Update 2: Developer Double Fine has chimed in on the fate of Brutal Legend, stating that the Jack Black-starring action-adventure title "is fine."

Update: Sierra has assured that Ghosbusters "will not be cancelled", but offered no further details on the title or any of the others believed to be on the chopping block.

Original Story: In the wake of the recently completed Activision Blizzard merger, the company has revealed that only five franchises from Vivendi Games' Sierra portfolio will be making the transition to the newly-formed company's publishing operations.

Endangered titles Brutal Legend (Left) and Ghostbusters (Right).

The titles and franchises confirmed to make the leap include Crash Bandicoot, Spyro the Dragon, Ice Age, Radical Entertainment's Prototype and a yet unannounced title. Those remaining titles formerly slated for publishing deals with Vivendi Games, however, could now be without publishers.

"The only [Vivendi] franchises that Activision Publishing will release are based on Crash Bandicoot, Ice Age and Spyro, as well as Prototype and one other game that has not yet been announced," an Activision Blizzard representative told GameSpot. "We are reviewing our options regarding those titles that we will not be publishing."

The remaining Vivendi Games portfolio includes Double Fine's Brutal Legend, Terminal Reality's and Red Fly's Ghostbusters, A2M's Wet, Starbreeze Studios'... Read more

Activision and Blizzard Entertainment parent Vivendi Games announced the completion of their multibillion dollar merger resulting in the creation of Activision Blizzard.

Originally announced in late 2007, the merger was approved by shareholders earlier this week. The new Activision Blizzard corporation is valued at roughly $18.9 billion, marking one of the largest corporate consolidations in the industry's history.

"We are very excited about the opportunity for Activision Blizzard to create a broader entertainment software platform," said Activision Blizzard chairman Rene Penisson. "We are determined to 'think big'!"

According to the terms of the transaction, Vivendi will become a wholly-owned subsidiary of Activision. Through the merger and a $1.7B stock purchase, Vivendi will acquire roughly 358.3 million shares in the new company, amounting to a 52% ownership stake in Activision Blizzard.

Publisher Activision today announced that its merger with Blizzard Entertainment parent company Vivendi Games has been approved by shareholders, and the transaction is expected to officially close tomorrow, July 9.

The new company, dubbed Activision Blizzard, is valued at roughly $18.9B.

As per the terms of the merger, Vivendi Games will become a wholly-owned subsidiary of Activision, and receive approximately 295.3M shares of Activision stock. Vivendi will also purchase nearly 63 million shares of stock at a total value of $1.7B, making Vivendi's ownership stake in the newly created Activision Blizzard around 52%.

Announced late last year, the Activision Blizzard merger is one of the largest corporate consolidations in the history of the gaming industry.

The second expansion pack for Blizzard's so-successful-it-hurts PC MMO World of Warcraft is due out in the second half of 2008, according to studio owner Vivendi.

In financial documents released today, Vivendi twice specified that the Wrath of the Lich King expansion pack would arrive in the second half of 2008. Developer Blizzard had yet to provide any sort of release estimate.

Vivendi further revealed that, as of March 31, 2008, World of Warcraft's subscriber base had grown to 10.7 million since it hit the 10 million mark in January.

For more on Lich King, check out the latest details as well as our hands-on preview and a look at the new Death Knight class.

Soon to be merged publishers Activision and Vivendi will not be attending this year's E3 Media and Business Summit and have withdrawn from the Entertainment Software Association, Kotaku reports.

Moreover, four other companies—id Software, NCSoft, Codemasters, and Her Entertainment—have also decided not to attend this year's E3, which is organized by the ESA, a group dedicated to the business and public affairs needs of game developers and publishers.

Citing anonymous industry sources, Kotaku claims that the withdrawal of the six publishers from E3 was partially due to developer displeasure with ESA president Mike Gallagher. While in the office, Gallagher oversaw the shutdown of ESA's New York City office and a reduction in the organization's lobbying efforts.

Publisher NCSoft said the withdrawal was due to their current development cycle of their games and was not meant to reflect on the ESA or its leadership. Activision, meanwhile, chalked up its departure from the ESA up to "business reasons."

Several of the developers are holding their own events to showcase upcoming products, with Activision putting on a gamers day the week of E3 and id Software's QuakeCon in August.

21st century warrior-poet 50 Cent is set to star in the newly unveiled 50 Cent: Blood on the Sand by Vivendi Games for the PlayStation 3 and Xbox 360, MTV reports.

A follow-up to Genuine Games' commercially successful—and critically maligned—2006 release 50 Cent: Bulletproof, Blood on the Sand is an entirely new game, hauling Fitty to thrilling, exotic vistas where he must battle international gangsters and, presumably, rap.

