Activision Publishing, Inc., based in Santa Monica, California, is a leading American video game publisher. A subsidiary of Activision Blizzard, it comprises several studios and ranks among the world's largest third-party publishers in the industry. In 2016, Activision held the top spot in the United States.
1976: Warner Communications Acquires Atari
Warner Communications acquired Atari, Inc. in 1976 to expedite the launch of the Atari Video Computer System (VCS), later known as the Atari 2600.
1977: Atari VCS Launch
The Atari VCS was released to the market in 1977.
1978: Ray Kassar Appointed Atari CEO
Following Warner's acquisition, Ray Kassar was appointed CEO of Atari in 1978, prioritizing cost-effective game production.
May 1979: The "Gang of Four" Confronts Atari Management
In May 1979, four prominent Atari programmers, known as the "Gang of Four" (David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead), confronted CEO Ray Kassar to demand better recognition and royalties for their contributions. However, their request was met with resistance.
October 1, 1979: Activision is Founded
On October 1, 1979, Activision, Inc. was established in Sunnyvale, California, by a group of former Atari game developers seeking greater creative control and recognition for their work.
1979: Activision Begins Operations
Activision commenced operations in the latter half of 1979, working from David Crane's garage. Each programmer focused on developing their own game, aiming for a mid-1980 release.
1979: Atari's Internal Memo and Developer Discontent
In early 1979, Atari's marketing department circulated an internal memo highlighting the previous year's best-selling cartridges. This memo brought to light the disparity between the revenue generated by programmers' games and their compensation, contributing to growing discontent among developers.
1979: Formation of a Third-Party Developer
The "Gang of Four," facing resistance from Atari, decided to establish their own independent game development company in 1979, a novel concept at the time. They secured funding and legal counsel to pursue their vision.
1980: Activision Showcases Games at CES
Activision participated in the Consumer Electronics Show (CES) in mid-1980, generating positive press coverage for their upcoming games.
1980: Atari's Lawsuit Against Activision
Concerned by Activision's emergence, Atari filed a lawsuit in 1980 to halt the company's operations, alleging theft of trade secrets and breach of non-disclosure agreements.
1980: Early Success and Growth
Activision experienced initial success with its early games released in 1980.
1981: Third-Party Development Studios Emerge Following Activision's Success
Activision's early success in 1981 inspired the emergence of numerous third-party development studios, some of which, according to David Crane, were poorly managed and contributed to the industry's instability leading to the video game crash.
1981: Kaboom! Achieves Million-Unit Sales
In 1981, Activision released Kaboom!, which became their first game to sell over a million copies, marking a significant commercial milestone.
1982: Pitfall! Becomes a Breakout Hit
Activision achieved a major breakthrough in 1982 with the release of Pitfall! by David Crane. The game sold over four million copies, establishing it as a classic and further solidifying Activision's position in the industry.
1982: Resolution of Atari-Activision Lawsuit
The lawsuit between Atari and Activision was settled in 1982, with Activision agreeing to pay royalties to Atari while solidifying the legitimacy of the third-party development model.
June 1983: Activision Goes Public
In June 1983, Activision went public on NASDAQ under the stock ticker AVSN. At this time, the company had estimated sales of $157 million and revenues of $60 million.
1983: Activision's Developer Recognition Policy
Throughout its early years, until 1983, Activision distinguished itself by prominently crediting developers in game manuals, acknowledging their contributions, and even offering patches to players who sent in high scores.
1983: Activision Impacted by the Video Game Crash
Despite surviving the crash, Activision felt the effects in the years following 1983. The influx of cheap games from failed developers hurt their revenue, forcing them to lay off staff and diversify onto home computers.
1983: Video Game Crash and Diversification
The video game crash of 1983, partly fueled by market saturation, significantly impacted Activision's console game sales. In response, the company diversified into home computer games and acquired Infocom.
1983: Activision's Success Attracts Competition and Contributes to the Video Game Crash of 1983
Activision's success in the early 1980s, along with the popularity of the Atari 2600, led to a surge in third-party developers for home consoles. However, many of these new developers lacked experience and flooded the market with low-quality games, contributing to the video game crash of 1983.
1984: Activision's Revenue Plummets, Leading to Layoffs and a Shift in Focus
By the end of 1984, Activision's quarterly revenue had plummeted from $50 million to around $6-7 million due to the aftereffects of the video game crash. This forced the company to lay off a significant portion of its workforce, shrinking from 400 employees to 95, and shift its focus towards developing games for home computers.
