Activision strategy revealed in brand reshuffle

Activision strategy revealed in brand reshuffle

By Rob Crossley

March 31st 2010 at 12:54PM

Publishing kingpin restructures into four key divisions

Activision has realigned its publishing business into four key pillars, the company has confirmed, yet a number of news outlets are suggesting that job cuts have taken place.

In a move that reveals the company’s long-term strategy, Activision has divided itself into four brands based on key IP and business models.

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One of the four new divisions focuses on the lucrative Call Of Duty franchise – now a brand spread to several studios – while another segment is handling the combined IP of Guitar Hero and the Tony Hawk.

The third division is working on licensed properties and the fourth, Blizzard Entertainment, remains untouched.

The Santa Monica-based publisher has also updated its senior management business structure, with Mike Griffith becoming vice chairman, and Thomas Tippl appointed to the newly-created role of chief operating officer.

Doubts have been cast over the nature of the restructure as it was not publicly announced to the press or investors, although Activision may not have finalised its brand change operation before the national press caught wind of the move.

It is alleged that a small number of redundancies have taken place across Activision’s publishing business – a claim which Activision has not formally confirmed.

The fresh cuts, if true, are not expected to be at studio level. Activision is already undergoing a massive studio restructure where hundreds of staff are working their last days and weeks.

Activision has confirmed to Develop that the reshuffle at its US base will result in alterations to the structure of its UK operations, though the exact details remain unclear.

“We are realigning our structure to better reflect our slate and the market opportunities in Europe as well as directing our resources against the largest and most profitable business segments,” a statement from the publisher reads.

“Like any successful business, Activision Publishing consistently works to align its costs with its revenues – this is an ongoing process.”