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Kotick to keynote DICE Summit Sessions
Last time we heard from Activision CEO Bobby Kotick, he was explaining how terrible one of his company's franchises was. He's previously joked about increasing prices even further. If you want to be there when he issues his next great Quotick, you should go to the DICE summit -- or, barring that, wait five minutes for shocked journalists to pass it along. The Academy of Interactive Arts and Sciences announced that Kotick will open the Summit Sessions with a talk about "how creative talent drives the video game industry." That is, creative talent who is not having any fun. "Activision Blizzard is home to some of the most talented developers in our industry and we are thrilled to have Bobby's insight on how great games are built upon great talent," AIAS president Joseph Olin said. Kotick's talk will take place Thursday, February 18.
Nathan Drake hoping to take home more shiny trinkets at AIAS awards
We're in the thick of awards season, and video games are no exception. The Academy of Interactive Arts and Sciences has announced its finalists for the 13th Annual Interactive Achievement Awards ("The 'Racties" -- we're kidding but that's what they should be called), and, as you might have guessed, award hog Uncharted 2: Among Thieves leads the pack with 15 nominations. The rest of the nominees include more of the usual suspects from 2009: Assassin's Creed II with 10 noms, Call of Duty: Modern Warfare 2 with nine and Batman: Arkham Asylum with eight. This year's awards also features three new categories, including Outstanding Achievement in Game Design and Portable and Social Networking Games of the Year. You can find a list of selected categories and their nominees after the break, or check out the Academy's full list in PDF form. The awards will be given out at the DICE Summit on February 18 in Las Vegas, where Activision's Bobby Kotick is scheduled to keynote. We can only guess that he'll go all Kanye on the podium if Modern Warfare 2 doesn't win.
Bobby Kotick didn't think Blizzard was worth $7 million in '96
Have you ever looked at something new on the auction house and thought "Who would pay a thousand gold for that," only to find that months later the item has skyrocketed in price and you missed a golden opportunity to pick it up on the cheap? Activision kingpin Bobby Kotick might make the same analogy. If he played video games, I mean. The Escapist clued us in to this little story: back in 1995, Kotick was eating lunch with some folks from Davidson & Associates, and they told him that they had just bought up-and-coming software developer Blizzard Entertainment for the tidy sum of seven million dollars -- a number that a baffled Kotick believed to be ridiculous. At the time, Blizzard's claim to fame was Warcraft: Orcs vs. Humans, and ... that's pretty much it, save for a few one-off games like Blackthorne and The Lost Vikings. Kotick called them nothing more than a "contract developer" and remarked that they weren't worth seven million bucks. Of course, later that year, Blizzard released Warcraft II: Tides of Darkness, which catapulted them into gaming history forever. Thirteen years later, in 2008, Kotick (and Activision) paid seven billion dollars to acquire Blizzard. For those not into mathematics, that's one thousand times more than what Davidson & Associates paid. Well, he was right about one thing. They definitely weren't worth seven million bucks. He just didn't know how right he was at the time.
Kotick: Activision's Spider-Man games have 'sucked'
Activision CEO Bobby Kotick didn't just talk up the DJ Hero franchise in his recent Game Informer interview. According to Destructoid, he also disparaged the quality of his company's Spider-Man games. "Our Spider-Man games have sucked for the last five years," Kotick said, inadvertently revealing that he must not have played either the 360/PS3 or DS Web of Shadows games. "They are bad games. They were poorly rated because they were bad games." As for why they sucked: "We went away from what is Spider-Man," Kotick said. "It's about web-slinging. If you don't do web-slinging, what is the fantasy of Spider-Man?" Since this is Activision, we can speculate about how the company will focus on web-slinging: By packaging a special "web shooter" controller with the game in a big $120 box. And, of course, a new developer will be involved with whatever happens with the franchise since next-gen Web of Shadows dev Shaba Games is no more.
