Editing Activision (section)

=== 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>