Microsoft maintains that its acquisition of Activision won’t reduce gamers’ options by locking them into its ecosystem, contrary to opposition from regulators worldwide and the Federal Trade Commission (FTC).
Kotick believes his company has an exciting future ahead of it; yet, he acknowledges the numerous controversies surrounding its operations.
The Company
In 1979, Activision opened its first independent third-party console video game developer shop in northern California.
In the late 1990s and early 2000s, Interplay earned critical acclaim with PC offerings such as Interstate ’76 – an elegant 3D vehicle combat game featuring vibrant colours that was an early precursor of Grand Theft Auto from Rockstar Games.
Activision also acquired several studios and popular franchises during this period, such as Crash Bandicoot and Spyro the Dragon platform gaming series as well as Guitar Hero rhythm-based gaming phenomenon.
But Microsoft’s acquisition of Infocom proved an error of judgment. After purchasing it in 2008, they were forced to offer compensation packages worth billions of pounds to Infocom shareholders in order to satisfy Britain’s Competition and Markets Authority, who opposed the deal.
The Early Years
Company formed around the launch of Atari 2600 console. They became one of the early third-party developers and an important force in early home gaming market.
By 1982, Activision Ban Appeal titles such as space combat game Chopper Command and scrolling shooter River Raid had significantly eclipsed Atari’s outdated hardware. David Crane’s groundbreaking platforming adventure Pitfall! was another testament to this trend.
Mediagenic had become an impressive success by the end of the decade and began recruiting top development talent from Santa Monica. A key acquisition was Infocom – creators of legendary Zork text adventure series; also distributed id Software’s hard-nosed mech simulator Mechwarrior 2. Both titles proved popular critically and commercially but Atari’s laid back work culture clashed with Warner’s more business-minded approach, creating internal tensions within Mediagenic that eventually resulted in its closure.
The Mid-1980s
As Activision had become one of the industry’s leaders by the time of the market crash in the mid-1980s, their dominance in gaming became clear: their games like Chopper Command and River Raid provided thrilling scrolling action while Bob Whitehead’s 1982 classic Pitfall! gave rise to an entirely new genre.
This company made waves with its acquisition of Infocom in 1986, yet quickly found itself struggling as industry revenues collapsed and new upstart competitors flooded store shelves with low-quality titles.
After several years of financial struggles, Activision rallied back by producing innovative classics on PC such as Interstate ’76 and Battlezone. Furthermore, they collaborated with id Software on Quake II which established them as powerhouses in PC gaming world.
The 1990s
Activision continued its growth and success through the 1990s, hiring new designers and producing popular PC games like Interstate 76 – an innovative tank combat game with retro aesthetics which anticipated Grand Theft Auto series titles.
In 1990, Bobby Kotick purchased a significant stake in Mediagenic (then known as Activision) and took control of it. He cut staff, relocated the headquarters from Boston to Los Angeles and reverted back to using its original name – Activision.
Activision began releasing games from popular franchises like Call of Duty and Guitar Hero on an annual basis, prompting criticism by developers who felt forced to create similar titles each year and antitrust regulators.
The 2000s
David: Activision experienced steady expansion throughout the 2000s. World of Warcraft continued its reign as the best-selling MMORPG globally while Crash Bandicoot and Spyro the Dragon continued to be immensely popular platform games.
At a cultural level, rock music experienced a revival led by Limp Bizkit and Korn, pushing grunge style music more pop-oriented territory. Additionally, New York post-punk bands like The Strokes and Interpol began to gain prominence.
Guitar Hero quickly rose to become a pop culture phenomenon and was the best-selling new intellectual property launch ever, when combined with interactive toy and accessory pack sales. Meanwhile, Disney’s Mickey Mouse franchise continues to generate significant revenue and merchandise opportunities for them; and they acquired mobile game developer King Digital Entertainment for $5.9 billion so as to enter lucrative smartphone title market.