July 1989
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"ozzaa
The history of Activision reminds me of the month of March.
has become a true lion in the industry. Parent company Mediagenic is now financially sound; they've posted eight quar ters of profitability after four years of losses. The company started as a video game developer and has beaten the odds and survived a rapidly changing home entertainment industry (and internal turmoil) that might have destroyed the average software developer. What is the secret of their success? Once

upon a time.

The company came in like a lamb (in September 1979) and
as video game designers at Atari. So naturally, we continued developing video games for the Atari 2600. Atari had the larg est market share for hardware systems at that time. Jermaine: How was the company name selected? Kaplan: Prior to choosing the name Activieion, several others were actually considered. Computervision sounded pretty good, but that title was already taken. The company was finally in
corporated under the name VSYNC, Inc., a hardware signal
term from the VCS (it stands for vertical sync). The founders wanted a name that reflected various forms of art, television,
computers, games, etc. Jim Levy derived the name Activision
The Early Days 1979 to 1983
Larry Kaplan was one of the founders ofActivision Vkieo Games Division. He can give us an inside look at how the com
from a combination of action and vision. Jermaine: Tell me about the creation of the corporate logo. Kaplan: The first Activision logo, displayed on all the com-
pany got off the ground. John Jermaine: What led to
the founding of Activision? Larry Kaplan: hi the late 1970's, after Atari introduced their 2600 home video game
system, the video game market
began building up speed. With
millions of hardware units and game cartridges sold, industry
sales revenues for the year topped the $330 million level. Activision was founded to take advantage of this lucrative market. Activision was founded by
four designersAlan Miller,
David Crane, Bob Whitehead and myselfand Jim Levy, president. The designers were all working at Atari Inc., on Video Computer System (VCS) 2600 games. We decided to form a company to make games for the VCS on our own,
and through a mutual friend
and lawyer, met Jim Levy, who
was then a vice-president at GIvT (a cassette tape company in Sunnyvale, California).
Over the summer of 1979, a business plan was written and
submitted to a venture capital firm, Sutter Hill Ventures. The plan was approved in late Sep tember. All four designers left Atari at that time. together almost every day. David and Alan lived at the same apartment complex and played a lot of tennis together, which is how they met in the first place. The four of us spent a lot of time at local video game arcades and movie theaters. Jermaine: Why was the focus on the Atari 2600? Kaplan: At the time Activision was founded, a great deal of ex citement was focused on the home video game market, which
was beginning a rapid growth curve. Realizing that a large
pony's original video game titles and some of the early com puter entertainment titles, is internally referred to as "the
We were a very close-knit group in those days. We ate lunch
flying V" logo. One of the factors considered in its initial de
sign was that it had to fit in a 32-pixel eight-line space on the
bottom of all game screens. To accomplish this feat, the "T" and "V" in Activision were connected. In 1988, the flying V
logo was reinstated and is now used for all computer entertain
ment titles published by Activision Entertainment and all vid eo games published by Activision Video Games. Jermaine: Was your business originally a "back bedroom" op

eration?

market for multi-function home computer software was still several years away, Activision funded its long-range software plans by entering the growing video game industry. The com pany was founded by a group of programmers who had worked

50 JULY 1989

Kaplan: The first company operationreverse engineering the VCS and building a software development systemwas
accomplished in David Crane's spare bedroom in his Sunny vale apartment.
By the 1980 Winter Consumer Electronics Showthe first trade show attended by Activisionthe company employed eight people. Later that year, the number had grown to 15. By

played it on a television set. The TV was put on a chair outside one of the offices, and employee Christmas gifts were placed
beneath the chair. During the early days, we also had our share of practical jokes. One year the vice-president of human resources became
tronics Show parties. Among the most memorable galas were the 1982 "Rumble in the Jungle," to promote the game Pitfall!, and the 1983 "Decathlon party" to promote, of course, the De
cathlon game. Bruce Jenner, who provided the celebrity en dorsement for the program, made a special guest appearance.
the victim of an April Fool's joke. Several employees moved his
office furnishings into the men's bathroom. Then they dupli cated his office with other rumiture and even replaced his chil
In 1983, we also held the infamous "Barnstorming Parade," to introduce the Barnstorming cartridge to the media. At 6:30
a.m. three busloads of press, trade, Activision employees and
dren's pictures with photos of someone else's kids.
Another time, some crafty individuals lined the floor of the finance controller's office with Dixie cups filled with water. On one of his birthdays, the marketing research manager (respon sible for sales forecasting) received a crystal ball that looked a
friends were taken to the street in front of the Las Vegas Con
vention Center and presented with authentic Barnstorming
jackets, flight scarves and old-fashioned pilots helmets. They
were then greeted by a real bi-plane that taxied down Las Vegas Boulevard carrying none other than Steve Cartwright, Bamstorming's designer. Afterwards, the entire group was treated to a sunrise breakfast at the nearby Desert Inn.
lot like his IBM personal computer. His office was also decorat
ed to look like a fortune teller's den.