Activision missed opportunity to buy Blizzard for $7m
Activision CEO Bobby Kotick mentioned in a recent interview that he could have bought World of Warcraft developer Blizzard Entertainment back in the mid-'90s for a mere $7 million -- instead of having to do that whole $18 billion deal 12 years later. Speaking with Game Informer, the polarizing executive notes that during a dinner in 1995 he was shocked that another company bothered to buy Blizzard for $7 million. That year, Kotick says that Activision had about $60 million in revenue. The executive thought at the time that his dinner companions were "out of [their] minds." In fairness, Blizzard only really had Lost Vikings and Warcraft in those relatively early years of the developer. It's actually Blizzard founder Mike Morhaime who is probably kicking himself more (financially speaking) now, as Kotick relays that Morhaime told him recently,"Yeah, could you imagine if I had just held out for the seven billion instead of the seven million?'"
Kotick: Activision 'sticking with' DJ Hero franchise
We know that Activision is planning a second DJ Hero game -- thanks to David Guetta and word that Activision is looking for some new talent. Now we've heard confirmation of the game from the same source that semi-officially revealed the first game: Activision CEO Bobby Kotick. Kotick justified the development of a sequel to the less-than-hit music game in an interview with Game Informer. "I think DJ Hero is a really innovative product," he said. "I can't wait for you to see next year's. That's the thing; we're sticking with it. We'll stick with it and get it right. But it's going to be less games, better games. That's our strategy." That's right -- somehow, Kotick managed to use an annual DJ Hero sequel as proof of a "less games, better games" strategy. We suppose it is noteworthy that Activision's only doing one DJ Hero this year, given that 2009 saw six Guitar Hero games.
Modern Warfare 2 makes a billion dollars
Was one of your goals for 2009 to give Activision a billion dollars? It may be a little late, but that's what you all, in aggregate, have done -- and that's only for Call of Duty: Modern Warfare 2. The publisher announced that Infinity Ward's mega-hit FPS just crossed the $1 billion threshold in sell-throughs. Which means, yes, that some of that billion went to retailers and not just Activision. The company reminded us that $550 million of those sales happened in the first five days, meaning that more than half of the game's total worldwide sales occurred right at launch. "There are only a handful of entertainment properties that have ever reached the $1 billion mark," Activision CEO Bobby Kotick, beneficiary of some of that one billion dollars you put into this game, said, "which illustrates the power of the Call of Duty franchise and mass appeal of this game."
Your pal Bobby earns $20 million in stock sale
What does an Activision Blizzard CEO do to celebrate the most successful launch in entertainment history? Sell his stock, of course. Earlier this week, CEO Bobby Kotick sold nearly two million shares, roughly 40 percent, of his investment in Activision Blizzard alongside the launch of Modern Warfare 2. GameSpot notes that the sale earned Kotick approximately $20 million, with a gain of about $10 per share sold.While Kotick's sale couldn't have come at a better time (for someone looking to sell), his massive stock dump could be cause for concern for investors. Consider that there may be a few weaknesses in Activision's current strategy, including relying on sales of music games, a vital part of the publisher's empire, which have been slowing down. Activision's focus on iterative brands may also be vulnerable to sales slumps, as EA discovered when consumers became disinterested in worn-out franchises like Medal of Honor. Certainly, Kotick's stock sale could indicate that Activision has peaked as a publisher.Then again, chances are, it hasn't.Update: A reader informs us that Kotick still has many "unvested holdings," and with these stock options expiring in the spring, Kotick is forced to sell his remaining vested stock "or else he just gives up those millions for free." Essentially, this sale doesn't relate to his valuation of the company's economic position.
Activision establishing 'Call of Duty Endowment,' donating $1 million to war veteran aid
On the eve of Modern Warfare 2's official release, the game's publisher has announced intentions to donate $1 million to veteran-related charities through a newly created foundation. The "Call of Duty Endowment" (or simply "CODE") is said to "support other groups that assist veterans with their careers," reports the Washington Post. Though he's mostly known for facepalm-inducing hard business quotes, Activision head Bobby Kotick thoughtfully commented, "How do you expect people to actually join the military if when they leave the military they can't integrate back into the free market they're supposed to be protecting? The joblessness rate that [veterans] should have should be far less than the national average, not more." The foundation's first donation will be for $125,000 to the Paralyzed Veterans of America and will go towards the opening of a vocational rehabilitation center.
