinity Ward, and Treyarch share development duties for the flagship series, with support from Raven and other studios as necessary. In February 2010, Activision Blizzard reported significant losses in revenue stemming from a slow down in ''Guitar Hero'' sales and from its more casual games. Subsequently, Activision Publishing shuttered Red Octane, [[Luxoflux]] and [[Underground Development]] as well as laid off about 25% of the staff at Neversoft.<ref name=latimes2010_02>{{cite web |url=https://www.latimes.com/archives/blogs/company-town-blog/story/2010-02-11/activision-lays-off-about-200-employees-shuts-down-santa-monica-studio-luxoflux |title=Activision lays off about 200 employees, shuts down Santa Monica studio Luxoflux |first=Ben |last=Fritz |date=February 11, 2010 |access-date=February 14, 2019 |work=[[Los Angeles Times]] |archive-url=https://web.archive.org/web/20190215050545/https://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/activision-lays-off-200-shuts-luxoflux.html |archive-date=February 15, 2019 |url-status=live}}</ref><ref name="kotaku.com">{{cite web |url=https://kotaku.com/activision-shutters-guitar-hero-creators-gh-van-halen-5470149 |title=Activision Shutters Guitar Hero Creators, GH: Van Halen Developers (Update) |first=Luke |last=Plunkett |date=February 12, 2010 |publisher=Kotaku |url-status=live |archive-url=https://web.archive.org/web/20100213081101/http://kotaku.com/5470149/activision-shutters-guitar-hero-creators-gh-van-halen-developers |archive-date=February 13, 2010}}</ref> Within the same year, Activision shuttered [[Budcat Creations]] in November 2010, and [[Bizarre Creations]] in February 2011.<ref>{{cite web |url=https://www.pcgamer.com/activision-shuts-down-bizarre-and-budcat-studios/ |title=Updated: Activision shutting down Bizarre and Budcat studios? |date=November 16, 2010 |access-date=February 15, 2019 |work=[[PC Gamer]] |archive-url=https://web.archive.org/web/20190214233411/https://www.pcgamer.com/activision-shuts-down-bizarre-and-budcat-studios/ |archive-date=February 14, 2019 |url-status=live}}</ref><ref name="bizzare close">{{cite web |author=Wesley Yin-Poole |url=https://www.eurogamer.net/articles/2011-02-18-bizarre-says-goodbye-with-farewell-video#cm-2156706 |title=Bizarre says goodbye with farewell video |publisher=Eurogamer.net |date=February 18, 2011 |access-date=May 15, 2011 |archive-url=https://web.archive.org/web/20180304232906/http://www.eurogamer.net/articles/2011-02-18-bizarre-says-goodbye-with-farewell-video#cm-2156706 |archive-date=March 4, 2018 |url-status=live}}</ref> Hirshberg left the CEO position in March 2018.<ref>{{cite web |url=https://venturebeat.com/2018/01/18/activision-publishing-ceo-eric-hirshberg-is-leaving-in-march-after-8-years/ |title=Activision Publishing CEO Eric Hirshberg is leaving in March |date=January 18, 2018 |website=venturebeat.com |access-date=September 7, 2018 |archive-url=https://web.archive.org/web/20180908015834/https://venturebeat.com/2018/01/18/activision-publishing-ceo-eric-hirshberg-is-leaving-in-march-after-8-years/ |archive-date=September 8, 2018 |url-status=live}}</ref> Into the 2020s, Activision put more focus on the ''Call of Duty'' franchise, including the release of the free-to-play ''[[Call of Duty: Warzone]]'' in 2020. By April 2021, the company had assigned all of its internal studios to work on some part of the ''Call of Duty'' franchise.<ref>{{cite web | url = https://kotaku.com/now-every-single-activision-studio-works-on-call-of-dut-1846798677 | title = Now Every Single Activision Studio Works On Call Of Duty | first = Zack | last = Zweizan | date = April 30, 2021 | accessdate = April 30, 2021 | work = [[Kotaku]] | archive-date = April 30, 2021 | archive-url = https://web.archive.org/web/20210430171257/https://kotaku.com/now-every-single-activision-studio-works-on-call-of-dut-1846798677 | url-status = live }}</ref> This includes a new studio, Activision Mobile, devoted to the ''[[Call of Duty Mobile]]'' title as reported in August 2021.<ref>{{cite web | url = https://venturebeat.com/2021/08/03/activision-blizzard-creates-new-mobile-studio-for-call-of-duty/ | title = Activision Blizzard creates new mobile studio for Call of Duty | first = Dean | last = Takahashi | date = August 3, 2021 | accessdate = August 3, 2021 | work = [[Venture Beat]] | archive-date = April 22, 2022 | archive-url = https://web.archive.org/web/20220422140150/https://venturebeat.com/2021/08/03/activision-blizzard-creates-new-mobile-studio-for-call-of-duty/ | url-status = live }}</ref><ref name="vgc act mobile">{{cite web | url = https://www.videogameschronicle.com/news/a-new-call-of-duty-game-is-in-development-at-activision-mobile/ | title = A new Call of Duty game is in development at Activision Mobile | first = Tom | last = Ivan | date = August 3, 2021 | accessdate = August 3, 2021 | work = [[Video Games Chronicle]] | archive-date = April 22, 2022 | archive-url = https://web.archive.org/web/20220422140149/https://www.videogameschronicle.com/news/a-new-call-of-duty-game-is-in-development-at-activision-mobile/ | url-status = live }}</ref> In 2021, while all their employees were [[Remote work|working remotely]] during the [[COVID-19 pandemic]], Activision and its parent Activision Blizzard vacated their longtime headquarters building in Santa Monica and ended their lease with [[Boston Properties]]. In September 2021, they subleased a much smaller office space in Santa Monica at the Pen Factory (a former [[Paper Mate]] factory) from [[Kite Pharma]], which had leased the space from Lincoln Property Company.