COMMODORE MAGAZINE

In 1982, Jim Levy rewarded his hard-working employees by
taking the entire company (along with their spouses or "spouse equivalents") to the island of Maui for four days. It was there that the famed Beach Olympiad was held. The company was divided into teams named for tropical fruits, and events in cluded sand-castle building, canoe racing, hula hooping, and
the lei pass. The gold medal went to the Kumquat team (and I was a member of that team!).
Jermaine: Can you give me some information about Gamestar? Stagnitto: Activision acquired Gamestar in January of 1985. Scott Orr stayed on to head the group, while his people created
a series of popular microcomputer sports games. They include: Star Rank Boxing I and //, GBA iho-on-Two Cliampionship Basketball, Star League Baseball, GFL Championship Foot

ball, Pete Rose Pennant Fever and many others. Scott Orr and
his team of experts are gone, but Gamestar continues to turn
Charlotte also recalled Activision's darkest day. Skeel: No one will ever forget the big layoff on November 10, 1983. As people carried boxes of personal items to their cars,
they were met by local news cameras. One individual com mented to reporters, "There will never be another Activision." It was a very sad day because most of us thought of the com pany as sort of a modern-day Camelot, and here we were leav ing it for the last time. No one will remember that day better than Jim Levy, the president of Activision at the time. It was
out quality sports entertainment software.
The year 1984 saw the release o/'Ghostbusters, Activision's most popular computer game to date. Two years ago, David Crane (a founder ofActivision and tfie program's creator) and
Dick Lekrberg (Activision's uice-president ofproduct acquisi
tion at the time) told me how the project came together. Little did they know it was destined to become the best-selling Activi
sion product of all time.

also his birthday.

Jermaine: Tell me about the development oWhostbusters.
Dick Lehrberg: Ghostbusters appealed to us for several rea
As the video game market faded into oblivion, Activision started on the path to become a major force in the microcom puter software industry. It wasn't all fun and games during that
The Transitional Years: 1984 to 1987
period of the company's history, as Loretta Stagnitto, director of
corporate communications, explains.Icrmaine: In December of 1984, Activision computer games took on a new appearance. Why did this happen? Loretta Stagnitto: In terms of packaging, Activision computer
sons. It was a very popular movie, the subject was original, and the basic story itself provided a number of interesting ele ments for David Crane to work with. Columbia Pictures aLo contributed a great deal to the project. They were very strict
when it came to approving our ideas for the program, but they

worked closely with us throughout the entire project. Once the initial storyboards were completed, the rest of the approvals were fairly routine. There were no last-minute changes in our

game concept.

entertainment products took on a different look to help distin guish the computer games from the video games, thus the "al
bum style" was adopted. In addition, original artwork or pho tography was used for package displays instead of generating
David Crane: Ghostbusters was a strange project. At the time,
I was in the process of creating an animated city-wide adven ture. The player would be able to drive a vehicle, use a map to
artwork that resembled the game screens from the video

games.