1985: Talent Drain Continues at Activision
The video game crash continued to affect Activision in 1985, as the company experienced a drain of talent, with key figures like Miller and Whitehead leaving due to stock devaluation.
June 1986: Activision Acquires Infocom
In June 1986, Activision, under the leadership of CEO Jim Levy, acquired the struggling text adventure game developer Infocom. This move was driven by Levy's admiration for Infocom's work and his belief that the company could be revitalized.
1988: Activision Expands Beyond Video Games, Becomes Mediagenic
In 1988, Activision expanded its business beyond video games into software, including business applications. To reflect this broader focus, the company changed its name to Mediagenic.
1989: Release of MechWarrior
In 1989, Activision published MechWarrior, a first-person perspective game based on the popular pen-and-paper game BattleTech.
1989: Mediagenic Closes Infocom Studios
In 1989, after several years of financial struggles, Mediagenic decided to shut down the Infocom studios. Only 11 out of the 26 employees at Infocom were offered a chance to relocate to Mediagenic's headquarters in Silicon Valley, and only five accepted.
1990: Mediagenic's Internal Troubles Affect Joe Montana Football Development
Around 1990, Mediagenic was working on an early version of a football game that would later become Joe Montana Football. Sega of America, unaware of Mediagenic's internal issues, paid them to develop the game. However, the game was unfinished due to these problems, forcing Sega to take the incomplete version to Electronic Arts to complete.
1991: Acquisition and Restructuring Under Bobby Kotick
Around 1991, Activision, facing financial difficulties, was acquired for approximately US$500,000 by Bobby Kotick and a group of investors. Kotick implemented a significant restructuring plan, including staff layoffs, relocation to Los Angeles, and a return to the Activision name.
1991: Mediagenic Suffers Significant Losses, Loses Key Contracts
In 1991, Mediagenic reported a significant loss of $26.8 million on revenue of $28.8 million and had accumulated over $60 million in debt. This led to the termination of their contract with Cyan, who went on to create the successful game Myst with Broderbund.
1991: Bobby Kotick Acquires Mediagenic
Seeing potential in the struggling Mediagenic and the value of the Activision brand, Bobby Kotick and a group of investors bought the company for approximately $500,000 in 1991. Kotick's aim was to revitalize the Activision name.
1992: Kotick Restructures Mediagenic and Renames it Activision
After acquiring Mediagenic, Kotick initiated a significant restructuring, laying off most employees, renegotiating debts, and focusing on re-releasing classic titles. By the end of 1992, he renamed the company back to Activision.
October 1993: Activision Goes Public (Again)
After successfully restructuring Mediagenic and fulfilling its bankruptcy plan, Bobby Kotick renamed the company back to Activision. In October 1993, the revamped Activision went public, raising about $40 million, and was listed on NASDAQ under the ticker symbol ATVI.
1995: Release of MechWarrior 2 and Subsequent Sequels
After two years of delays and internal struggles, MechWarrior 2 was released in 1995. Due to the difficulties, FASA opted not to renew their licensing deal with Activision. In response, Activision released further titles bearing the MechWarrior 2 name, which did not breach the existing licensing agreement. These titles included NetMech, MechWarrior 2: Ghost Bear's Legacy, and MechWarrior 2: Mercenaries. The MechWarrior 2 series achieved significant commercial success, generating over US$$70 million in sales.
1995: Activision Achieves Revenue Growth, Aims for Profitability
By 1995, Activision, under Kotick's leadership, had achieved four years of 50% revenue growth while breaking even, fulfilling a promise he made to investors. With this goal achieved, Kotick set his sights on making the company profitable by 1997 by focusing on high-demand games.
1997: Activision Targets Profitability
After years of restructuring and refocusing on game development, Activision, under Kotick's leadership, set its sights on achieving profitability by 1997.
1997: Activision Acquires Heavy Gear License and Releases Critically Acclaimed Game
In 1997, Activision obtained the license for Heavy Gear, another war game based on a pen-and-paper format. The video game adaptation was well received, earning an average rating of 81.46% on GameRankings. GameSpot hailed it as the top game in its genre at the time.
