Develop magazine got to talk to Thomas Tippl, who is Activision's CFO (we've heard a lot from CEO Bobby Kotick, but never from Tippl before) about the Activision Blizzard merger and how it will affect both companies. Tippl reiterates what we've heard before: that Activision has no plans to tell Blizzard how to do their jobs when they've been doing so well already.
He does, however, say that a "portfolio review" is in order, and so employees of Sierra (Vivendi's other games division) should start working on their resumes, if they haven't started already. He also says the sales teams of each company will likely be consolidated -- they want to put an "all-star team" together, but the thing about stars is that not everyone can be one.
So the merger remains good news for Blizzard, not-so-good news for the rest of Vivendi. We're still curious to see what happens when/if Blizzard falls out of Activision's good graces. Sure, everything is peachy-keen right now, but when Blizzard's stubborn commitment to quality bumps up against Activision's almost yearly franchise releases, who'll walk away the victor?
The judge ruling on a dispute related to the Vivendi-Activision deal has used WoW metaphors for the actions of the litigants. William B. Chandler III, the chief judge of the Delaware Court of Chancery, showed an unusually keen grasp of the dynamics of the game -- way more than either of my parents would understand. His ruling describes, among other things, crafting, questing, battlegrounds, guilds, and even our unique linguistic habits. (My mother, for example, calls them typos.) Continuing his analysis, Judge Chandler says that the world of Mergers & Acquisitions is similar to an MMORPG where "participants take on certain roles, interact in their own community, hone specialized skills, and even develop a unique, somewhat curious vernacular." The judge concluded his denial of the injunction with the words "GAME OVER."
Judge Chandler is no stranger to hipness. In previous decisions he has also made references to 50 Cent, Ray Charles, Notorious B.I.G., and Cerberus, the mythological dog that guarded the gates of the underworld. Perhaps he's trying to keep the jurors awake?
This past Monday, June 23, The WotLK Information Wiki relaunched on a new web host after having been pulled down by a Cease and Desist order from Blizzard. Darkside, one of the admins for the WotLK Information Wiki, gave an interview to Medros over at All Things Azeroth to explain what happened. The interview was conducted as part of Medros' podcast Episode 53. Some highlights from the interview include:
Most of the information that the alpha wiki provides is a result of file and image extraction from Blizzard's publically-available alpha client.
The alpha client files contain all the information on the spells, creatures and environments to be tested and new things are added or subtracted each time the alpha is patched.
The alpha wiki folks set up a "sandbox" where they could fly through the new locations and spawn creatures for screenshots.
A small portion of the WotLK info -- some screenshots, for example -- has come from Blizzard employees under non-disclosure agreements the identities of whom the alpha wiki admins protect.
Blizzard, Vivendi, and Activision IP addresses had visited the wiki frequently since it began.
The Cease and Desist order from Blizzard arrived last Friday, June 20. Over the weekend the WotLK wiki admins tried several ways to appease the lawyers and eventually settled on moving to a new web host.
The wiki's readership is approximately 200,000 page views per day.
Go to All Things Azeroth to hear the rest of the interview. Make sure you listen to the first few minutes of the podcast to hear a very humorous and well-sung parody of Johnny Cash's Folsom Prison Blues called Pugging Kara Blues.
In Blizzard company news, another major milestone for the planned Blizzard-Activision merger is now set for July 8th, when a special meeting of Activision's shareholders will vote on their merger with Vivendi Games, Inc., the parent company of Blizzard. The meeting will take place in Beverly Hills, CA.
The timing of this meeting is apparently later than expected according to sister site Big Download, but it is worth noting that it still beats out E3, which will take place on July 11th-13th. You'll recall that Blizzard and Activision dropped out of E3. Rumor has it that they are also planning to hold a press conference during E3, on the first day, and being able to reveal final details of when, where, and how the merger will complete during that press conference would be quite a coup, for sure.
Vivendi earning statements announced today hint that Wrath of the Lich King is expected to be released the second half of 2008. This would also fit into dates that we've seen on sites like Amazon and Gamestop.
This is also significant in that it's the first time an official confirmation of a release time frame has come out. And being that this is the data sent to Vivendi investors, it comes with a good bit of clout.
Additionally, the statement tells us that World of Warcraft now has 10.7 million subscribers, up from 10 million at the end of 2007.
The exact paragraph in the statement is after the break. And of course, stay tuned to WoW Insider for all the latest Wrath of the Lich King news.
Over the past week, particularly in the last few days, the crisp Internet air has been abuzz with news from the upcoming expansion, Wrath of the Lich King. Fear you're out of the loop? Here's a quick round-up of all the information being released, along with analysis and opinion.