Jermaine: Tell me more about what Activision was like during
this period. Stagnitto: When Activision began publishing computer enter tainment titles, the strategy at the time (and prior to the di
plot his way and add equipment to the car to give it special ca pabilities. This program might have evolved into a James Bond-type game if Ghostbusters hadn't come along. Anyway, I had worked on this concept for several months when I took a night off to see Ghostbusters at a local movie the ater. I really enjoyed the film. A day later, I went to work and
ran into one of the people from our acquisition group. He asked me if I'd be interested in doing a Ghostbusters computer game.
versification strategy that led to the acquisition of Gamester and Infocom in 1985 and 1986, respectively) was to create tru ly innovative games. Most of the subsequent titles featured state-of-the-art grapliics and sound, but they lacked depth of gameplayan important element that can determine the suc cess or failure of a product. Games like Web Dimension, Alter Ego and Portal were truly innovative, but the consumer was
more interested in action-oriented, strategy games, and/or fan
I was truly interested in the project, but they wanted it to be completed by the end of August so the game could be released before Christmas. This was May of 1984, which gave me ap proximately ten weeks to develop the program. Normally I couldn't possibly program a game in that amount of time, but

my new untitled creation could be adapted to fit the Ghostbusiers storyline, so I agreed to do the project.
tasy/role-playing titles. In other words, the programs weren't geared to the needs of the average user. Then the company spent a lot of money trying to convince everybody they wanted these types of programs, instead of publishing what the people really wanted. It was a very confusing time in lActivision's] history.
Jermaine: Is it true that Accolade was founded by former
members of the Activision team? Why did thoy leave the com

pany in the first place?

In the weeks that followed, I found myself attending several showings of Ghostbusters. Looking back, I wonder what (he people thought I was doingthere I was seriously studying the movie, taking notes and drawing diagrams. Later in the pro ject, Columbia (under strictest security) provided me a video tape of the film. They also sent a copy of the shooting script and hundreds of slides and stills from the movie. Activision has also produced other games based on popular
movies. In 1986, Aliens (the movie) became the model for Aliens: The Computer Game. Steve Cartwright (the creator of
Stagnitto: In 1984 Alan Miller and Bob Whitehead, successful software designers and co-founders of Activision, thought we should be working on other forms of entertainment software. These individuals finally broke away from the company and did their own thing at their own company. Accolade was found ed in December 1984, and their first product (Hardball!) was
released in July of 1985.

52 JULY 1989

programs like Hacker, Hacker II, and GeeBee Air Rally) devel oped this software classic, and here is how it was done.
Jermaine: What led to the development of Aliens? Steve CartwriRht: Believe it or not, Activision owned the
rights to A liens a year before the movie appeared in theaters. However, the in-house programmers, artists and game design one afternoon, we all left the theater with the same idea: Aliens would be the perfect subject for a computer game. The
next day I brought up the idea and found out that Activision
already owned the rights to that particular property.
around on the floor. These little devils are called "Face Hug-
ers knew nothing about that arrangement. After seeing Aliens
gers." hi short, the owners of the license were concerned about legal technicalities, correct terminology and "good taste" at
this time. We had kept in close contact with Twentieth Cen tury Fox throughout the making of the program, so they knew
al! about the games and really liked the finished product.
Not many people know that the company had an east coast
Jermaine: Tfell me more about how the project began. Cartwright: We planned out the entire program in 15 minutes.

Ryzin, Paul Willson and Kevin Kalkut started the east coast de
design center. Back in 1982, Garry and Dan Kitchen, John Van sign center (based in Glen Rock, New Jersey). I talked with Garry Kitchen to learn the secrets of this lost tribe ofActiuision.
Jermaine: How did you start out?
It was just a matter of analyzing the movie, breaking it down into key scenes, and coming up with a game concept which re
creates each particular situation.
The games were designed to share a common quality. When you participate in an Aliens challenge, your fate is truly in
Garry h il <! in r We joined Activision because they needed de velopers with innovative ideas, and we wanted to keep busy.
your own hands. Each game is a tough little assignment where experience is the best teacher. You can play to win or experi
ment with different ideas, but you can't blame your failure on random events or bad luck. Those factors don't exist. Jermaine: Did Twentieth Century Fox ask you to make many
changes in the final program?
In 1980 my older brother Steve moved to the west coast and , started his own company, Woodsicle Design Associates. Woodgames. Steve also knew a number of people at NASA. So he eventually contacted Activision and negotiated a deal to pro duce Space Shuttle: A Journey Into Space. Space Shuttle was more than just an arcade-style game because the product was designed in concert with NASA. It was an accurate simulation
of a space shuttle mission, containing the orbital mathematics and physics of a real space flight. We still think its the best spaa* shuttle simulation ever done on any machine. Meanwhile, back in New Jersey, we started working on side did a lot of military contracting as well as designing
Cartwright: There were some minor changes alright, but noth
contained direct quotes from the shooting script. I was led to believe that Activision might have to pay for the privilege of
ing we couldn't take care of right away. Twentieth Century Fox
was very concerned about the fact that our transitional scenes
people investigated the situation and said everything was fine. the aliens were killing people. They were actually capturing death). We also had to use the correct terminology for every