<ref name="Cornfield">{{cite news |last1=Cornfield |first1=Greg |title=Activision Moves Publishing HQ to Pen Factory in Santa Monica: Sources |url=https://commercialobserver.com/2021/09/activision-blizzard-moves-publishing-hq-pen-factory-santa-monica-lincoln-property-company-gilead-office/ |access-date=March 4, 2023 |work=Commercial Observer |date=September 10, 2021 |archive-date=March 4, 2023 |archive-url=https://web.archive.org/web/20230304160746/https://commercialobserver.com/2021/09/activision-blizzard-moves-publishing-hq-pen-factory-santa-monica-lincoln-property-company-gilead-office/ |url-status=live }}</ref> === Purchase by Microsoft (2023–present) === With the [[Acquisition of Activision Blizzard by Microsoft|acquisition of Activision Blizzard]] by [[Microsoft]] in October 2023, Activision Blizzard as a whole, including the Activision Publishing subdivision, became a separate division under the [[Microsoft Gaming]] arm of Microsoft.<ref>{{cite web | url = https://www.standard.co.uk/culture/gaming/activision-blizzard-microsoft-takeover-facts-call-of-duty-b1059441.html | title = Who owns Activision Blizzard? Microsoft acquires Call of Duty maker in blockbuster deal | first1 = Alan | last1 = Martin | first2 = Vicky | last2 = Jessop | first3 = Saqib | last3 = Shah | date = October 13, 2023 | accessdate = December 29, 2023 | work = [[Evening Standard]] | archive-date = December 29, 2023 | archive-url = https://web.archive.org/web/20231229160206/https://www.standard.co.uk/culture/gaming/activision-blizzard-microsoft-takeover-facts-call-of-duty-b1059441.html | url-status = live }}</ref> {{Main|Microsoft and unions#United States}} On March 8, 2024, 600 Activision [[Quality assurance|QA]] workers in Texas, Minnesota and California unionized under the [[Communications Workers of America|Communication Workers of America]] (CWA), marking it as the largest union in the United States [[video game industry]].<ref>{{Cite web |last=Carpenter |first=Nicole |date=2024-03-08 |title=600 Activision QA workers unionize, Microsoft voluntarily recognizes |url=https://www.polygon.com/24093254/activision-qa-600-workers-union-microsoft |access-date=2024-03-09 |website=Polygon |language=en-US |archive-date=March 9, 2024 |archive-url=https://web.archive.org/web/20240309003530/https://www.polygon.com/24093254/activision-qa-600-workers-union-microsoft |url-status=live }}</ref> On May 16, 2024, Activision announced the establishment of [[Warsaw]]-based studio Elsewhere Entertainment, assembled for the development of a new narrative-based [[AAA (video game industry)|AAA]] IP not associated with other Activision series like ''Call of Duty''. The studio comprises various developers associated with other narrative-driven gaming franchises such as ''[[The Last of Us]]'', ''[[Uncharted]]'', ''[[The Witcher]]'' and ''[[Far Cry]]'' among others; at the time of announcement they were recruiting more staff to create a "[[State of the art|state-of-the-art]] and next-generation gaming experience", as well as a franchise with "an enduring legacy that goes far beyond games."<ref>{{Cite web |last=Bailey |first=Kat |date=2024-05-16 |title=Activision Opens New Studio Tasked With Creating Narrative-Based AAA Franchise |url=https://www.ign.com/articles/activision-opens-new-studio-tasked-with-creating-narrative-based-aaa-franchise |access-date=2024-05-16 |website=IGN |language=en |archive-date=May 16, 2024 |archive-url=https://web.archive.org/web/20240516161123/https://www.ign.com/articles/activision-opens-new-studio-tasked-with-creating-narrative-based-aaa-franchise |url-status=live }}</ref> In July 2024, the [[Screen Actors Guild-American Federation of Television and Radio Artists]] (SAG-AFTRA) actor labor union, which provides numerous video game voice actors, initiated a [[2024 SAG-AFTRA video game strike|labor strike]] against a number of video publishers, including Activision, over concerns about lack of [[Artificial intelligence|AI]] protections which concern not only video game actors, but also the use of AI to replicate an actor's voice, or create a digital replica of their likeness.<ref>{{cite news|url=https://www.sagaftra.org/videogamestrike|title=SAG-AFTRA Members Who Work on Video Games Go on Strike; A.I. Protections Remain the Sticking Point|publisher=SAG AFTRA|date=July 26, 2024|accessdate=July 26, 2024|archive-date=July 26, 2024|archive-url=https://web.archive.org/web/20240726011959/https://www.sagaftra.org/videogamestrike|url-status=live}}</ref><ref>{{cite news|url=https://www.reuters.com/world/us/hollywoods-videogame-performers-go-strike-over-ai-pay-concerns-2024-07-25/|title=Hollywood's videogame performers to strike over AI, pay concerns|first=Danielle|last=Broadway|publisher=Reuters|date=July 25, 2024|accessdate=July 26, 2024}}</ref>
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