Activision Publishing, Inc., based in Santa Monica, California, is a major American video game publisher and a business division of Activision Blizzard. It's one of the world's largest third-party video game publishers and was the leading U.S. publisher in 2016. Activision oversees numerous subsidiary studios, focusing on the development and distribution of video games.
Activision is removing Modern Warfare 2 and 3 from the Call of Duty HQ launcher, making them standalone games to reduce file size as they prepare for Black Ops 7.
In 1976, Warner Communications acquired Atari, Inc. from Nolan Bushnell to expedite the release of the Atari Video Computer System (Atari VCS or later the Atari 2600) by 1977.
In 1977, Atari began hiring programmers to develop games for the Atari Video Computer System, later known as Atari 2600.
In 1978, following Warner's acquisition, Ray Kassar was appointed CEO of Atari and focused on minimizing production costs for Warner.
In May 1979, Crane, Kaplan, Miller, and Whitehead, known as the "Gang of Four", met with Atari CEO Ray Kassar to request royalties and recognition on game boxes, similar to how record labels treated musicians. Kassar dismissed their demands, diminishing their roles.
On October 1, 1979, Activision, Inc. was founded in Sunnyvale, California, by former Atari game developers. The company aimed to develop games for the Atari 2600, becoming the first independent, third-party console video game developer.
In 1979, Crane, Kaplan, Miller, and Whitehead decided to leave Atari and establish their own independent game development company, a novel concept at the time. Jim Levy helped them secure around $1 million in capital from Sutter Hill Ventures.
In early 1979, Atari's marketing department distributed a memo listing the best-selling cartridges from the previous year to inspire new game ideas. Crane noted that his games had generated over $20 million for the company, while his salary was only $20,000.
In 1980, Activision released its first games, which were modest hits.
In 1980, Activision showcased their titles at the Consumer Electronics Show, receiving favorable press. Atari attempted to discredit Activision and threatened retailers carrying Activision titles.
In 1981, Activision released Kaboom!, its first game to sell over a million units.
In 1981, Imagic, one of the third-party development studios was formed after Activision's success.
By 1982, Atari's lawsuit against Activision, alleging theft of trade secrets, was settled. Activision agreed to pay royalties to Atari, legitimizing the third-party development model.
In 1982, Activision's Pitfall!, created by Crane, sold over four million copies and became a breakout title. Near the end of 1982, Kaplan left Activision to work on the Amiga personal computer.
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.
In 1983, Activision's success and the popularity of the Atari 2600 led to the emergence of many more third-party developers and home consoles. However, many new third-party developers lacked experience, contributing to the video game crash of 1983.
In 1983, the video game crash impacted Activision's income. Retailers sold unsold games at a mass discount, reducing Activision's income, even though there was still demand for their games.
Through 1983, Activision included instructions in their game manuals for players to send in photos of high scores to receive a patch in return.
In 1984, Activision's quarterly revenue dropped from $50 million to $6–7 million due to the video game crash. The company was forced to lay off staff, reducing its workforce from 400 to 95 employees.
In 1985, Miller and Whitehead left Activision due to the devaluation of their stock after the video game crash and went on to form Accolade.
In June 1986, Activision acquired the struggling text adventure pioneer Infocom through a corporate merger, spearheaded by Jim Levy. About six months after the "Infocom Wedding", Activision's board decided to replace Levy with Bruce Davis.
In 1988, Activision changed its corporate name to Mediagenic to reflect its involvement in software beyond video games, including business applications.
In 1989, Activision published the first-person perspective MechWarrior, based on FASA's pen-and-paper game BattleTech.
In 1989, after several years of losses, Activision closed the Infocom studios and offered relocation to Activision's Silicon Valley headquarters to only 11 of the 26 employees.
In May 1990, Mediagenic faced a $6 million penalty after losing patent infringement lawsuits filed against it by Magnavox over the similarities of Activition's games to Magnavox's patents.
Around early 1990, Mediagenic worked on the early version of a football game that was the basis for Joe Montana Football. Sega of America contracted Mediagenic to develop this into the branded version, but internal troubles left the game unfinished, forcing Sega to turn to Electronic Arts for completion.
