Tuesday, March 30, 2010

Activision quietly restructures senior management

An article from the LA Times reports that Activision Blizzard Inc. has quietly made some internal changes to senior management and internal organization. The company has apparently split itself into four units, one focused on the military game Call of Duty, another handling internally owned properties like Guitar Hero and the Tony Hawk series, and a third handling licensed properties.

Why these changes weren't relayed to investors or the press is still unknown, but it's likely due to the fact that they could be interpreted as a sign of weakness. Activision has seen flagging sales for two of its former cash-cow franchises, Tony Hawk and Guitar Hero, and a recent very public scuffle with Call of Duty creators Jason West and Vince Zampanella following their ejection from their positions as heads of Activision's Infinity Ward studio painted the studio in a negative light with gamers. This kind of restructuring could point to turmoil within the company, an image that an industry juggernaut like Activision would want to avoid.

So, what do these changes mean for Blizzard, and for World of Warcraft? Apparently nothing, from what can be gathered -- this is Activision's first major change since they merged with Vivendi in 2008 to create Activision Blizzard. While the new departments are interesting developments, Activision states that the fourth unit, Blizzard Entertainment, remains an independent unit, and as such, these changes don't really affect them directly.

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