You might not recognize the names immediately, but if you are a gamer, trust me they are embedded deep within your subconscious.
If you’ve played Call of Duty, Tony Hawk’s Skateboarding games, and guitar hero, then you should know that Activision is behind them all, while Blizzard, the gaming studio arm of Vivendi Entertainment, is the mighty developer of War Craft!
EA on the other hand is like the Microsoft of games, they have a best seller in each gaming category, and are the largest independent game developer, ruling alone an empire of games with no rival of same size or structure – until this merger showed up.
Vivendi has acquired Activision, allowing a new gaming monster to rise and stand in the face of EA, and funny enough the owner of this new empire is not a dedicated gaming house, but a Media Company.
The beauty of the new alliance is that while Activision is mainly focused on console games, Blizzard is taking the online gaming route and been very successful in it, with 9 million players worldwide for World of Warcraft alone, promoting interactive entertainment and “massively multiplayer” games over the internet.
The new entity is to be named: Activision Blizzard – very creative
If you think this is all silly, you should know that by end of 2007, expected revenue for EA is $3.7 Billion, while the same for Activision & Blizzard combined is $3.8 Billion, keeping in mind that the new venture is valued at $19 billion dollars.
The main reason behind the merger as stated by Activision’s chairman, is the interactive added value Blizzard can bring to Activision. When they could not find a way to duplicate it, they preferred to merge with the expertise in the field.
This is a clear home run for internet, cutting through another medium once again – Video Games – and affecting it at large in the very first strike.