Activision

Activision

Address	11601 Wilshire Blvd. Los Angeles, CA 90025 Suite 1000
Country	United States of America
Founded	1979
Defunct	2023
Acquired by	Microsoft
Phone	(310) 473-9200
Fax	(310) 207-6131
Website	Activision

Founding of Activision

In the late 1970s, Atari was the epicenter of the home video game revolution. Its Atari 2600, launched in 1977, was a landmark console— but the company's internal culture lagged behind the creative explosion happening inside its labs. The talented engineers behind the games— developers like David Crane, Bob Whitehead, Alan Miller, and Larry Kaplan— were rapidly defining the medium. Yet, Atari treated them like replaceable parts.

These four programmers were producing the majority of the company’s hit titles. For example, by 1978, games written by just this small group were generating over half of Atari's cartridge sales. Despite that, Atari refused to acknowledge them publicly. When the developers requested royalties and name credits— common in music and film— executives dismissed them, with CEO Ray Kassar reportedly comparing them to “assembly-line workers.”

This toxic undervaluation sparked a quiet rebellion.

In mid-1979, Alan Miller and David Crane left Atari, with Bob Whitehead soon to follow. Larry Kaplan had already left but reconnected with the group shortly after. They realized that if they could produce high-quality games at Atari, they could do it independently— and take control of their creative and financial destinies.

To build a business, the four engineers needed someone with executive and publishing experience. Enter Jim Levy, a music industry executive who was intrigued by the idea of creating a game company that would credit its artists and operate with transparency. Levy saw the potential in a third-party publisher— something that had never been done before in the console industry.

In October 1979, the five co-founded Activision—with Miller, Crane, Whitehead, and Kaplan as the technical and creative minds, and Levy as the business leader. It became the first third-party video game publisher, marking a pivotal moment in industry history.

History

Early on, Activision focused on developing for the Atari 2600, without Atari’s blessing. This led to a landmark lawsuit, with Atari attempting to block Activision’s right to create and sell games for its system. But in 1982, the two companies reached a settlement. Activision paid a licensing fee, but their right to publish on the Atari 2600 remained intact— cementing the legality of third-party game development and opening the floodgates for companies like Imagic, Parker Brothers, and Coleco.

Activision's early titles—such as Dragster, Fishing Derby, Skiing, Boxing, and Kaboom!— were commercial successes. Just as important was the company’s branding: Activision was the first to publicly celebrate game designers, printing their names and photos in manuals and marketing materials, treating them as "software artists." This was a radical and empowering shift in an industry that previously hid its talent behind corporate logos.

By 1983, Activision was a major force in gaming. But success brought growing pains.

1983–1984: The Crash and Internal Changes

The video game crash of 1983, driven by market oversaturation and declining consumer confidence, hit hard. While Activision weathered it better than many competitors, the downturn strained its finances. At the same time, internal rifts began to form.

Co-founders Alan Miller and Bob Whitehead pushed to pivot the company toward personal computer games, but CEO Jim Levy was cautious. The disagreement prompted Miller and Whitehead to leave in 1984 and form Accolade, another influential third-party developer.

1985–1989: Reinvention as Mediagenic

Under Levy, Activision diversified aggressively. It expanded into business software, educational titles, and PC productivity tools. In 1988, to reflect its broader focus, the company renamed itself Mediagenic.

This expansion, however, proved risky. Mediagenic lacked focus and soon faced mounting losses. By the end of the decade, the company was on the verge of collapse.

1991–1997: Bankruptcy and the Kotick Takeover

In 1991, following bankruptcy proceedings, Mediagenic was rescued by a small group of investors led by Robert Kotick, a young entrepreneur who saw potential in the company’s dormant gaming legacy.

Kotick restored the Activision name and jettisoned its non-gaming ventures. His team focused the company back on console and PC gaming, slowly rebuilding its catalog and reputation with budget titles and licensed properties.

Activision’s 1990s revival included early hits like MechWarrior 2, Interstate '76, and Zork Nemesis. In 1997, Activision became a publicly traded company again, marking its official re-emergence as a serious force in gaming.

2000s: Franchises and Ascendancy

The 2000s saw Activision pivot toward blockbuster franchises and long-term brand development. Some of the major pillars of this era included:

Tony Hawk’s Pro Skater (1999–2007): A genre-defining extreme sports series.
Call of Duty (2003–present): Developed initially by Infinity Ward, it would become Activision’s flagship and one of the best-selling game franchises in history.
Guitar Hero (2005–2010): Acquired from Harmonix, the franchise exploded into a cultural phenomenon before burning out.

During this time, Activision began acquiring studios and IP aggressively, consolidating its position among the top publishers in the industry.

2008: The Merger with Blizzard

In a landmark industry move, Activision merged with Vivendi Games in 2008, gaining control of Blizzard Entertainment, the powerhouse behind World of Warcraft, StarCraft, and Diablo. The merger created Activision Blizzard, instantly one of the largest video game companies in the world.

Under the merged banner, Activision Blizzard had dual strengths: Blizzard’s online ecosystem and Activision’s console dominance, particularly with the Call of Duty series, which evolved into an annualized franchise.

2010s: Live Services and Esports

Through the 2010s, Activision Blizzard pivoted increasingly toward live service games, microtransactions, and digital distribution. Call of Duty remained central, spawning mobile versions and battle royale spinoff Warzone.

Meanwhile, Blizzard’s Overwatch (2016) helped the company enter the esports arena in a major way, with professional leagues and global tournaments.

But the 2010s were also turbulent. Blizzard’s reputation suffered amid layoffs, game delays, and controversy over corporate decisions. Internal tensions emerged over monetization, culture, and workplace treatment—culminating in public criticism and legal scrutiny by 2021.

2022–2023: Microsoft Acquisition

In January 2022, Microsoft announced its intention to acquire Activision Blizzard for $68.7 billion, the largest deal in gaming history. The acquisition faced regulatory scrutiny but was eventually approved and finalized in October 2023.

This move placed Activision’s massive franchises—Call of Duty, Diablo, Overwatch, Crash Bandicoot, and more—under the Xbox umbrella. Microsoft positioned the deal as a play for both mobile (via Activision's King, maker of Candy Crush) and future gaming ecosystems like cloud and subscription services.

Activision’s Legacy

From rebellious beginnings in 1979 to being part of one of the largest tech companies in the world, Activision’s journey mirrors the video game industry itself: a story of creativity, consolidation, crisis, and reinvention.

What started as four Atari programmers demanding credit turned into a publishing giant responsible for some of the most influential games of all time. And despite controversies and transformations, Activision’s impact—on game development, business models, and gamer culture— is immeasurable.

Logos

People

David Crane, Co-Founder
Larry Kaplan, Co-Founder
Alan Miller, Co-Founder
Bob Whitehead, Co-Founder
Jim Levy, Co-Founder

Titles

Links

Wikipedia
Activision, funding of, Software People Pages 51-53
Activision, growth of, Software People Page 52
Activision, in shakeout, Software People Pages 203-04