2008 was dominated by shake-ups that involved game announcements, disasters and controversies within the gaming media as well. As with the closure of several studios and the departure of many key developers (such as Itagaki from Tecmo), another trend began to grip the gaming industry: Mergers. And not just that of an EA or Microsoft acquiring a sumptuous looking third party but partnerships between Goliaths themselves. One such merger, which now accounts for the most successful franchises in gaming, was that of Activision and Blizzard. Warcraft, Diablo and Starcraft teaming with Call of Duty and Guitar Hero. Need we say more?
The merger was actually announced on December 2nd 2007. However, two conditions were needed to be fulfilled: First, Activision stockholders had to approve of the merger. Second, the European Commission had to ascertain the merger did not represent a monopoly (meaning the two companies would be sole owners of the only good games in the industry). After green-lighting the deal, Activision subsequently announced the deal closed on July 9th 2008. Activision CEO, Robert Kotick, became the company’s new President and CEO. CEO of Vivendi, of which Blizzard Entertainment is a part, Bruce Hack, serves as the company’s Vice-Chairman and Chief Corporate Officer. Despite the merger, Activision and Blizzard Entertainment remain fully autonomous. Meaning, neither can tell the other how to run their games. Who says we all can’t get along? Though Vivendi is a wholly owned subsidiary, it has an estimated 52% stake in the alliance.
The total transaction worth came to $18.9 billion; Activision – Blizzard’s revenue thus far has been $2.898 billion, thanks in part to back-to-back blockbusters like Call of Duty: World at War and the World of Warcraft expansion, Wrath of the Lich King. At present, the company is the 3rd largest third party developer in the world – completing the goal of being the “most profitable pure-play video game publisher” in six months flat.
Being on the upswing of the developer gains, Activision-Blizzard went ahead and announced upcoming sequels, namely Call of Duty: Modern Warfare 2 and about triple the number of Guitar Hero titles by 2010. That’s not counting Diablo 3, Starcraft 2 and subsequent expansions for both. That’s a whole lot of gaming booty at a time when most big publishers are still unsure of their next big exclusive.
Sadly, due to the merger, the Sierra Entertainment label finally folded. Activision-Blizzard stated that if a Sierra product skimps on their requirements, it “won’t likely be retained”. Thankfully, Crash Bandicoot, Spyro the Dragon and Prototype passed the test and will be published by Activision in the coming months.
So, there you have it, and boy is it a lot. We look forward to seeing exactly what the new king of the third-parties has in store for us in the coming years. Meanwhile, look forward to our third most defining event of 2008, tomorrow on Game Over 2K8.
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