1997: Activision Embarks on Acquisition Spree
With the success of its developed games driving profitability, Activision, under Kotick's leadership, began pursuing acquisitions of video game development studios. Market research guided their focus on specific content areas. It's estimated that between 1997 and 2008, Activision made 25 acquisitions, with several undisclosed amounts. Notably, acquisitions made before 2001 during the Dot-com bubble allowed the company to secure studios at lower valuations.
1998: Activision Utilizes Mechwarrior 2 Engine for Other Games
The Mechwarrior 2 engine was repurposed for other Activision games, including Interstate '76, released in 1997, and Battlezone, released in 1998.
June 16, 2000: Activision Restructures as a Holding Company
On June 16, 2000, Activision underwent a significant restructuring, becoming Activision Holdings, a holding company designed for more effective management of its subsidiaries, including Activision. Consequently, "Activision, Inc." was renamed "Activision Publishing, Inc.", while Activision Holdings assumed the former "Activision, Inc." name. This strategic move positioned Activision Publishing as a wholly owned subsidiary of the publicly traded Activision, with all outstanding capital stock shares converted.
2001: Activision Capitalizes on Dot-com Bubble for Acquisitions
Activision took advantage of the Dot-com bubble to acquire studios at lower valuations prior to 2001, contributing to its growth strategy.
2003: Activision Founders Receive "First Penguin" Award
In 2003, the founders of Activision were honored with the Game Developers Choice "First Penguin" award, recognizing their pioneering role as the first successful third-party developer in the video game industry.
2006: Activision and Vivendi Consider Merger, Kotick Hesitates
Lévy, recognizing Kotick's interest in World of Warcraft, proposed a merger between the companies. However, he stipulated that Vivendi would hold the majority stake, compelling Kotick to relinquish control. This demand caused Kotick to hesitate about the deal.
2006: Activision Explores Merger with Vivendi for World of Warcraft
Recognizing the potential of the massively multiplayer online market, Kotick sought to secure a title in this genre to capitalize on recurring revenue streams from subscriptions and microtransactions. Around 2006, he initiated contact with Jean-Bernard Lévy, the CEO of Vivendi, a French media conglomerate. Vivendi Games, their struggling gaming division, possessed a key asset: Blizzard Entertainment, renowned for its highly successful World of Warcraft, generating US$$1.1 billion annually in subscription fees. Additionally, Vivendi Games owned Sierra Entertainment.
December 2007: Activision's Board Approves Merger with Vivendi
After careful consideration, Activision's board approved the merger agreement with Vivendi in December 2007.
2007: Activision Acquires RedOctane, Publisher of Guitar Hero
As some of Activision's successful properties, such as Tony Hawk's, began to decline in 2006–2007, the company acquired RedOctane, the publisher of the increasingly popular Guitar Hero franchise.
July 2008: Activision Blizzard Merger Creates Gaming Powerhouse
The highly anticipated merger between Activision and Vivendi Games reached its conclusion in July 2008. The newly formed entity, Activision Blizzard, was valued at an impressive US$$18.9 billion, surpassing Electronic Arts, which held a valuation of US$$14.1 billion at the time. This strategic move solidified Activision Blizzard's position as a dominant force in the gaming industry, with Kotick at the helm and Vivendi retaining a 52% ownership stake.
2008: Activision's Acquisition Spree Continues
Activision continued its acquisition strategy, acquiring approximately 25 video game development studios between 1997 and 2008.
2008: Formation of Activision Blizzard
In 2008, Activision's holding company merged with Vivendi Games, the parent company of Blizzard Entertainment, leading to the creation of Activision Blizzard, with Bobby Kotick as CEO. This structure positioned Activision to manage third-party studios and oversee the publishing of all games except those developed by Blizzard.
November 2009: Activision Publishing Establishes Sledgehammer Games
Activision Publishing founded Sledgehammer Games in November 2009. Founded earlier that year by Glen Schofield and Michael Condrey, former leads at Visceral Games known for their work on Dead Space, Sledgehammer initially aimed to develop a Call of Duty spin-off inspired by Dead Space's gameplay.
February 2010: Activision Publishing Reports Losses, Shuts Down Studios, and Lays Off Staff
In February 2010, Activision Blizzard announced significant revenue losses attributed to declining Guitar Hero sales and its casual games segment. In response, Activision Publishing took drastic measures, shutting down Red Octane, Luxoflux, and Underground Development while laying off approximately 25% of Neversoft's workforce.