Guitar Hero, Call of Duty franchises lead Activision's 'better-than-expected' Q3 2009
Look, just feign surprise, it makes these financial posts so much more exciting: Activision today reported net revenues of $755 million (on a non-GAAP basis) in the quarter ending September 30, 2009 -- that's $55 million more than the suits hoped to stack, according to previous projections. While the blockbuster adaptation of Transformers: Revenge of the Fallen might have played a part in this outpouring of our money, we're gonna go with Kotick's explanation: "Our performance was driven by positive audience response to Activision Publishing's Guitar Hero 5, Marvel: Ultimate Alliance 2, and the Guitar Hero and Call of Duty franchises, as well as Blizzard Entertainment's World of Warcraft." In fact, the CEO called Guitar Hero the year's "#1 best-selling third-party franchise in North America and Europe" through September, claiming that U.S. sales of music games increased 72 percent year over year in September. Last year's big-band-box edition, World Tour, and Call of Duty: World at War combined for total, world domination, becoming this year's "#1 and #2 best-selling third-party titles" in North America and Europe through September, according to Activision. Additionally, World at War DLC map pack sales continued to climb last quarter and have now surpassed 7.5 million purchases. Needless to say, the publisher is not backing off of its prior financial outlook. Activision anticipates annual net revenues of $4.5 billion (on a non-GAAP basis) at the close of the year. Did you remember to feign surprise?
Kotick's 'Skepticism, Pessimism, and Fear' become custom classes at Modern Warfare 2 event
This week Bobby Kotick established himself as the Bond villain of the video game world with his remarks about "[taking] all the fun out of making video games," and encouraging a corporate culture of "skepticism, pessimism, and fear."Modern Warfare 2 developer Infinity Ward seems to have received the message loud and clear, though its own manifestation of that culture may not be what Kotick had in mind as he ranted. NeoGAFfer Full Recovery noticed custom class names called "Skepticism," "Pessimism, and "Fear" on the projector during this week's Modern Warfare 2 event. We went back to our own photos from the event, and there it is! We're glad to see that the developers of the potential "best selling title of all time" aren't afraid of Kotick. Or at least that they're unafraid enough to sneak a furtive joke or two. It's still probably all "yes, sir," and deep bowing when Kotick makes an appearance in the office.%Gallery-73088%
Activision Blizzard's CEO is a funpire
Bobby Kotick isn't just the CEO of Activision Blizzard. He's also the CEO of Activision Blizzard who recently said, "You have studio heads who five years ago didn't know the difference between a balance sheet and a bed sheet who are now arguing allocations in our CFO's office pretty regularly," Then again, as Ars Technica has pointed out, his incentive program that, "rewards profit and nothing else." may have something to do with that.That's not all Bobby Kotick recently said, however. He's also known for this uplifting little diddy, "We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games." Now that quote may be out of context, but what kind of context can make that look... well, good or even mildly acceptable?Something smacks of bad omens here. Sure, things are going good right now for the company that puts out Blizzard games and Call of Duty, but when a company's Chief Executive Officer is saying things like, "We are very good at keeping people focused on the deep depression," it may be time to double-check your neck for bite marks and then get the hell out of Irvine.
