Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California.[3] Activision Blizzard currently includes three operating units:[4] Activision, Blizzard Entertainment and King.[5]
Founded in July 2008 through the merger of Activision, Inc. and Vivendi Games, the company owns and operates additional subsidiary studios, as part of Activision, including Infinity Ward, Treyarch, and Sledgehammer Games.[4] Among major intellectual properties produced by Activision Blizzard are Call of Duty, Crash Bandicoot, Guitar Hero, Skylanders, Spyro, Tony Hawk's, Diablo, Hearthstone, Heroes of the Storm, Overwatch, StarCraft, World of Warcraft, and Candy Crush Saga. Under Blizzard Entertainment, it invested in esports initiatives around several of its games, most notably Overwatch and Call of Duty. Activision Blizzard's titles have broken a number of release records.[6][7][8] As of March 2018, it was the largest game company in the Americas and Europe in terms of revenue and market capitalization.[9]
The company has also been involved in multiple notable controversies, including allegations of infringed patents and unpaid royalties. In late July 2021, it was sued by the California Department of Fair Employment and Housing on allegations of sexual harassment and employee discrimination.[10] The suit triggered an investigation by the U.S. Securities and Exchange Commission,[11] multiple workplace walkouts,[12] the resignation or dismissal of several employees, the loss of multiple company event sponsors,[13][14] and hundreds of workplace harassment allegations.[15]
Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion on January 18, 2022. The acquisition was completed on October 13, 2023.[16] Activision Blizzard is a subsidiary of Microsoft Gaming along with Xbox Game Studios and ZeniMax Media.[17]
History
Background and formation (2007–2008)
The original Activision company was founded in 1979, as a third-party developer for games on the Atari Video Computer System. In 1988 the company expanded into non-gaming software and renamed itself Mediagenic. This venture was not successful, incurring heavy losses. In 1991 a group of investors led by Bobby Kotick bought the company. Kotick instituted a large restructuring to reduce debt, including renaming the company back to Activision and moving it to Santa Monica, California. By 1997 the company was profitable again. Kotick spent the next decade expanding Activision's products through acquisitions of around 25 studios. This resulted in Activision publishing several successful series of games, including Tony Hawk's, Call of Duty, and Guitar Hero. However, by around 2006, the popularity of massively multiplayer online (MMO) games started to grow. Such games provide a constant revenue stream to their publishers, rather than only a single purchase, making them a more valuable proposition. None of Activision's subsidiaries had an MMO or the capability to make one quickly. Activision was also facing tougher competition from companies like Electronic Arts, as well as slowdowns in sales of its key game series.[18]
Games
- List of Activision video games
- List of Blizzard Entertainment games
- List of King games
Corporate structure
Activision Blizzard is divided into three key business segments:[82][83]
- Activision, which handles the development, production, and distribution of video games from its subsidiary studios. It also houses the Call of Duty League.
- Blizzard Entertainment, which handles the development, production, and distribution of Blizzard's games. It also maintains Battle.net, organizes BlizzCon, and houses the Overwatch League.
- King, which handles the development and distribution of its mobile games.
Esports initiatives
Activision Blizzard owns the Call of Duty and StarCraft franchises, both of which have been popular as esports.[84][85] On October 21, 2015, Activision Blizzard announced the upcoming establishment of a new esports division.[86] Named Activision Blizzard Media Networks, the division is led by sports executive Steve Bornstein and Major League Gaming (MLG) co-founder Mike Sepso, with assets from the acquisition of the now defunct IGN Pro League. Bornstein was appointed the new division's chairman.[84][85] On December 31, 2015, it was reported that "substantially all" of Major League Gaming's assets would be acquired by Activision Blizzard.[84]
Call of Duty Endowment
Since 2009, when Kotick launched Call of Duty Endowment (CODE), over 50,000 veterans have been placed in high-quality jobs.[99] In 2013 CODE started the "Seal of Distinction" program, which recognizes non-profit organizations that are successful in placing veterans in good jobs. Winners receive a $30,000 grant to use in their veteran job placement activities.[100] The goal of CODE is to help 100,000 US and UK veterans find high-quality jobs by 2024.[101] The endowment helps soldiers transition to civilian careers after their military service by funding nonprofit organizations and raising awareness of the value veterans bring to the workplace.[102]
Other legal disputes
Worlds, Inc.
Worlds, Inc. was issued several United States patents around 2009 related to "System and method for enabling users to interact in a virtual space", which generally described a method of server/client communications for multiplayer video games, where players would communicate through avatars. In early 2009, Worlds, Inc. stated its intent to challenge publishers and developers of MMOs, naming Activision as one of its intended targets.[103] Worlds, Inc. had already challenged NCSoft for its MMOs in 2008. The companies ultimately settled out of court by 2010.[104]
Worlds, Inc. launched its formal lawsuit against Activision Blizzard, including both Blizzard Entertainment and Activision Publishing, in March 2012, stating that Call of Duty and World of Warcraft infringed on its patents.[105][106]
See also
External links
References
- Bobby Kotick Breaks His Silence: Embattled Activision CEO Addresses Toxic Workforce Claims as Microsoft Deal Hangs in Balance Variety, May 31, 2023^
- Activision Blizzard 2022 Annual Report U.S. Securities and Exchange Commission, February 23, 2023^
- Evan Tarver. Top 5 Mutual Fund Holders of Activision Blizzard (ATVI, FOCPX)