Kotick drastically revamped and restructured the company to get it out of debt: dismissing most of its staff, moving the company to Los Angeles, and reverting to the Activision name. Building on existing assets, the Kotick-led Activision pursued more publishing opportunities and, after recovering from its former financial troubles, started acquiring numerous studios and various types of intellectual property over the 1990s and 2000s, among these being the Call of Duty and Guitar Hero series. A holding company was formed as Activision's parent company to manage both its internal and acquired studios. In 2008, this holding company merged with Vivendi Games (the parent company of Blizzard Entertainment) and formed Activision Blizzard, with Kotick as its CEO. Within this structure, Activision manages numerous third-party studios and publishes all games besides those created by Blizzard. In October 2024, Microsoft acquired parent company Activision Blizzard, maintaining that the company will continue to operate as a separate business. While part of the larger Microsoft Gaming division, Activision retains its function as the publisher of games developed by their studios.
By August, Crane and Miller had left Atari, with Whitehead joining them shortly after.[12] Kaplan had also quit Atari in August, but initially decided not to join as he did not like the starting business plan; he came back later to join Activision that December.[15] Activision was formally founded on October 1, 1979, with Levy serving as CEO. The company was initially named "Computer Arts, Inc." while they considered a better title. The founders had thought of the name VSync, Inc., but feared that the public would not understand or know how to say it. Levy suggested combining "active" and "television" to come up with Activision.[16][17]
Davis' management of Mediagenic failed to produce a profitable company; in 1991, Mediagenic reported a loss ofR$26.8 million on onlyR$28.8 million of revenue and had overR$60 million in debt.[11][34] Cyan severed their contract with Activision, and turned to Broderbund for publishing, including what would become one of the most significant computer games of the 1990s, Myst.[34]
Activision published the first-person perspective MechWarrior in 1989, based on FASA's pen-and-paper game BattleTech. A sequel, MechWarrior 2, was released in 1995 after two years of delays and internal struggles, prompting FASA not to renew their licensing deal with Activision. To counter, Activision released several more games bearing the MechWarrior 2 name, which did not violate their licensing agreement. These included NetMech, MechWarrior 2: Ghost Bear's Legacy, and MechWarrior 2: Mercenaries. The entire MechWarrior 2 game series accounted for more than US$70 million in sales.
Activision Publishing established Sledgehammer Games in November 2009. Formed earlier in 2009 by Glen Schofield and Michael Condrey, former Visceral Games leads that had worked on Dead Space, Sledgehammer intended to develop a Call of Duty spin-off title fashioned after the gameplay in Dead Space. However, 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.[53] Since then, Sledgehammer, Infinity Ward, and Treyarch share development duties for the flagship series, with support from Raven and other studios as necessary.
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