using that material in the program. Thank goodness our legal
Another problem concerned the fact that you couldn't say
human beings for later use (which would be the cause of their thing. You couldn't talk about a small alien creature crawling
sure Cooker simulated a chef cooking hamburgers in a fast
Atari video game projects. Keystone Kapers featured a littleman chasing crooks through a department store, while Pres
food restaurant. These early games were humorous and a lot of fun to play, but the video game market was losing ground. So I
started playing around with the Commodore 64.

Continued on puge 71

Activision Celebrates A Memorable Decade get much sleep leading up to the show. It

Continued from puge 5'l

got so bad that Alex said the sprites on
acquired by the former management as part of the diversification strategy and
Jermaine: Why did you develop the De

signers Pencil program?

Kitchen: I wanted to do a baseball game, but Gamestar had recently been acquired by Activision and they already had a
the screen were actually talking to him. When they started laughing at him, it was definitely time to go home. We got the
job done, and the program was well re ceived at the show. Considering every thing that went into it, GameMaker was a bargain at $39.95. Jermaine: What is your relationship with

Activision now?

longer-term plan to become a diversified
publisher of entertainment, creativity and productivity software.I As a low-risk means of extending mar ket share and expanding the product of
baseball game on the market. 1 was also
tired of working on "little man" arcade
ferings, Davis started an affiliated pub
lishers program, where Mediagenic began serving as exclusive sales and distribution
games and wanted to do something totally
different. Shortly after that, I came up
with the idea of drawing a pencil on the screen and writing a little program to
Kilchen: We left Activision in 1986 and started a new company called Imagineering, Inc. Imagineering was set up to be a
agent for smaller independent software
publishers. Hence, the company began of fering entertainment and presentation tool products under the Activision, Gamestar and Infocom brand names. This revised product strategy and other changes resulted in Mediagenic achieving
move it around. Things came together fairly quickly after that. Yes, this was the
beginning of the Designer's Pencil project.
design firm that would work on microcom
puter and video game projects for a num ber of different clients. Absolute Enter
Jermaine: What led to the creation of

GameMaker The Computer Game Design Kit?
Kitchen: That's an interesting story. In 1985, we received a lot of mail from De signer's Penal fans. In some cases, teach
ers were actually using the product to teach their pupils the principles of pro
tainment I a Mediagenic affiliated publish er! was founded a short time later. This la bel is used when we develop something
and publish it ourselves. X-15 Alpha Mis sion was the first product bearing this la bel. Believe it or not, we purchased the program back from Activision and re
two full years of profitability after four years of losses. Tb improve the profitabil
ity and encourage substantial revenue growth, the organization was restructured into two publishing divisionsEntertain ment and Presentation Tools. Tb signify the transition from a year long revitalization program and symbol ize the expanding and diversified product
gramming. However, most of the letters asked the same basic question: Can I ac tually design games with your program?
After reading this same response over and over again, I thought it was time to produce an arcade game development
leased it on the 64 late in 1986. [Editor's Note: Most recently, F-18 Hornet was re
leased under the Absolute Entertainment

label.)

lines, the company created the name Me
diagenic. The new name also helped dis tinguish the company from the Activision
package that everyone could use. Keeping
this in mind, 1 planned out a package con taining five toolsa drawing program, background generator, sprite animator,
The Mediagenii Metamorphosis 1987 to Today
product line, which was restructured to
publish only action, arcade and simula tion-style computer entertainment. Today, all sports simulations are published under
In response to the company's expanding
variety ofproduct offerings, last year Me diagenic. was formed to serve as parent
Pencil but more powerful and specifically
designed for arcade game development. I
music generator and of course, a sound ef fects utility. It would have a programming language similar to that of Designer's
company to all these diverse publishers.
Loretla Stagnitlo was able to bring me up to date on the reason for this new cor/x>rate entity and what's happening at the com pany today. Jermaine: Tell me about the develop ments that led to Activision becoming Mediagenic. Stiignitlo: After the collapse of the video
the Gamestar label, while fantasy/roleplaying and story-telling titles are re
leased as Infocom products. Mediagenic
serves as the parent organization to these numerous publishing entities. [Editor's

program and show it to the world at the
Chicago Consumer Electronics Show. This meant we would have to work on the pro ject until the eleventh hour, so we didn't
eliminated two unprofitable product
linesPersonal Choice and Electric
Dreams. (These lines were established or
ket the company's video game titles for the Nintendo Entertainment System, Sega Master System and Atari 2600 and 7800. Chris Garake heads the Activision

Video Games Division.

