Activision's Developer Deal

Activision is so happy with the relationships it has developed with its third-party developers that it has decided to offer funding from its third-party developer relations program to "certain development teams in its Los Angeles-based studio." (Or perhaps it's afraid of a Rick Goodman / John Romero / Chris Roberts pick-a-developer-who-has-struck-out-on-his-own-to-form-his-own-company-scenario.)

Activision says it is "making equity investments in a select number of start-up companies." Those companies include Nihilistic Software, Redline Games, and Aaron Seeler's newly formed Raster Productions.

Activision's third-party business model provides its internal developers with "the opportunity to establish their own firms, which would be supported by Activision Studios' resources and technologies, worldwide publishing and distribution capabilities, and industry expertise."

Robert Kotick, Activision chairman and CEO, said, "We foresaw the current trend of proven talent establishing their own boutique development companies several years ago and began making strategic investments and alliances with a number of new developers. Many of our own talented teams are now ready to expand beyond the internal studio model.

"We are very excited to selectively offer our employees the opportunity to form their own companies and develop exclusive long-term publishing relationships with us," Kotick said. "Activision has become the leading publisher for third-party developers, and our new strategy allows us to insure that the top talent that we've nurtured for the past several years remains in the Activision extended family."

Activision will continue to operate its LA-based studio as well as its Raven Studio operations, located in Madison, Wisconsin.