CE-Oh no he didn't! Part LXIII: Bobby Kotick says Guitar Hero going plug-and-play, developers kept in state of 'skepticism, pessimism, and fear'
You know those Atari controllers that let you play Atari games without actually having an Atari? That, it seems, is the future of the Guitar Hero franchise, with Activision CEO Bobby Kotick indicating that new titles from the company will be playable "independent of a console." It's perhaps a natural step, as the franchise's developers must surely spend half their time frantically porting games from PS3 to Xbox 360 to Nintendo DS to graphic calculator to... well, you get the picture. Kotick also said some wondrous things that will make those Activision coders slouch even further into their chairs, developers who already were surely fearing for their jobs, indicating that they live within a corporate environment of "skepticism, pessimism, and fear" with the hope of "keeping people focused on the deep depression," and that he wants to take "all the fun out of making video games." So, then, that My Chemical Romance edition of the series should be announced any time now. [Via Joystiq]
Activision CEO talks console-less Guitar Hero, turning fear into profit
When he's not predicting the downfall of all forms of entertainment at the hands of video games, Activision CEO Bobby Kotick is talking about how his company's bottom line is more important than folks having fun making the games we play. That's just one of the things GameSpot reports he touched on at today's Deutsche Bank Securities Technology Conference in San Francisco, Calif. The talk included hints at a future Guitar Hero that doesn't require a console (thus, as he explained, giving the company "some leverage with first parties when it comes to downloadable content and the business model) and a promise that the industry can "expect many of [Activision's] products to be playable independent of a console." Kotick didn't explain his comments further, leaving us to wonder if he means something along the lines of the specialized plug-and-play "TV Games" found in the toy department at Target. Before delving into the strange and disturbing, Kotick remarked on the likelihood of next-generation consoles coming anytime soon, saying that Activision hasn't received any indication of new hardware from the big three console makers -- something it usually sees roughly two years before a new console launch.Now for the promised strange and, yes, disturbing comments on Kotick's part. What may have been music to bean counters' ears still has ours ringing, as he described tailoring developer bonuses to "really [reward] profit and nothing else" and how an air of "skepticism, pessimism, and fear" is promoted within the company with the goal of "keeping people focused on the deep depression." You know, so they focus on profit and nothing else. It's all to plan, though, seeing as Kotick confided that, "The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games."
Kotick: Video games could trump TV and movies within five years
Profiled on the website of money magazine Barron's, Activision-Blizzard boss Bobby "Guitar-Toting" Kotick reckons that film and television are living on borrowed time as the most prolific forms of entertainment. Speaking on gaming's (near) future, he said, "I view the medium as having the potential to eclipse film and television," going on to tell the article's author that it could happen within five years.According to the piece, the one element Kotick sees as being crucial to this is rendering believable human characters in real time, something he thinks the next round of consoles will be capable of. (You have to wonder what sort of sneak peeks he's been privy to in his position.)BTW, it's probably best not to inform David Cage that all the work he's putting into creating characters you can care about in Heavy Rain is for naught, since it's just not possible this gen.[Via Edge Online]
Activision-Blizzard and their financial future
Barron's has a long article up about Blizzard's corporate overlords at Activision-Blizzard, and as is usual with most pieces of Activision news, people will probably see in it what they want to see. Those who think Bobby Kotick is just a money-grubbing exploiter will find more fuel for their firey fanboy rage: apparently he's a follower of Las Vegas casino entrepreneur Steve Wynn, and is modeling some of Activision-Blizzard's business plan off of that guy, Shareholders, however, will probably be thrilled. In terms of a purely financial sense, Activision-Blizzard is apparently one of the shinest futures around, with Kotick bragging that videogames will eclipse film and TV in terms of moneymaking in just a few years.From our perspective, as longtime fans and players of Blizzard's games, the most interesting thing I see here is that Barron's makes no distinction at all between Activision and Blizzard any more -- the Activision-Blizzard company, according to the article, is equally responsible for both the Starcraft and Transformers franchises. Obviously, as gamers, we see a huge distinction between those two: one is a classic, storied, much-loved videogame series, and the other is a cash-in on a license that's panned everywhere but the box office. But for the financial guys, they're just both properties of Activision-Blizzard. That's not to say that our Blizzard is entirely lost (anyone who was at BlizzCon last week knows that's not true), but it is a sign that the merger is no longer news. From an outsider perspective, Guitar Hero and World of Warcraft are just two cash cows from the same company.
