History of Activision in Timeline

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Activision

Activision Publishing, Inc., based in Santa Monica, California, is a major American video game publisher and the publishing arm of Activision Blizzard. Recognized as one of the world's largest third-party video game publishers, Activision held the top spot as the leading U.S. publisher in 2016. It oversees numerous subsidiary studios responsible for developing and releasing popular video game titles.

1976: Warner Communications Buys Atari, Inc.

In 1976, Warner Communications bought Atari, Inc. from Nolan Bushnell to accelerate the Atari Video Computer System (Atari VCS or later the Atari 2600) to market.

1977: Atari Hires Programmers

In 1977, Atari began hiring programmers to create games for the Atari Video Computer System. Warner's management style led to conflicts with staff.

1978: Ray Kassar Named Atari CEO

In 1978, following Warner's acquisition, Ray Kassar was named CEO of Atari. His focus was on minimizing production costs for Warner.

May 1979: The Gang of Four's Meeting with Kassar

In May 1979, Crane, Kaplan, Miller, and Whitehead (known as the "Gang of Four") met with Atari's CEO, Ray Kassar, to demand royalties and recognition, similar to how record labels treated musicians. Kassar dismissed their demands.

October 1, 1979: Founding of Activision

On October 1, 1979, Activision, Inc. was founded in Sunnyvale, California, by former Atari game developers who were dissatisfied with Atari's treatment of its developers. The aim was to develop their own games for the Atari 2600.

1979: Decision to Form an Independent Game Development Company

In 1979, Crane, Kaplan, Miller, and Whitehead decided to leave Atari and create their own independent game development company. They sought guidance from an attorney and Jim Levy to secure capital, eventually obtaining about $1 million from Sutter Hill Ventures.

1979: Programmer Dissatisfaction at Atari

In early 1979, Atari's marketing department circulated a memo listing the best-selling cartridges from the previous year to help guide game ideas. Programmers like Crane became vocal about the lack of recognition and fair compensation despite generating substantial revenue for the company.

1979: Activision Begins Development

In the latter half of 1979, Activision started working out of Crane's garage, with each of the four programmers developing their own game.

1980: Modest Game Hits

In 1980, Activision had some modest hits, but the company's first successful games were yet to come.

1980: Activision Showcases Titles at Consumer Electronics Show

In 1980, Activision obtained space at the mid-year Consumer Electronics Show to showcase their titles. Atari attempted to tarnish Activision's reputation and threatened retailers.

1980: Planned Game Releases

In 1980, Activision planned the release of Dragster, Fishing Derby, Checkers, and Boxing, each programmer developing their own game.

1981: Closure of Imagic

In 1981 Imagic was founded after Activision's success. In 1986, Crane was concerned with how Davis managed the closure of Imagic, one of the third-party development studios formed after Activision's success.

1981: Release of Kaboom!

In 1981, Activision released Kaboom!, which became the company's first game to sell over a million units.

1982: Lawsuit Settlement with Atari

By 1982, Atari's lawsuit against Activision, claiming trade secret theft and violation of non-disclosure agreements, was settled. Activision agreed to pay royalties to Atari, legitimizing the third-party development model.

1982: Release of Pitfall!

In 1982, Activision's breakout title, Pitfall!, created by Crane, was released, selling more than four million copies.

June 1983: Initial Public Offering

In June 1983, Activision completed its initial public offering on NASDAQ under the stock ticker AVSN, with estimated sales of $157 million and revenues of $60 million, and around 60 employees at this point.

1983: Rise of Third-Party Developers

In 1983, the success of Activision and the Atari 2600 led to the emergence of many more home consoles and third-party developers, contributing to the video game crash of 1983.

1983: Impact of Video Game Crash

In 1983, the video game crash began impacting Activision, leading to reduced income due to discounted titles and a drop in quarterly revenue from $50 million to $6–7 million.

1983: Video Game Crash of 1983

In 1983, the video game crash occurred, influenced by numerous new companies attempting to replicate Activision's success without the necessary experience, which hurt Activision's position in console games. As a result, Activision was forced to diversify into games for home computers.

1983: High Score Patches

Through 1983, Activision's instruction manuals included instructions for sending the company a photograph of a player's high scores to receive a patch in return.

1984: Staff Layoffs and Diversification

By the end of 1984, Activision was forced to lay off staff, reducing the number of employees from about 400 to 95, and decided to diversify into home computer games to avoid going out of business.

1985: Departure of Miller and Whitehead

In 1985, Miller and Whitehead left Activision due to the devaluation of their stock and went on to form Accolade.

June 1986: Acquisition of Infocom

In June 1986, Activision acquired the struggling text adventure pioneer Infocom through a corporate merger, spearheaded by Jim Levy.

1988: Name Change to Mediagenic

In 1988, Activision began involvement in software besides video games, such as business applications, leading to a corporate name change to Mediagenic to better represent all of its activities.

1989: Closure of Infocom Studios

In 1989, after several years of losses, Activision closed down the Infocom studios, extending relocation offers to only 11 of the 26 employees.

1990: Work on Joe Montana Football

Around early 1990, 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 secured the rights to Joe Montana's name, but internal troubles within Mediagenic led to Electronic Arts completing the game.

1991: Acquisition by Kotick and Investors

Around 1991, Mediagenic, formerly Activision, was bought for approximately US$500,000 by Bobby Kotick and a small group of investors, after the company had fallen into debt.

2008: Merger with Vivendi Games

In 2008, Activision's holding company merged with Vivendi Games, the parent company of Blizzard Entertainment, forming Activision Blizzard, with Bobby Kotick as CEO.

2016: Top United States Publisher

In 2016, Activision was the top video game publisher in the United States, marking a significant milestone in the company's history.

October 2023: Activision Blizzard acquired by Microsoft

In October 2023, Microsoft acquired Activision Blizzard, making Activision Publishing a division under Microsoft Gaming.

October 2023: Acquisition by Microsoft

In October 2023, Microsoft acquired Activision Blizzard, the parent company of Activision, while maintaining that Activision would continue to operate as a separate business within the Microsoft Gaming division.

March 8, 2024: Activision QA workers unionize

On March 8, 2024, 600 Activision QA workers across Texas, Minnesota, and California unionized under the Communication Workers of America (CWA), forming the largest union in the U.S. video game industry.

May 16, 2024: Activision announces new studio, Elsewhere Entertainment

On May 16, 2024, Activision announced the establishment of Elsewhere Entertainment, a Warsaw-based studio to develop a new narrative-based AAA IP, with developers from The Last of Us, Uncharted, The Witcher and Far Cry, among others.

July 2024: SAG-AFTRA initiates labor strike against Activision

In July 2024, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) initiated a labor strike against Activision and other video game publishers over concerns about AI protections for voice actors and digital replicas.