November 2010: Activision Publishing Closes Budcat Creations
Continuing its restructuring efforts, Activision Publishing closed Budcat Creations in November 2010.
2010: Activision Publishing Appoints Eric Hirshberg as CEO
Following the merger, Activision Publishing continued to operate as a subsidiary of Activision Blizzard, responsible for game development, production, and distribution from its internal studios and subsidiaries. In 2010, Eric Hirshberg was appointed as the CEO of Activision Publishing.
2010: Sledgehammer Games Shifted to Assist with Modern Warfare 3 Development
In a turn of events in early 2010, legal disputes arose between Infinity Ward and Activision Blizzard, leading to the departure of several Infinity Ward members. As a result, Activision tasked Sledgehammer Games with assisting Infinity Ward in developing the next major installment in the Call of Duty franchise, Modern Warfare 3. From that point forward, Sledgehammer, Infinity Ward, and Treyarch shared development responsibilities for the flagship series, receiving support from Raven Software and other studios as needed.
February 2011: Activision Publishing Shuts Down Bizarre Creations
Activision Publishing closed Bizarre Creations in February 2011, marking further consolidation within the company.
2016: Activision Tops US Publisher Charts
In 2016, Activision secured its position as the leading video game publisher in the United States.
March 2018: Eric Hirshberg Steps Down as CEO of Activision Publishing
After leading Activision Publishing for eight years, Eric Hirshberg resigned from his position as CEO in March 2018.
2020: Activision Releases Call of Duty: Warzone
In the 2020s, Activision increased its focus on the Call of Duty franchise, releasing the free-to-play battle royale, Call of Duty: Warzone, in 2020.
April 2021: Activision Focuses Entirely on Call of Duty Franchise
By April 2021, Activision had directed all its internal studios to contribute to the Call of Duty franchise, demonstrating its significance to the company.
August 2021: Activision Mobile Established for Call of Duty Mobile
In August 2021, Activision announced the formation of Activision Mobile, a new studio dedicated to the development of Call of Duty Mobile, further solidifying their commitment to mobile gaming within the franchise.
September 2021: Activision Vacates Santa Monica Headquarters and Downsizes Office Space
During the COVID-19 pandemic in 2021, with employees working remotely, Activision and its parent company, Activision Blizzard, decided to vacate their long-standing headquarters in Santa Monica, California, ending their lease with Boston Properties. In September 2021, they subleased a smaller office space in Santa Monica at the Pen Factory from Kite Pharma, which had leased the space from Lincoln Property Company. This move reflected the changing work landscape and a shift towards remote work arrangements.
October 2023: Microsoft Acquires Activision Blizzard
In October 2023, Microsoft finalized the acquisition of Activision Blizzard, with the understanding that Activision would continue to operate as a separate entity within the larger Microsoft Gaming division, retaining its role as a game publisher.
October 2023: Microsoft Acquires Activision Blizzard, Establishing it as a Separate Division
In a landmark deal completed in October 2023, Microsoft acquired Activision Blizzard, including the Activision Publishing subdivision. This acquisition led to the establishment of Activision Blizzard as a separate division within Microsoft Gaming, a testament to its value and significance within the gaming industry.
March 8, 2024: Activision QA Workers Unionize Under CWA
On March 8, 2024, a significant development occurred within Activision as 600 quality assurance (QA) workers across Texas, Minnesota, and California successfully unionized under the Communication Workers of America (CWA). This milestone marked the formation of the largest video game industry union in the United States, reflecting a growing movement towards labor organization within the gaming sector.
May 16, 2024: Activision Establishes Elsewhere Entertainment for New AAA IP
On May 16, 2024, Activision announced the formation of Elsewhere Entertainment, a new studio based in Warsaw, Poland. The studio's primary focus is developing a new narrative-driven AAA intellectual property (IP) separate from existing Activision franchises like Call of Duty. Notably, Elsewhere Entertainment comprises experienced developers who have contributed to acclaimed narrative-driven gaming franchises such as The Last of Us, Uncharted, The Witcher, and Far Cry. At the time of the announcement, the studio was actively recruiting additional staff to realize their ambitious goal of creating a "state-of-the-art and next-generation gaming experience" and establishing a franchise with "an enduring legacy that goes far beyond games."