COMMODORE MAGAZINE 71
Activision Celebrates A Memorable Decade
Sherry Whiteley (general manager) and
Kelly Flock (product marketing manager)
of Mah-Jongg, was developed by Brodie
Lockard. Brodie worked at Stanford Uni versity, writing educational software for use in classes there. He earned both a
Jermaine: What's going on at the com
have their own storiea to tell. Here are their versions of what is hap/wring at Activision
Entertainment thesi1 days. Jermaine: Tell me what it's like to work at the company today. Sherry Whiteley: I love working for Acti vision Entertainment because it gives me the opportunity to work with seasoned
pany today? Whiteley: One of our product testers has
an interesting hobby. For inspiration, he covers his wall with the most bizarre tab
professionals. These individuals care about producing high-quality products
and provide a people-oriented work envi ronment where everyone is encouraged to participate. But somehow these people re main children at heart. My imagination is constantly running wild around here. Cre
ativity is always appreciated, and fun is a
Bachelor's and Master's degree at Stan ford and while studying there was a mem ber of the varsity gymnastics team, He had an accident while on the team and was rendered a quadraplegic. Shortly after his accident, Brodie became interest ed in the game Mah-Jongg. He saw an op portunity to design and produce a similar
game on his personal computer, which
loid headlines you've ever seen. Two of my

use it as a weapon.

teams to take a course in psychology until
Jermaine: Is it true that Activision has perfected a laser disc game? Whiteley: We recently released the first entertainment CD-ROM title, a graphic adventure game running under Hypercard on the Macintosh computer. The pro
duct was called Manhole. It contains over
50 Mbytes of code and features 30 original songs, many of them recorded at a profes
standards are quickly cancelled or sold off to other publishers.
Flock: The company released its first sim ulation product-rF-14 Tomcat in Febru
ary of this year. In F-14, you get the real
ism found in most flight simulations, but
it's a lot more fun to play. Fun is the key
word here. We conduct studies to deter
Getting the programmer to finish The Last Ninja, was a tough job. One day he decided that he needed a stress reliever. So he hopped in his car, drove to L.A. and spent the day at Disneyland. He didn't tell us about the trip, so we feared the worst when he didn't return our calls. Little did
sional music studio with live musicians.
There was nothing on the market like it, or even close, so people had a hard time
comparing it to other things.
mine what the "fun" and "exciting" ele
ments of a simulation are. Then we con struct a game around these factors, in stead of modeling every aspect of the proj ect after the real thing. The final product contains the best of both worlds. Jermaine: Can you share a few stories about some recent game releases? Whiteley: Ocean Ranger was submitted to us on the 64 by a brand-new development group. The product arrived one day in the mail. Our producers simply could not be
we know he was simply visiting Mickey
Mouse. By the way, Last Ninja 2 for the 64 will be on the market by the time you read this.
Many lengthy conversations went on internally, but we decided if Activision Entertainment was going to be a market leader and innovator, the company had to
take chances when it saw glimpses of the future. Manhole was finally published,
and the story has a happy ending. The product is successful beyond.expectations, and Activision is once again on the cut ting edge of technology. In the future, you may see this game (and similar products) available for other computer systems. Jermaine: Do you have other CD-ROM projects on the drawing board?