"I think people will realize right away where our focus for the sequel is [when the game is released]," Vivendi Games producer Aaron Blean said. "We've emphasized the gameplay quality [more] than anything this time around."

The game is said to borrow several gameplay concepts from Epic Games' Gears of War (X360), such as the addition of a second character controlled by a friend or computer AI. Blood on the Sand is also being built with Epic's ... Read more

New figures released in Activision's fiscal third quarter report reveals just how much cash the publisher raked in during the holiday season, as well as new details on its upcoming merger with Vivendi Games.

Activision's report states that net revenue for the third quarter clocked in at a record $1.48 billion, up 80% over figures of $824 million in 2007's holiday season. The company also raised its 2008 fiscal year net revenue outlook from $2.45 billion to $2.65 billion, driven by the industry-wide surge in sales figures and the success of Infinity Ward's Call of Duty 4: Modern Warfare.

The company also noted that its merger with Vivendi is proceeding as planned, and is currently waiting on clearance from several regulatory commissions and other protocol before the deal can be sealed. Activision anticipates the transaction to be closed in the first half of 2008.

In a conference call earlier today, Activision confirmed that it is planning on new entries in the Guitar Hero, Call of Duty and Marvel: Ultimate Alliance series, as well as a reworking of the long-running Tony Hawk series.

Ever wonder what those record World of Warcraft subscription numbers translate to? Over a billion dollars in revenue, according to a Vivendi financial statement released today.

Vivendi subsidiary Blizzard Entertainment posted revenues of $814 million euros (US $1.2B) last year, up 58 percent over 2006.

The numbers are attributed to the first quarter release of the company's first MMO expansion, World of Warcraft: The Burning Crusade, in addition to an all-time high of 10 million worldwide Warcraft subscribers.

In comparison, other Vivendi companies, including Sierra Entertainment, Sierra Online, and Vivendi Games Mobile, only brought in a total of $204 million euros (US $301M) in revenue.

Blizzard could see the release of two titles this year, as both the second World of Warcraft expansion Wrath of the Lich King and its anticipated StarCraft sequel are readied for publishing.

Blizzard Entertainment's unavoidable MMORPG sensation World of Warcraft (PC) now sports over 10 million active subscribers, the company has announced. Of those, about 2.5 million are located in North America, 2 million in Europe, and 5.5 million in Asia.

Released in November 2004, World of Warcraft has since spawned the massively successful Burning Crusade expansion pack, with another, titled Wrath of the Lich King, on the way. The company regularly updates the game with new technology and gameplay tweaks via regular patches, the latest of which was released today.

Formerly a subsidiary of Vivendi Games, Blizzard was a major factor in the merger of Vivendi Games and Activision, with the resulting entity known as Activision Blizzard. At the time, Blizzard CEO and co-founder Mike Morhaime (pictured above) noted his belief that Vivendi shareholders never gave the studio "proper credit" and... Read more

In an announcement today, publisher Activision stated it holds the number one home console and handheld video game publisher in the United States from January to November 2007. The company bases its claims on figures from tracking firm NPD, which recently released its latest report.

Activision claims overall market share of 16.8% for that period, a massive year-over-year increase of 7.9%. Meanwhile, chief rival Electronic Arts' market share has waned somewhat in recent years, and its stock prices have grown at a slower rate than Activision's--though EA CEO John Riccitiello recently stated in a conference call that his company will hold 20% market share in North America and Europe during the third and fourth quarters.

Much of Activision's success is due to the astronomical success of the Harmonix-created, now Neversoft-developed, Guitar Hero franchise. Guitar Hero III: Legends of Rock proved to be the highest-earning title across all platforms; to some extent, the per-unit revenue on Guitar Hero games is increased due to the available packed-in hardware. Another Activision-published title, Infinity Ward's Call of Duty 4: Modern Warfare, apparently came in at the number two earnings slot. Meanwhile, the Guitar Hero franchise as a whole is said to be the highest-selling franchise of the year.

Today's announcement is likely to be particularly worrying to EA, since the performance it reports precedes the epic Activision/Vivendi merger that will result in megalithic Activision Blizzard. That newly-formed company is expected to top the industry in total revenues.

Blizzard Entertainment co-founder, president and CEO Mike Morhaime (pictured left) is the latest addition to the Academy of Interactive Arts & Sciences' Hall of Fame, the academy announced today.

Morhaime marks the eleventh inductee into the Hall of Fame, joining renowned industry figures such as Sid Meier, Will Wright, Shigeru Miyamoto, Richard Garriott, Peter Molyneux, Trip Hawkins, and Yu Suzuki.

"This is a great honor, and I'm proud to receive it," said Morhaime. "The success that Blizzard Entertainment has had over the years would not have been possible without the enthusiasm and support of players around the world, and the passion and dedication of our employees, so I thank all of them for contributing to this achievement."