Around 1991, Bobby Kotick and a group of investors purchased the debt-ridden Mediagenic for approximately US$500,000. The company was formerly known as Activision.
In 1991, Bobby Kotick and additional investors bought Mediagenic in a hostile takeover for approximately $500,000.
In 1991, Mediagenic reported a loss of $26.8 million on only $28.8 million of revenue and had over $60 million in debt.
By the end of 1992, Bobby Kotick renamed Mediagenic to the original Activision name.
In October 1993, the new Activision went public, raising about $40 million, and was listed on NASDAQ under its new ticker symbol ATVI.
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.
In 1995, MechWarrior 2 was released after two years of delays and internal struggles, prompting FASA not to renew their licensing deal with Activision.
In 1997, Activision procured the license to the pen-and-paper-based war game Heavy Gear.
Reaching this goal in 1995, Kotick then set Activision on his second promise to investors, to develop high-demand games and make the company profitable by 1997.
With several of its own successfully developed games helping to turn a profit, in 1997 Bobby 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.
1998 saw the release of Battlezone, which used the Mechwarrior 2 engine.
On June 16, 2000, Activision reorganized as a holding company, Activision Holdings, to manage Activision and its subsidiaries more effectively.
Between 1997 and 2008, Activision made 25 acquisitions, several prior to 2001.
In 2003, the company was awarded the Game Developers Choice "First Penguin" award in recognition of its place as the first third-party developer.
Around 2006, Bobby Kotick contacted Jean-Bernard Lévy, the new CEO of Vivendi, a French media conglomerate, to gain access to World of Warcraft game.
Around 2006, Bobby Kotick contacted Jean-Bernard Lévy, the new CEO of Vivendi, about a possible merger.
In December 2007, Activision's board signed on to the merger with Vivendi Games.
During 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.
In July 2008, Activision and Vivendi Games completed their merger, forming Activision Blizzard. The new company was headed by Bobby Kotick.
Between 1997 and 2008, Activision made 25 acquisitions, several prior to 2001.
In 2008, Activision merged with Vivendi Games, parent company of Blizzard Entertainment, to form Activision Blizzard. Bobby Kotick became the CEO, and Activision continued to manage third-party studios and publish games except for those by Blizzard.
In November 2009, Activision Publishing established Sledgehammer Games, formed earlier in 2009 by Glen Schofield and Michael Condrey.
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.
Activision shuttered Budcat Creations in November 2010.
In 2010, Eric Hirshberg was announced as Activision Publishing's CEO.
In early 2010, 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, Modern Warfare 3.
Activision shuttered Bizarre Creations in February 2011.
In 2016, Activision was the top United States video game publisher.
In March 2018, Eric Hirshberg left the CEO position.
In 2020, Activision put more focus on the Call of Duty franchise, including the release of the free-to-play Call of Duty: Warzone.
By April 2021, Activision had assigned all of its internal studios to work on some part of the Call of Duty franchise.
In August 2021, Activision created a new studio, Activision Mobile, devoted to the Call of Duty Mobile title.
In September 2021, Activision and its parent Activision Blizzard subleased a much smaller office space in Santa Monica at the Pen Factory, a former Paper Mate factory.
In October 2023, Microsoft acquired Activision Blizzard but maintained that the company would operate as a separate business within the Microsoft Gaming division, with Activision continuing to publish games developed by its studios.
In October 2023, with the acquisition of Activision Blizzard by Microsoft, Activision Blizzard as a whole, including the Activision Publishing subdivision, became a separate division under the Microsoft Gaming arm of Microsoft.
On March 8, 2024, 600 Activision QA workers in Texas, Minnesota and California unionized under the Communication Workers of America (CWA), marking it as the largest union in the United States video game industry.
On May 16, 2024, Activision announced the establishment of Warsaw-based studio Elsewhere Entertainment, assembled for the development of a new narrative-based AAA IP not associated with other Activision series like Call of Duty.
In July 2024, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) actor labor union initiated a labor strike against a number of video publishers, including Activision, over concerns about lack of 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.
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