I recently heard a title about Chop 'JV
Drop. During the final testing of the pro duct, our people made an unusual discoveiy. The original programmer had added a special feature to the game for the amuse
ment of players who happened to stumble
across it. If you press a certain combina
tion of keys all at the same time, the char
acters in C!u>p TV Drop will drop their pants. However, You really don't notice it
Whiteley: You'll have to wait and see.
Jermiiine: What are your five top-selling entertainment products of all time? Whiteley: Believe it or not, all five of these titles are video games. The market for video games is much larger than for computer games. It's possible to sell more than a million unite of a single title world-
lieve a product of that quality, nearly com
plete, would come by regular mail. We quickly called the developers and worked out a deal to acquire the product. A port to MS DOS commenced shortly afterward. Shanghai, an award-winning puzzle game based on the ancient oriental game

72 JULY 1989

much because the figures keep right on
chopping away at each other. This is a
nice little challenge for the consumer who
wants to try something different, and the graphics are not X-rated.
wide. Pitfall!, River Raid, Laser Blast and Freeway all fit into that category.
The five top-selling Activision computer
games in reverse order are (5) Rampage, (4) The Last Ninja, (3) The Great Ameri can Cross Country Road-Race, (2) Hacker and (1) Ghostbusters.
Mediagenk Affiliated Publishers
Affiliated publisher since August 1987 Products include: Crossbow and F-18 Hornet

Absolute Entertainment

Next: Ghostbusters II
Mark Johnson (an Activision producer)
gave me the details on the sequel to Activision's best-selling computer game ever. Jermaine: How did you obtain the rights to develop another Ghostbusters game?
Mark Johnson: It was the result of our
previous arrangement with Columbia Pic
tures. We knew there was another Ghostbusters movie in the works, so it seemed like a good idea to create a sequel to Ghostbusters [the game]. By the way, it will closely follow the events of the new movie.
tion of the painting, and intends to rule the modern-day world in a truly evii fash ion. The ghosts are his instruments and are somehow tied to a river of green slime that flows beneath the city. This river is gradually growing in size because of "bad vibes," i.e., the New York stereotype of meanness, etc. The Ghostbusters use the Statue of Liberty (a sign of "good") to de feat the ghosts, green s!ime and Vigo. Jermaine: When will the game be re leased?

Affiliated publisher since March 1988

Battle Chess

Interplay Productions
Products include: Neuromancer and

Company-Owned Publishers

Infocom
Jermaine: Where does the story take
place? Johnson: Once again, our heroes are trav
Johnson: The game will hit the market a few months after the movie. Ghostbusters
II (the movie) is scheduled for release on June 16. Incidentally, Ghostbusters II (the game) is currently being developed for the
Products include: Zork Trilogy, Zork Zero, Battletech, Shogun, Quarterstaffand Journey
eling around the streets of New York
CityManhattan to be preciseand vis iting the Statue of Liberty. Jermaine: What is the sequel's storyline?
Commodore 64 and a variety of other sys
Gamester Products include: Pete Rose Pennant Fever, lake Down
Activision Entertainment Products include: Rampage, LastNinja2
Johnson: Everything revolves around the portrait of a wicked medieval ruler named
Vigo the Carpathian. This guy was a real slime ball (no pun intended) in his day. He
is coming back to life, due to the restora
As I wrap things up, I'd like to thank the Mediagenk employees past and present for taking time out of their busy schedules to share the secrets of their company. Ifs been a pleasure to work with all ofyou. gj

and F-14 7bmcat

Activision Video Games
Products include: Stealth, A.TF., Three Stooges, and Bomber Raid
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Filer's Choice

Writer's Choice Planner's Choice

6/86 6*86

IAmTheC-128
The Personal Choice Collection
Hacker II: The Doomsday Papers
Hacker II: The Doomsday Papers Tans Times in Tonetown The Transformers: Battle to Save the Earth GameMaker Designer's Library: Sports GameMaker Designer's Library: Science Fiction Shanghai
7/86 8<B6 8/86 9/86 9/86 986
Iha Times in Tonetown Shanghai
Paper Models: The Christmas Kit

C64 Difek

Amiga C(i1 Disk C64 Diak C64 Disk C64 Disk CS4 Disk C64 Disk Amiga C64 Disk C64 Disk Amiga CG4 Disk CG4 Disk C64 Disk
Labyrinth; The Computer Game
Howard the Duck: Adventure o'l Volcano Island
Aliens: The Computer Game Greeting Card Maktr Term Paper Writer Portal

Postcards

The Last Nmja Gee Bee Air Rally Rampage Ocean Ranger Predator Chop'NDrop F-14 Tomcat

Rampage

11/86 11/86 11/86 11/86 1/87 9/87

8/88 11/8B 11/88 2/89

JULY 1989