Alex,
Thanks! Here is another article from Computer Retail Week....
Publisher acquires Raven, rights to key game properties --
Activision moves to reactivate sales
BY: Kristen Kenedy
Santa Monica, Calif.- Activision's latest coup, the acquisition of hot
developer Raven Software, is bringing new notoriety to the entertainment
publisher.
In a market where game publishers disappear as fast as retailers pull weak
titles from their shelves, Activision continues to maintain a presence.
As chief executive officer Bobby Kotick points out:"Our most effective
competitors are five times our size in revenue base."
In recent months, Activision has won the distribution rights for Quake II,
Hexen II and official mission packs for Quake.
In addition, Activision recently acquired the rights to publish titles
based on the Civilization board game. Microprose, with the help of Sid Meier,
previously developed the strategy games Civilization and Civilization II. The
titles have been among the top sellers in the PC game market.
Kotick's plans next year are to continue the company's 40 percent to 50
percent growth in revenues. In particular, he is looking to increase
distribution in Europe, an area where market watchers can anticipate an
acquisition in the future, he said.
But Activision still hasn't cut a clear path to market stardom. A store
manager for a software specialty store said the publisher does not have the kind
of name recognition maintained by competitors such as Electronic Arts.
In fact, the store manager couldn't name any of Activision's titles except
the recent cult hit Interstate 76 and the Quake mission packs. However, he
noted, "having Quake II will bring attention to the company."
On the other hand, a retail buyer for a consumer-electronics chain, places
Activision squarely in line with other top publishers, even though it's
smaller than most of the leading companies.
Activision in 1995 ranked 14th among entertainment software publishers,
based on unit sales, according to figures from researcher PC Data, Reston, Va.
The company held about a 2.5 percent share of the game market, in unit and
dollar sales. By the end of 1996, Activision had jumped to the No. 8 position
and commanded 3.1 percent market share in unit sales and 3.8 percent market
share in dollar sales.
Activision has held on to its No. 8 ranking so far this year, as well as
its 3.1 percent market share in unit sales. For the first six months of 1997,
however, its market share in revenues has dipped to 3.4 percent.
Kotick expects the company's market share to increase after the fall selling
season, when several of its anticipated hits are scheduled to ship.
Key titles to watch for during the holidays are:Hexen II by id and Raven
Software; Dark Reign, a game co-developed with the Australian firm Auran, and
id's Quake II.
Kotick said he has "a high degree of certainty" that all three titles will
ship by the end of the year.
It is a strong lineup for a small company. And it follows Kotick's ongoing
philosophy:Produce a small number of first-rate titles.
Meanwhile, the company is preparing to release another MechWarrior II title.
MechWarrior II is Activision's most successful title to date, with sales of
about 500,000 units in the United States.
But MicroProse, which is likely to continue to exploit its own Civilization
franchise, has two MechWarrior titles set to ship in late 1997 or in 1998. |