Blizzard on the Battle.net update
Activision-Blizzard held their second quarter conference call yesterday, and in addition to addressing the Starcraft II delay, both Mike Morhaime and Activision CEO Bobby Kotick shared some insight into what the revamped Battle.net will be like. The brand new system (which is currently up and working, albeit in a very skeleton form so far) will have "social networking features, cross-game communication, [and] unified account management," in addition to features that will let players "share experiences" with each other online (we'd presume that means things like screenshot galleries and leaderboards, but who knows?). Kotick also spoke up, and compared the service to that other popular online community, Xbox Live.Blizzard is still saying the new Battle.net will come in conjunction with the new Starcraft, so we'll have to keep an eye out for them both in the first half of 2010. It'll be interesting to see what other features Blizzard adds in, and exactly what form features like "cross-game communication" take -- do they mean actual in-game messaging across games, or just status updates and messages on a social network? Kotick's comparison to Xbox Live raises some questions, too, as that's a much wider service than you'd think Battle.net would be. But then again, the guy's a CEO, and all CEOs have a tendency to overestimate exactly what their company is doing. Like most of Blizzard's upcoming releases, we'll have to wait and see on Battle.net.
Activision exceeds own expectations in fiscal Q2
Once again, Activision has posted positive results in its quarterly earnings report. Its $1.038 billion revenue exceeded the $1 billion the company expected to bring in this quarter, its fiscal Q2. According to the report, the company was the "#1 North American third-party console and handheld publisher for the quarter and first six months of the calendar year, according to the NPD Group, Charttrack and Gfk." CEO Bobby Kotick attributed the successful quarter to Prototype, the Transformers and X-Men Origins licensed games, Call of Duty, Guitar Hero, and, of course, Money Farm World of Warcraft. However, despite the recent success, the company is lowering its outlook for the rest of 2009 because of its delays of StarCraft II and Singularity.
NPD: World of Warcraft has sold 8.6 million boxes at retail
Gamasutra has received an interesting stat from the good folks at NPD: after hearing that The Sims 3 sold over 800,000 copies in its first month, they were curious to see what kind of unit sales our own World of Warcraft has experienced. And the numbers are pretty big: among the original game and all of the expansion packs since the vanilla release over four years ago, NPD says 8.6 million boxes of WoW have been sold in the US. That's a little misleading if you're comparing it to actual subscription numbers: remember that this is over three different releases (so the actual number of all-time players, not current players, is probably 1/3 of that), and it includes different collectors' editions of each of the three game editions. So there are nowhere near 8.6 million US players of WoW -- that's just how many times players have come through the retail line with the various releases.What that is, however, is a lot of money. Gamasutra estimates that at an average of $30 for each unit sold (the vanilla game currently retails at $20, but the expansions all sell at $40, and of course the original game was more expensive once upon a time), that's $258 million in income for Blizzard. In short, Blizzard's making a mint at the retail counter, even before they sign anyone up for subscriptions.Then again, if you look at their own costs, those aren't insubstantial, either -- Activision's Bobby Kotick claimed that anyone starting up an MMO to compete with WoW would have to throw at least half a billion dollars into the mix just to get started, so we can presume Blizzard has spent at least $500 million on their staff, development, and hardware. So it's not like they're taking it all to the bank, though we can at least presume they're sitting firmly in the black.
Stringer responds to price cut pressure from Activision
Sony's Sir Howard Stringer wasn't scared by Activision CEO Bobby Kotick's suggestion that his company may have to stop supporting the PlayStation 3 if the price didn't decrease. "He likes to make a lot of noise," Stringer said, discussing the statement at the Allen & Company Sun Valley Conference -- the same event at which, last year, he described the Wii as "an expensive niche game device." "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."If Sony cut the price of the PS3 as Kotick suggested, Stringer said that "I (would) lose money on every PlayStation I make -- how's that for logic." It's actually a kind of logic that Sony is quite familiar with, given that the company loses money on every PlayStation 3 it makes right now.[Via Engadget]
