Non-Fiction: Kotick confirms Activision Blizzard’s exploitation strategy

November 7th, 2008 at 3:00 pm · 6 Comments

For many months, I have speculated that Activision Blizzard is the gaming industry’s newest evil empire. Back in July, the then newly-merged company revealed that it would not be publishing a number of titles in Vivendi’s portfolio, which included “Ghostbusters: The Video Game” and “Brutal Legend.” Instead, the company opted for established franchises like “Spyro the Dragon” and “Crash Bandicoot.” Fortunately, Atari has officially picked up “Ghostbusters” and “The Chronicles of Riddick: Assault on Dark Athena.” However, Tim Schafer’s “Brutal Legend” is still without a publisher, and it is rumored that Activision Blizzard is impeding the search.

In the following months, company executives have remained tight-lipped in regards to the dropped titles.  However, at the publisher’s recent Q3 earnings call, CEO Bobby Kotick revealed what most gamers probably already knew: Activision Blizzard wants to stay away from financially risky games.

Essentially, the industry’s largest third-party publisher wants to make piles of cash off of its established franchises by exploiting the living bejesus out of them. Thus, games like “Brutal Legend,” which “don’t have the potential to be exploited every year across every platform,” were dropped by the company.

According to Gamasutra, which was present for the call, Kotick stated:

So, while there are lots of promise for a lot of these products that we had in the portfolio, I think, generally, our strategy has been to focus — especially given the increase in development expenditures on the products that have those attributes and characteristics that we know if we release today, we’ll be working on 10 years from now.

He went on to say that companies should still pursue fresh ideas, but need to be judicious.

You still need to have production of new original intellectual property, but you need to do it very, very selectively. And if you look at the number of new original intellectual properties successfully launched in the market each year over the last five or ten years, it’s a small, single-digit number.

A single-digit number? That seems like a ridiculously low estimate, especially since games like “Dead Space,” “Rock Band,” “LittleBigPlanet,” “Uncharted: Drake’s Fortune,” “Assassin’s Creed” and “Mass Effect” have launched in the past year. “Mirror’s Edge,” another new IP from Electronic Arts, is set to release on Nov. 11.

Jump over to page two for my thoughts.

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Related posts:

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  2. Activision CEO reveals terrible truth
  3. Activision Blizzard: The Lowdown.
  4. Activision Cock Blocks Harmonix
  5. 37. Activision taking the #1 publisher spot from EA

Tags:
Categories: Editorial

  • jcblough

    I agree with your comments in general, but specifically you neglect to consider despite exploiting guitar hero and World of Warcraft(42% of Bizzard-Activision’s income) they lost $147 million last quarter. That’ll make you re-evaluate your strategy. It maybe cool to gripe about 3rd party titles getting cut, but I”d rather them wait and play conservative and be around when the economy turns rather than burn out taking chances.

  • Prophet

    Ok, jcblough, I think you’re wrong. The loss was 108 mil and it was on accusations…ie they bought lots of stuff to help them make more money(Blizzard deal)…i have it on authority that they print their own now. Revenue is something like 700 million total…I have no idea what net is. Basically they spent a ton and posted a loss….

  • SWSilentkiller

    You know, I don’t think even EA has done stuff that is this dickish. I mean why would they impede the search for a publisher on Brutal Legend? Why wouldn’t they publish ghost busters? I mean ghost busters is a well established franchise and I have heard good things about the gameplay. I mean honestly some of this stuff doesn’t make sense

  • Lord Butters I

    Sequels sell more reliably than new material. I hate to be devils advocate here, but a new Guitar Hero game is pretty much guaranteed to make a fortune, a Tim Shafer game? Not so much.

  • Habadasher

    That seriously sounds like a stupid move to me, surely they should be rushing to have new IPs so they have more franchises to exploit.

    Besides the fact that new IPs will keep the market interesting instead of becoming completely stagnant with re-hashes of the same game released annually!

  • psyco skull

    man,i think that im gonna buy rock band