The $19 billion convergence of the two video game industry power-houses will culminate with the creation of a new gaming entity known as Activision Blizzard. Activision is best known for its smash hit Guitar Hero while Vivendi's flagship studio Blizzard, is best known for its online game Warcraft which boasts more than 10 million paid subscribers.
The combination of console giant Activision and online leader Vivendi represents the throwing down of the gaming gauntlet, if you will, to challenge the dominance of Electronic Arts, parent company for games like Sims, Medal of Honor, Madden NFL and the FIFA soccer series. The merger will also check the recent popularity of Nintendo's Wii system. The industry, in general, has benefited across the board in the last seven months despite the recent downturn in other entertainment sectors.
Jean-Bernard Levy, CEO of parent company Vivendi, expects to opportunity as he expects the prices on consoles to continue to fall for both Microsoft's Xbox 360 and Sony's PlayStation 3 as consumers tightening belts and opt to stay inside and play video games.
Proving that when the going gets tough, the tough stay home.