Activision-Blizzard is not Blizzard
by Michael Sacco 
Apr 12th 2009 at 5:00PM
I worked at Blizzard for close to three years. During my time there I saw a lot of big things happen: the closing of the Console Division and shelfing of Starcraft Ghost, the launch of the first (and second!) World of Warcraft expansion ... and one that some people say is the biggest event in Blizzard's history, Vivendi Games' merger with Activision.
The merger was, of course, a controversial move; and, like any corporate maneuver, it's generated a lot of misunderstandings, misreporting, misinformation ... in general, it's been a flurry of mis-es. It's upsetting and frustrating to see so many people not understand what the merger means and, in turn, form stubborn opinions.
If you want to help curb ignorance and misunderstanding regarding what's going on with the merger, you're in luck. My former employment at Blizzard means I have a lot of information to share to set the record straight. Even if you're going to continue believing that Blizzard is somehow dipping in quality or in a bad way because of the merger, at least read what I have to say. It'll be worth it.
You can choose to believe these answers or not, that I was fed a corporate line or that I was unaware of things going on in offices on floors higher than mine. This is your prerogative. Just remember that I no longer have a vested interest in defending Blizzard or lying to back them up.
Let's first start with some basic questions.
What is Blizzard?
Blizzard is a game development studio and publisher. They create video games from start to finish and prepare them for distribution, as well as distribute the games they create.
What is Activision-Blizzard?
Activision-Blizzard is a publisher. It is the publishing company formerly known as Vivendi Games, which published studios like Blizzard and Sierra. Vivendi Games shares were converted into Activision shares, thus forming a new company of which Vivendi Universal immediately purchased 52%.
Is Blizzard's development run by Activision now?
No. Activision's development teams have not merged with or joined Blizzard's.
What was Activision before the merger?
A game publisher, and it remains as much.
What does a publisher do?
A publisher does just that -- it publishes and distributes games made by development studios. Publishers are likely to provide financial backing for development of games by their specific developers. Most studios have a single publisher that they work with for every title they develop.
Who published Blizzard's games before the merger?
Blizzard did!
Does a publisher control what a development studio makes?
In many cases? Yes. A publisher generally has certain criteria for what they want published, and are likely to instruct the developer on how and when a game will be published. This may include release dates, game content, etc. Thankfully, Blizzard still publishes its own games, not Activision, so this is moot.
Filed under: Analysis / Opinion
Reader Comments (Page 1 of 1)
Sundar Apr 12th 2009 5:18PM
Very nice article - its always nice to hear it from an insider..here at.. wow..insider. Ahem.
BigBiker05 Apr 12th 2009 9:59PM
Though this article is correct, it doesn't exactly stress what is happening. Vivendi is the marketing company, or rather publisher as you call it. Blizzard and Activision or video game making companies under this marketing company. Vivendi says "Hey, you guys both make video games, we'll merge you so you can benefit eachother". Like you said, Activision isn't making any shots over at Blizzard. BUT, Vivendi is still. They were and always will. They front this money, they want it back. A good way to find out what Vivendi is, go to their website. They are the financial company to other big companies everyone knows. Activision, Blizzard, Universal, Maroc telecom, and some other companies that I never heard of and probably aren't in the U.S. They didn't merge Universal and Blizzard, cause they make different stuff. Activision and Blizzard make the same type of products. Yet, I would put money that Universal will be making the Warcraft movie that we've heard so little about.
sikyon Apr 13th 2009 2:22PM
BigBiker is Absolutly right.
Activision did not purchase Blizzard. VINDEVI purchased Blizzard. It then went "Hey, we have two game companies now. Hmmm... It seems kinda retarded to have them compete against each other when both work for us now, so we'll merge them together."
Ta-da!
Yes, Vindevi has held activision for much longer. But I don't think they are so stupid to believe that they should make blizzard do things the way activision does them, because obviously there is evidence that blizzard does things differently and it works for them.
Blizzard is the company that throws out games slowly, but with exceptional quality and each one is a blockbuster.
Activision is the one that throws out games quickly, without the quality of Blizzard's titles.
The two serve different functions, obviously. Blizzard is effectively a profitable asset, although a 100% profit on 20 bucks is not as much as a 10% profit on 300 bucks.