Don't forget to keep checking back, as this page will be updated as information becomes available:
Dungeons and raids
An analysis on Arthas as a ten-manned event, including its impact on the 25-man raiding structure, as well an exploration of its consistency with the lore.
Did you know that all expansion raids will have a 10-man setting, as well as a 25-man?
Alex has written an excellent overview of the Grizzly Hills, a soon-to-be zone for low to mid-seventies. With old factions reappearing, along with other surprises, it's definitely something to look forward to!
If news of the Dragonblight has intrigued you, you'll be pleased to know that more information has been made available.
While we're brushing up on our lore and learning about new areas and factions, Alex thought it fitting to illuminate the lore behind Azjol-Nerub, as the Nerubians will have their own role in the expansion.
Approval by the European Commission was necessary because Vivendi (the owner of Blizzard and now the buyer of Activision, if you haven't been keeping up with all this) is a French media company, and therefore subject to EU business laws and antitrust concerns. Officials were mulling over the merger because of fears that Vivendi's ownership of Universal Music Group would give Activision Blizzard an unfair advantage in licensing music for games like Guitar Hero.
They finally decided that it's not a threat to the health of the market, and approved the merger. So there it is. It's done. The government can't save you now; Activision Blizzard is your new master. I tremble in terror before the fictional (yet somehow inevitable) Bard class and its l33t Guitar Hero skillz!
In Blizzard's attempts to get rid of gold farmers and hackers, one of their most annoyingly persistent enemies has been the WoWGlider bot, now known as MMOGlider. They've been throwing suits and countersuits at each other for a few years now, but the latest salvo seems to have gone against Blizzard, the Game Activist reports. Blizzard was trying to subpoena Joe Thaler, owner of Lavish Software LLC, maker of programs such as EQPlayNice. While Lavish Software's programs do not appear to be cheat programs on their own, they did make a deal with MDY Industries, maker of MMOGlider, to use the programs within MMOGlider.
According the judge's decision, Blizzard was hoping to obtain all documentation related to the deal, all communication between Thaler and Lavish and MDY and its owner, Michael Donnelly. They also wanted a list of all WoW accounts owned by Thaler and Lavish, as well as the contents of the WTF folders of every installation of WOW used by Thaler and Lavish Entertainment. Unfortunately, the Judge ruled that Blizzard was demanding information that could compromise Lavish's trade secrets and client confidentiality, and that the demand for the information within 9 days did not give Thaler and Lavish enough time to respond an gather information.
It's worth noting that the judge did specifically say that Blizzard could file another subpoena that would be more narrow in scope and allow more time for Lavish and Mr. Thaler to respond, so this is probably not a fatal blow to Blizzard by any means. I personally hope not. I've never had much patience for bots, or people who feel they have a civil right to cheat at games, so I'm rooting for the big bad corporation on this one. What about you?
When Vivendi acquired Activision -- or was it Activision acquiring Vivendi? these business deals confuse me -- to form what the soon-to-be Activision-Blizzard late last year, many players were concerned about how this would affect our beloved MMO. Blizzard assured its players with an FAQ on the forums about the merger stating, in no uncertain terms, that it would not affect Blizzard's games in any way (except to improve them, presumably). Activision CEO Bobby Kotick recently spoke with Next Generation, however, and talked very much like the businessman, discussing possible revenue models for their stable of games. He mentions how Activision-Blizzard must figure out StarCraft's business model for the future, "with in-game advertising and sponsorship" which he says "presents a tremendous opportunity for the future."
He illustrates how StarCraft can actually be "the model for in-game advertising and tournament play", spooking at least one World of Warcraft player, who asks on the forums if WoW could be next. Fortunately, Karune chimes in the same thread assuring StarCraft fans (and by extension, WoW players) that Blizzard has "no plans to have in-game advertising in StarCraft II." He explains that "Bobby (Kotick) was actually referring to Battle.net, which has always included ads." It's very reassuring, but perhaps such speculation would be avoided if Activision-Blizzard's CEO actually words things a little better.
Two bits of news about soon to-be-Blizzard's-overlords Activision: first, a group of investors are apparently planning to sue Activision about the whole merger thing, apparently saying that Activision didn't do enough to cash in on the deal. They're complaining that in the deal with Vivendi (Blizzard's owners), Activision settled for an "unfavorable minority poisition." The company hasn't responded yet, but if this lawsuit goes forward, we could find out a whole lot more about the exact terms of the deal between the two companies.
And for their own part, Activision is thrilled to be in the business of Warcraft: Activision CEO Bobby Kotick sees MMOs as an "insurmountable product category," and says that if they were competing with WoW, they'd have to toss at least half a billion to a billion dollars into the deal, and even then they wouldn't be guaranteed success. Which means that at this time, in this market, Kotick says that companies entering into the MMO market are basically throwing money away.
