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From Atari to World Domination: How Activision Rewrote Video Game History?
In the history of video games, the story of Activision is not only the rise of a company, but also the epitome of innovation in the entire industry. As one of the world's largest third-party game publishers, Activision's success stems from its founders and its ever-evolving business strategy. Since its founding in 1979, Activision has continuously adapted to market changes, starting with the Atari 2600 and expanding into major game platforms, eventually becoming a diversified business entity. This article takes you on a journey through Activision's history, revealing how it rewrote the history of video games.
Creation and revolutionary ideas
In 1979, four former Atari game developers decided to form their own game development company because they were dissatisfied with the company's treatment. They realized that as independent third-party developers they could create more new and engaging games. Activision's founders included David Crane, Larry Kaplan, Alan Miller and Bob Whitehead, who were originally known as the "Gang of Four."
Their intention is that game developers should be treated similarly to musicians, with royalties and their names appearing on game boxes.
This idea was very forward-looking at the time, because the game industry at that time generally did not value the contributions of developers. Such courage allowed Activision to successfully create a third-party developer model and become a model for other companies to follow.
The early stages of success
Activision's early games such as Kaboom! and Pitfall! were wildly successful. Especially "Pitfall!", the game eventually sold more than four million units and established Activision's position in the gaming industry. Activision thus began to further expand its presence in the market.
Electronic Games magazine once said: "I doubt there is anyone who owns an Atari 2600 who doesn't own at least one Activision game."
This shows that Activision's games are not only welcomed by the market, but also establish a strong brand identity in the hearts of players.
Facing the Challenge: The 1983 Game Crash
However, as the industry exploded, Activision also suffered the impact of game crashes. The gaming crash of 1983 was partly due to the emergence of too many developers on the market, which resulted in oversupply and many games becoming slow sellers. While Activision managed to survive, revenue dropped significantly, plummeting from quarterly results to millions.
This collapse not only impacted our revenue, it also forced us to rethink our business model.
As a result, Activision began to seek to diversify into the home computer gaming market to adapt to changing industry needs.
Mediagenic’s struggle with difficulties
In 1988, Activision changed its name to Mediagenic and attempted to further expand into other software areas. However, this expansion attempt failed and the company faced financial difficulties due to poor management. During this period, Mediagenic suffered heavy losses in the business and was eventually acquired by Bobby Kotick in 1991 for $500,000.
Bobby Kotick recognized the value of the Activision name and decided to revive the brand.
Kotick immediately underwent a massive reorganization, laying off most of its staff and reimagining the company's operations to expand into a wide range of game publishing and development.
From crisis to growth
After restructuring, Activision went public again in 1993, marking a new era of growth for the company. Kotick began a succession of acquisitions of other developers, including Raven Software and Neversoft, who created classic games such as Tony Hawk's Pro Skater, laying further foundations in a rapidly growing market.
The advent of the digital age
With the changes in the gaming industry, Activision began to gradually enter the era of digital games and launched the "Call of Duty" series of games that attracted millions of users. This strategic shift allowed Activision to grow in a highly competitive market and eventually become the global leader in the video game industry.
In the process of this rise, Activision not only changed its own destiny, but also changed the pattern of the entire game industry.
Conclusion: Future Outlook
With Microsoft acquiring Activision Blizzard in 2023, can this legendary brand continue to lead the fashion in the trend of digital games, and even lead the future of the entire industry?
