Activision - King of the Mountain?

It seems like Activision has dethroned EA and assumed the title of “king of the game-maker mountain.” This past November, Call of Duty 4: Modern Warfare and Guitar Hero III: Legends of Rock held the #1 and #2 sales positions and Activision actually owned 5 of the top 10 best sellers. Take into account that they’re also associated with World of Warcraft and you’ll begin to understand how they’re dominating gaming from all major fronts (hand held, console, and PC).

EA may also be disappointed to learn (though I’m sure they learned it long before I) that Ubisoft, bolstered by the success of Assassin’s Creed, has increased its company value to about $4.3B USD. Why? Well, according to a Financial Times article, EA purchased a 19.6% stake in the French company three years ago and is rumoured to be interested in a buyout. This recent increase in Ubisoft’s valuation may make it too expensive a target for takeover. Back in late 2006, Ubisoft’s executive director, Alaine Corre, made this comment:

“I think it would be dangerous for a company like Ubisoft to get together too much with a company like EA, because it could kill creativity - and in our industry, I think that’s key.”

It looks like creativity may have been the best defense against an EA takeover. Is that ironic or telling? Afterall, EA has long been criticized of stymieing creativity and producing cookie-cutter games for quick profit. It looks like that strategy may need a little adjustment if they want to reclaim their throne.

It will be interesting to see if games like Warhammer Online: Age of Reckoning and Spore will breathe new creative life into the company.

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