vivendi posts

Activision Blizzard has now been fully formed but the newly combined game publisher is 54 percent owned by Vivendi. Today the French company announced its financial results for the first half of 2008 with revenue coming in at €667 million and profits of €92 million for the time period.

World of Warcraft continues to be a huge revenue generator for Vivendi and the Blizzard created MMO will likely continue to be under the new Activision Blizzard reign. Vivendi reported that for the first half of 2008 Blizzard's revenue were €185 million, up 16 percent from the same period a year ago. Subcribers for World of Warcraft increased by 1.8 million for the time period for a worldwide total of 10.9 subscribers.

High Moon Studios, developer of the recent The Bourne Identity title as well as 2005's Darkwatch, has released a significant chunk of its staff, reports Gamasutra. Acquired by Vivendi Games in January 2005, the High Moon layoffs are another part of the fallout from the Activision Blizzard merger which took place last month. According to Gamasutra, the layoffs involve as many as 60 employees, leaving the majority of the studio's 150 employed staff members intact.

Forecast of the layoffs appeared in a statement issued by Activision in late July. Activision stated that "...the company intends to adapt the Vivendi Games' studio operations to better align the studio structure against the new product slate," with Radical Entertainment and High Moon Studios specifically targeted for staff realignment.

Just as you can't make an omelet without breaking some eggs, so too is it impossible to merge two gaming juggernauts without losing a few games -- and studios. News that the recent Activision Blizzard conglomerate will see many Sierra titles become casualties is well known at this point, but should the legendary Sierra studio itself be put out to pasture?

Though the idea may seem blasphemous, it may not be such a bad thing. In fact, EDGE magazine writer Kris Graft thinks it would be better to remember the studio for its memorable contributions to the industry (especially many PC gamers' favorite adventure titles) rather than be thought of as a shadow of its former self.

Such fond memories also seem preferable to Al Lowe, venerable designer of the Leisure Suit Larry series. Lowe feels that the once great development house let Sierra become nothing more than a logo on box fronts. "It was 'Sierra' in name only. They allowed the brand to wither into meaninglessness," lamented Lowe.

The article is a great read and recommended for all Sierra enthusiasts, as well as PC gamers as a collective. From this writer's own perspective, I agree with Lowe. Sierra has long been one of my favorite studios, and I'd rather remember it for some of my favorite gaming memories (King's Quest and Gabriel Knight, I'm lookin' at you!) than a broken, feeble brand that no longer remembers what its name once represented.

Are you ready for yet another financial results news story? Well, we have one for you. This time its for Vivendi as the parent company of Vivendi Games announced its fiscal result for both the first half of 2008 as well as the last quarter that ended on June 30 This is the last time that Vivendi Games will likely be mentioned in a financial press release due to the just completed merger with Activision to form Activision Blizzard.

For the last quarter, Vivendi Games generated €223 million, of which €185 million came from the Blizzard Entertainment division. Revenues were up 17.9 percent overall compared to the same period a year ago. For the first half of 2008, Blizzard generated €378 million in revenue as subscriptions for their World of Warcraft MMO continue to climb, reaching 10.9 million by the end of June. Vivendi now owns 54 percent of the newly merged Activision Blizzard.

Earlier reports suggested that, due to Activision and Vivendi's merger into industry behemoth Activision Blizzard, some staff redundancies would result in more than a few lost jobs. New reports reveal that staff layoffs are coming, and Vivendi's UK branch will bear the brunt of the burden.

GamesIndustry.biz reports that "the majority of the Vivendi team, which oversees the Sierra games label among other things, will face job losses." Some senior team members will be invited to re-apply for new roles within the company. How generous.

Furthermore, a number of upcoming Sierra titles have been under close scrutiny since the Activision Blizzard merger and may not see eventual release dates. Specific details such as which titles might be permanently vaulted have not been revealed.

MCV magazine recently spoke with Activision Blizzard CFO Thomas Tippl on the recent merger between Activision and Vivendi that resulted in the largest gaming conglomerate in existence.

Due to the high number of popular franchises developed by Activision and Blizzard individually, MCV was curious as to which titles might be considered high priority in terms of the new juggernaut's future plans. Not surprisingly, Tippl was quick to herald Guitar Hero, which he stated has "sold more than any video game in the history of the industry," and the continued focus on Call of Duty.

On Blizzard's side of the equation is the ever-popular World of WarCraft, which now boasts more than 11 million worldwide subscribers, making it the leading subscription-based MMO. Coupled with last year's StarCraft II announcement and the more recent unveiling of Diablo III, Tippl didn't have to work hard to convince MCV (or anyone else in the gaming world) that Blizzard's line-up will be as strong as ever through the next several years.

Specifics regarding stock shares were also discussed. When asked if Vivendi's 52 per cent holding classified the merger as more of an acquisition of Activision than a partnership, Tippl discussed the company's recently announced self-tender, " which will last for 20 business days. During that period of time, shareholders who want to sell up can do so at a price of $27.50."

The full interview is available at MCVUK.com.

At a not-so-top-secret stockholders meeting earlier today, Activision received the necessary stockholder approval (over 92 per cent) to officially merge with Vivendi Games. The transaction between Activision and Vivendi will officially close on July 9.

According to the official press release, "Activision and Vivendi Games will combine their businesses through the merger of a newly formed, wholly-owned subsidiary of Activision with and into Vivendi Games. As a result of the merger, Vivendi Games, the parent company of Blizzard Entertainment and Sierra, will become a wholly-owned subsidiary of Activision."

For in-depth information, please view the official press release.

Announced in December 2007, Gamasutra correctly notes that the Activision Blizzard merger is one that has "caused shockwaves throughout the industry that are still being felt now, in mid-2008" -- and it hasn't even happened yet.

In this era of so many mergers and acquisitions in the games industry, the impending Activision Blizzard conglomerate is one that will most likely be "at least on a par in size with Electronic Arts." Beginning with its most basic facts, Gamasutra has composed an in-depth examination of the merger.

In the midst of business jargon concerning stock prices and more, Gamaustra dedicates a section to the topic of most concern to PC gamers: the impact, if any, the merger will have on Blizzard. Thomas H. Buscaglia, video game attorney for Wedbush Morgan and Gamasutra columnist, offers assurances that "You bet they [Blizzard] will maintain a level of autonomy, and I suspect that level will be whatever they want, so long as they keep doing what they have been doing -- bringing in the cash."

Kotaku recently caught up with Michael Gallagher, CEO of the Entertainment Software Association. Given the recent departures of noteworthy studios such as id Software, LucasArts, Activision, and Vivendi, many believe that there is concern over the ESA's future, but Gallagher doesn't think so. "The membership of any association fluctuates over time," Gallagher pointed out. "For example, though it didn't receive much attention by the gamer press, in the past nine months we added four new members-Epic Games, MTV Games, NCSoft, and Codemasters."

Gallagher went on to clarify that each of the departing companies "gave the ESA ample notice. In discussions, they expressed gratitude for our work and continued support for the mission of the ESA. The public comments from all involved reflect that."

Many have speculated that the reason for the collective departure might be related to the increased cost of ESA membership dues. Gallagher explained that originally, "E3 was a revenue-generating entity. As such, approximately 85% of the ESA's operating funds resulted from that event." With the formation of the E3 Media & Business Summit, the ESA board of directors found it necessary to increase membership dues. Gallagher said that "Without getting into specifics, which are private and specific to individual ESA members, each company pays a certain amount based on North American sales."

When asked if the membership dues played a factor in the companies' decision to leave the ESA, Gallagher asserted his belief that the decision was probably "tough ... for those few companies, but I would encourage you to contact them."