Activision

Activision Publishing, Inc. is an American video game publisher based in Santa Monica, California. It serves as the publishing business for its parent company, Activision Blizzard, and consists of several subsidiary studios. Activision is one of the largest third-party video game publishers in the world and was the top United States publisher in 2016.

The company was founded as Activision, Inc. on October 1, 1979, in Sunnyvale, California, by former Atari game developers upset at their treatment by Atari in order to develop their own games for the popular Atari 2600 home video game console. Activision was the first independent, third-party, console video game developer. The video game crash of 1983, in part created by too many new companies trying to follow in Activision's footsteps without the experience of Activision's founders, hurt Activision's position in console games and forced the company to diversify into games for home computers, including the acquisition of Infocom. After a management shift, with CEO Jim Levy replaced by Bruce Davis, the company renamed itself to Mediagenic and branched out into business software applications. Mediagenic quickly fell into debt, and the company was bought for around US$500,000 by Bobby Kotick and a small group of investors around 1991.

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 2023, Microsoft acquired parent company Activision Blizzard, maintaining that the company would 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.

In 1976, Warner Communications bought Atari, Inc. from Nolan Bushnell to help accelerate the Atari Video Computer System (Atari VCS or later the Atari 2600) to market by 1977. That same year, Atari began hiring programmers to create games for the system. Prior to Warner's acquisition, the company did not award bonus pay to programmers who worked on profitable games, nor credit the programmers publicly, to prevent them from being recruited by rival game companies. Warner Communications' management style was also different from Bushnell's. According to developer John Dunn, Warner management treated developers as engineers rather than creative staff, creating conflicts with staff. Atari's CEO Ray Kassar, named to that position following Warner's acquisition in 1978, was committed to keeping production costs minimal for Warner.

In early 1979, Atari's marketing department circulated a memo listing the best-selling cartridges from the previous year to help guide game ideas. Crane noted that the games he was fully responsible for had brought in over $20 million for the company but he was still only receiving a $20,000 salary. Out of a development staff of thirty-five, four programmers (Crane, Larry Kaplan, Alan Miller and Bob Whitehead), had produced games that had accounted for 60% of Atari's sales.

Crane, Kaplan, Miller, and Whitehead became vocal about the lack of recognition within the company and became known as the "Gang of Four". The group met with Kassar in May 1979 to demand that the company treat developers as record labels treated musicians, with royalties and their names on game boxes. Kaplan, who called the others "the best designers for the [2600] in the world", recalled that Kassar called the four men "towel designers" and claimed that "anybody can do a cartridge".

The four made the decision to soon leave Atari and start their own business, but were not sure how to go about it. In 1979, the concept of third-party developers did not exist, as software for video game consoles were published exclusively by makers of the systems for which the games were designed; thus the common thinking was that to make console games, one needed to make a console first. The four decided to create their own independent game development company. They were directed by their attorney to Jim Levy, who was at the time raising venture capital to get into the software business for early home computers. Levy listened to their plans, agreed with its direction, and helped the four to secure about $1 million in capital from Sutter Hill Ventures. They also checked with legal counsel on their plans to develop games for the Atari VCS, and included litigation fees in their capital investment.

By August, Crane and Miller had left Atari, with Whitehead joining them shortly after. 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. 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.