E3 06: Activision buys RedOctane

Publisher picks up Guitar Hero developer, hints at bringing the series online and to other platforms.

LOS ANGELES--Activision today announced that it will acquire RedOctane, publisher of last year's PlayStation 2 surprise hit Guitar Hero. The publisher said that the acquisition will give it "an early leadership position in music-based gaming, which the company expects to be one of the fastest growing genres in the coming years."

While details on new Guitar Hero projects weren't given, Activision director and strategic adviser Ron Doornik's explanation for what the publisher can get out of RedOctane leaves little to the imagination.

"The success we are seeing today is a strong indicator that Guitar Hero and the many potential extensions, new platform exploitations and international versions appear to be somewhat transition proof, as consumers are responding to this product on current-generation platforms in a manner that defies traditional late-cycle behavior," Doornik said. "We think the online capabilities of the next-generation platforms offer new and well differentiated opportunities to create additional revenues from downloadable music, which today represents one of the most popular downloadable content categories."

As part of the deal, RedOctane management and key employees will be signing long-term contracts with Activision. Financial terms were not disclosed. Activision expects to have the deal closed sometime during its current fiscal quarter (which runs through June), but doesn't expect the move to have a material impact on its earnings for the full fiscal year.

37 Comments

  • jakeboudville

    Posted Aug 25, 2006 12:47 am PT

    interesting.....

  • the_dark_side

    Posted May 29, 2006 10:37 pm PT

    Oh great, there goes the GH series...
    Almost all of the Activison games suck on graphics, gameplay, blah blah blah
    dammit dammit dammit
    they better not mess up GH2

  • Flimsyfishy

    Posted May 16, 2006 10:16 am PT

    you do know that with activision buying redoctane, the people who made redoctane get a lot of cash... with that being said, i believe they will still make perhiperals, but they will more than likely stick with the guitar hero series, because the first one was such a huge hit. hopefully they will have versions for the other 2 console companies out there.

  • djHaQ

    Posted May 11, 2006 3:53 pm PT

    So... Guitar Hero II will have... better graphics?

  • lvlUNE3B

    Posted May 10, 2006 7:35 pm PT

    Activision thinks before appearing in media

  • KiLLer_ba

    Posted May 10, 2006 1:32 am PT

    It'll be cool if they take the GH series to next gen consoles

  • saltylovesF

    Posted May 10, 2006 12:16 am PT

    This is great! I want wireless guitars and dowloadable content!

  • RazMasters

    Posted May 9, 2006 11:13 pm PT

    Damn. I'm with those who are depressed about this. How very "rock 'n' roll" of RedOctane to sell out to a company like Activision, who's all about the in-game promotions and general crap. Outside of "Tony Hawk", which is great (but not original), what do they have? "True Crime: New York City"? Yeah. That's... that's pretty awesome.

    RedOctane started as an independent group of gamers making peripherals for fellow gamers. Their stuff was quality, the work of people truly into their craft. "Guitar Hero" was a successful venture... one that didn't put them in danger of going under, but quite the opposite. It was a masterpiece. Inspiration for all the independent video game developers with genuine talent who hope to, someday, hit it big. And now this?

    Why, RedOctane? Why? Did the promise of security and funding make you forget your own mottos? Is that what it was? The same thing that, ironically, made so many rock stars sell out to big labels and completely change their music?

    Well, as far as indie developers are concerned, at least there's still Xbox Live Arcade...

  • NeoJedi

    Posted May 9, 2006 7:52 pm PT

    Ah... well Activision made a brilliant move there.

  • Devilwillcry

    Posted May 9, 2006 6:33 pm PT

    lets hope the third game is a PS3 exclusive

  • jibbityhibbity

    Posted May 9, 2006 2:34 pm PT

    Drum Hero for the Wii would be cool. Remember the original demonstration video for the controller and the guy using two of them to play drums?

  • SamQur

    Posted May 9, 2006 1:57 pm PT

    Woah! This ought to be good!