Can't say we're surprised that the CEO of the company that now owns WoW says it's unbeatable, but as you know by now, EA and Funcom (Warhammer Online and Age of Conan's publishers, respectively) surely disagree. We should see who's right by the end of the year.
A few days ago we tried to estimate how much Blizzard was making from those 10 million accounts, but now we know for sure: it's actually around $1.2 billion (which is up 58% from 2006). Now, you can probably see that that's only $500 million short of the estimate that we were trying to prove was wrong, but don't forget that the $1.2 billion isn't just subscription fees-- it includes all those sales of Burning Crusade last year at full release price. What Blizzard earns from subscription fees is just part of that total.
Still, a $1.5 billion year for Vivendi (especially when their other games divisions actually dropped by almost 30%) is good news for them. Of course, the question they (and more specifically, Activision Blizzard) have to be wondering about is if the success can continue. If Blizzard can release a new expansion this year and hold off the coming threats in the MMO industry, they'll be looking at even bigger numbers in 2008. But that's a lot to ask-- there's no question Vivendi (and Activision) will come up with huge amounts of profit this year, but growth of this magnitude will be a tough hill to climb.
You don't need to know all of the details, or what this means for Blizzard, to understand and have a laugh. Simply note that Activision is the company that brought out titles such as Guitar Hero and Call of Duty.
I'm a particular fan of this comic, and I'm not exactly sure why. I mean, I do play Horde, and an orc at that; and no one likes to get ganked! The style in which the night elf is depicted, combined with the last frame, had me laughing out loud though.
If you feel you have a particularly solid grasp on the matter, Elizabeth has asked for your predictions on the future of the company. Because I know you can all tell the future, there's no point in keeping it to yourselves.
We've all had a couple of days to mull over the news of the big Activision Vivendi merger announced this weekend. The forums, official and unofficial, have been filled with outcries of concern over what this means for the future of Blizzard and their favorite game, while Blizzard has reassuringly repeated that nothing is really changing. But after all the excitement dies down, the truth is that it's all just words until we see what happens. But today I'm asking for your predictions: where will the new Activision Blizzard be a year from now?
And the answer-- in my analysis-- is, as usual with most mergers: money. The fact is that Activision wants to be the biggest gaming company in the world. They want it all-- consoles, PC games, you name it-- and connecting with Blizzard helps them get a big part of that. World of Warcraft has turned Blizzard from a quality game designer into a videogame powerhouse, and Activision, in reaching for the top, has invited Blizzard on their team.
Blizzard will profit from it as well-- Activision knows how to get games published and marketed (just look at Guitar Hero III, which has done incredibly well for being a game that was not only not made by the original developer, but actually released up against a strong competitormade by the original developer). Blizzard knows how to make great games, and Activision knows how to release them, so both companies obviously think this is the beginning of a beautiful friendship.
The strange timing of this massive announcement aside, details are starting to come to light about what the merger of Activision and Blizzard means to all involved. First, Blizzard has made an official announcement in their forums, followed by a separate post with a FAQ about the merger. The FAQ basically says absolutely nothing will change on the Blizzard side. No layoffs, no managerial changes, no ship date changes. This is no surprise since no one in their right mind is going to mess with the success that is the Blizzard name and the team behind it.
The official press release mentioned in our first post today is a bit dense on the corporate speak, but the interesting parts are:
The new Board of Directors will have 11 seats: 6 of those filled by Vivendi, 2 by Activision and 3 by independent directors from Activision's board.
There will be a live webcast with the management of the two sides tomorrow morning at 8:30am EST and can be viewed at www.vivendi.com and www.activision.com
The BBC site has a very good summary of the merger along with a brief background on both companies. And The New York Times site has a deeper analysis from a business perspective. It points out that Activision is trying hard to compete with EA Games and adding Blizzard will not only put its annual revenue on par with its main competition, but will give it a criticial foothold in the online gaming and Asian gaming markets.
Kudos to our own Art Orneck on the "Activizzard" reference. It sure beat out my "Blizzvision" for cleverness.
Develop magazine got to talk to Thomas Tippl, who is Activision's CFO (we've heard a lot from CEO Bobby Kotick, but never from Tippl before) about the Activision Blizzard merger and how it will affect both companies. Tippl reiterates what we've heard before: that Activision has no plans to tell Blizzard how to do their jobs when they've been doing so well already.
The judge ruling on a dispute related to the 
This past Monday, June 23, The WotLK Information Wiki 
Over the past week, particularly in the last few days, the crisp Internet air has been abuzz with news from the upcoming expansion, 
Two bits of news about 
A few days ago 
So now that 
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