Activision is the one that generates revenues first, profits second.
Therefore it is easy to see that really, there is no reason to merge the two companies or how they do business.
Now Vindevi might push blizzard to meet certain holiday deadlines. However, why push blizzard to meet those deadlines if activision is going to be releasing a ton of pushed titles then anyways? The two must not compete.
If anything, Activision comes out poorer in this merger than Blizzard. Activision is the factory which pushes out games. If you need games to be made for the holiday season, Activision is going to be put under the yoke before blizzard is.
Leviathon Apr 12th 2009 5:25PM
Think I have said this about 50 times in numerous WoWInsider blogs where the blogger said Activison Blizzard Blizzard basically.
Moppentoff Apr 12th 2009 5:37PM
I'll say it now. Activision Blizzard is potentially the new Old-EA. I say Old-EA because EA has changed it's tactics over the last year or so, and has become somewhat... human?
Riley Apr 12th 2009 6:19PM
Probably because of Peter Moore
Krick Apr 12th 2009 5:55PM
I used to work for one of the Sierra studios back when they were part of the conglomerate that owned Blizzard. This was right around the time when Starcraft was released because I remember getting my copy with my employee discount for $10 the day it came out.
There was a flurry of assimilation over a few years... CUC International -> Cendant Software -> Havas -> Vivendi...
By the time they were done, Sierra Online was destroyed, most of the talent that made their classic adventure games was laid off, most of their studios were closed. It was an awful time in the history of computer games. Mergers and acquisitions are definitely NOT a good thing.
I worked at the Dynamix studio in Eugene Oregon. I jumped ship right before the major layoffs began. Dynamix was eventually closed.
Read more here under the "black monday" section...
http://en.wikipedia.org/wiki/Sierra_Entertainment
...
Krick
http://www.tankadin.com
Kalis Apr 12th 2009 6:53PM
As a former Vivendi employee, I've been trying to say this for over a year!
Tyrsenus Apr 12th 2009 7:45PM
"There are no mergers, only acquisitions."
-Peter Drucker
SuckItTrebek Apr 12th 2009 10:02PM
"A publisher generally has certain criteria for what they want published, and are likely to instruct the developer on how and when a game will be published. This may include release dates, game content, etc."
DHUUURRRRRR BUT THEY TOTALLY DON'T CONTROL BLIZZARD AT ALL DHUUUURRRRRR The guys with the money make the rules. Right now what changes haven't been made against Blizz's wishes aren't Blizz's choice, it's Blizz's luck. One word from the man with the money and the new WoW expansion is Microtransaction Island and there's nothing Blizz employees can do but bend over and take it, or quit.
JF Apr 12th 2009 11:47PM
Wow, you should probably tell the shareholders this information. /snark
TheTreasoner Apr 13th 2009 1:21AM
Shelfing? You saw the 'shelfing'?
Man, way to go seeing something that doesn't exist.
Shelving.
email Apr 13th 2009 8:59AM
The grammar police, yay :-(
TheTreasoner Apr 13th 2009 10:25AM
No, me being the grammar police would be telling you that its the spelling police. But thanks anyway for playing.
Pook Apr 13th 2009 12:52PM
"No, me being the grammar police would be telling you that its the spelling police. But thanks anyway for playing."
Strictly speaking that would be the factual accuracy police, rather than the grammar division :p
Kerrun Apr 14th 2009 6:26PM
IncGamers is reporting that Blizzard Entertainment has secured the trademarks for Redneck Rampage, Redneck Rampage Rides Again, and Redneck Rampage Suckin' Grits on Route 66.
yeeeeeeaaaaaahhhhh...... Standards we've heard of it....
Pook Apr 13th 2009 12:48PM
The problem with this is that while Blizzard made a huge amount of money last yeah the rest of the business performed laughably badly. So instead of all that money going towards development of new content for us and shiny things for Blizzard employees, It has to be used to balance the book for the under performing parent company.
Anonymous Apr 13th 2009 4:12PM
You were a GM for 3 years and you thought it wasn't a conflict of interest to be writing articles for WoWInsider? I can only imagine why you were canned.
Ed Apr 13th 2009 4:55PM
So a guy from customer service knows the ins and outs of the development process at Blizzard pre and post merger? I don't think so.