  • slow-pc

    Posted May 9, 2006 11:20 am PT

    Nice , since red octane will continue to design the series and activision will help move it out there... heres hoping for some cross system GH

  • anamnawshad

    Posted May 9, 2006 10:55 am PT

    Cool! Now we'll have one for 360 and wiiiiiiiiii

  • foofightersrule

    Posted May 9, 2006 10:22 am PT

    Well I'm just hoping they dont ruin it, because guitar hero was an amazing game

  • Jimbokundesu

    Posted May 9, 2006 9:56 am PT

    are there ANY small, indepenent developers any more?

    and what's going to happen to their peripherals business after this?

  • cobracomander13

    Posted May 9, 2006 9:44 am PT

    Hmmmm.... sounds like none of you actuly played guitar hero, the game isn't about graphics and such, so getting excited over a next gen version is kinda silly, i'm a little sad, red octain has been the leader in bad ass third party parifrils (sp?) for music games, and made two of the best rythem based games ever, in the groove and guitar hero (well harmonix made it but you know what i mean) but now it is getting sucked in to activision. i hate game snobs, and i know i kinda sound like one right now but still. i liked my free little company.

  • soul_motor

    Posted May 9, 2006 9:35 am PT

    Maybe I could use my real guitar, an eye toy type peripheral, and my Wii!!

  • starfoxmcleoud

    Posted May 9, 2006 9:35 am PT

    noooooooooooooo!!!!!!!!!!!! If Activison brings them down i'm gonna shoot myself in the head. Does this mean that future Ignition dance mats are going to have some crappy Activison stuff on it?

  • TimT

    Posted May 9, 2006 9:33 am PT

    I want Guitar Hero X360. POINTS!!!!

  • trifecta_basic

    Posted May 9, 2006 9:32 am PT

    they'll ruin the series like Tony Hawk. It would never work online due to lag.

  • xbx4ever

    Posted May 9, 2006 9:28 am PT

    I would love to see it go multi-platform, I hate third party titles that are exclusives, I'm talking to you Metal Gear!

  • Jackov

    Posted May 9, 2006 9:13 am PT

    Holy crap! Activision is on a roll. First, a major franchise. Now, an innovative developer.

  • bryehngeocef

    Posted May 9, 2006 8:52 am PT

    awesome! so glad it wasn't sony that bought them

  • blackIceJoe

    Posted May 9, 2006 8:49 am PT

    Good news

  • Death1234567890

    Posted May 9, 2006 8:48 am PT

    If activision owns them and they will make games for the Wii then.......

  • Donkeljohn

    Posted May 9, 2006 8:44 am PT

    Unbelievable

  • njsykora

    Posted May 9, 2006 8:44 am PT

    Hopefully this'll mean the song list gets a bit more diverse.

  • akilshohen

    Posted May 9, 2006 8:31 am PT

    according to a e-mail some people are getting from red octane, it's coming to 360.

  • savagegr

    Posted May 9, 2006 8:26 am PT

    is great that they will bring that game to the others platform. is really good. rock and roll baby!

  • soulessjay

    Posted May 9, 2006 8:26 am PT

    cool

  • kcarlson1130

    Posted May 9, 2006 8:25 am PT

    now that activsion has it. i think i could hit all the systems.

  • DELTAsnake

    Posted May 9, 2006 8:23 am PT

    Great, I would love to have a wireless guitar, playing it on my 360, in 5.1 surround.

  • mkeelahi

    Posted May 9, 2006 8:22 am PT

    That means more games from Activision. Weeeeeeeee

  • faridmon

    Posted May 9, 2006 8:20 am PT

    [This message was deleted at the request of a moderator or administrator]

  • faridmon

    Posted May 9, 2006 8:19 am PT

    first time to be the first, is activision buying anything that sells well, but i guess it will be great if they bring this game to nintendo wii.
    ROCK ON.

  • jcloverboy

    Posted May 9, 2006 8:19 am PT

    cool - heard so many great things about the game. Would love to see an Xbox 360 or PS3 version.

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