Though Morhaime has contributed to beloved Blizzard franchises--including Warcraft, StarCraft, and Diablo--it is the company's work with its ludicrously... Read more

Here's a quick summary of all this week's feature content, followed by some of the more prominent news items, in reverse chronological order.

Features:

• The Shacknews Opinion Section
  Shacknews' guest commentators give their expert opinion on the state of the industry.
• Turok Multiplayer Hands-On Preview
  I checked out the multiplayer mode in Propaganda's reimagined Turok (PC, PS3, X360). It had facial stabbing.
• Draglade NDS Review
  The Shack's own Chris Faylor reviews Banpresto/Dimp's rhythm-based fighting game. It's weird.
• Dark Sector Impressions
  Shacknews editor-in-chief Chris Remo takes a new look at Digital Extremes' ambitious third-person action title, Dark Sector (PS3, X360).
• Replay Couch 7: Lit Fuse
  Nick Breckon invites you to join him once again for another installment of Replay Couch--the greatest collction of gaming videos on the Internet.
• Omega Five Hands-On Preview
  I took Natsume's throwback horizontal shoot-em-up Omega Five (X360) for a spin. You can play as a samurai (with his magic dog).
• Ninja Reflex First Impressions
  Chris Remo took a first look at Sanzaru's reaction-based party game, Ninja Reflex (Wii, NDS).
• GripShift (X360) Hands-on Preview
  I checked out the newest and best version of Sidhe Interactive's GripShift (PS3, PSP, X360), coming soon to Xbox Live.
• Pirates of the Burning Sea Impressions
  Cap'n Nicholas Breckenbeard took a stab at Flying Lab's pirate-themed MMO, Pirates of the Burning Sea (PC).

News posts:

• Activision and Blizzard Owner Vivendi Games Merge
• Acclaimed Blogging Organization Shacknews, Ltd. Launches First Official Blog
• MS Restricting Access of Free Xbox Live Content
• Microsoft Intentionally Sabotaging HD DVD and Blu-ray, Claims Director
• Rock Band PS3 Patch Adds Guitar Hero III Controller Support
• GameSpot Details Gerstmann Situation; Claims Termination 'Unrelated' to Advertiser Pressure
• EVE Online Update Cripples Windows XP, Developers Urge Caution
• FASA Founder Regains Rights to MechWarrior, Shadowrun, Crimson Skies
• Guitar Hero 3 Wii Mono Sound to be Remedied with Free Remastered Discs

Speaking on the merger between Activision and Vivendi Games, Vivendi CEO Jean-Bernard Levy has labeled subsidiary Blizzard Entertainment as the "crown jewel of the industry."

The company formed by the merger, Activision Blizzard, is the "largest and most profitable multi-platform publisher in the world" and its creation "fulfills the promise of digital media convergence," said Levy. Vivendi will hold a 52% majority stake in Activision Blizzard, and stated its intent to increase that figure to 68% in the days following merger's completion.

Repeatedly emphasized in a conference call was the importance of World of Warcraft developer Blizzard in the new company. According to Levy, the studio "has yet to fulfill its full potential."

Warcraft, StarCraft, and Diablo creator Blizzard is responsible for the "most powerful brands in all of entertainment," noted Activision CEO Bobby Kotick. "It is a business we and many of our competitors found extremely difficult to duplicate without risking hundreds of millions of dollars. Even then, we were unlikely to achieve success."

"I think this is an opportunity to unlock the value that is hidden inside Blizzard," said Blizzard CEO and president Mike Morhaime. He also noted his belief that Vivendi shareholders never gave the studio "proper credit" for its efforts.

"We currently don't have any plans right now on the console-side. Blizzard's focus is on the PC-side," noted Morhaime. "If we were to release anything on the... Read more

Update: Blizzard has posted an FAQ on its official site stating that neither its games, policies, not development process will be affected by the merger.

Original story: In a surprising and wholly unexpected Sunday announcement, Blizzard Entertainment owner Vivendi Games announced that it will be merging its assets and studios with those of Activision. In all, the deal is valued at $18.9 billion.

Once the merger is complete, Activision will be known as Activision Blizzard, with publishing label Vivendi Games operating as a wholly owned subsidiary. The new company is said to have "the highest operating margins of any major third-party video game publisher," with an estimated $3.8 billion in "pro forma combined calendar 2007 revenues."

Former Vivendi Games parent company Vivendi will hold a majority stake, approximately 52%, of Activision Blizzard. Vivendi-designated representatives will also occupy a majority of the new company's board of directors. The board will consist of 11 members: six appointed by Vivendi, two from Activision, and three independent directors who currently serve on Activsion's board.

"Blizzard's industry-leading PC games business...is an exceptional fit for Activision's highly profitable console games business," said Blizzard president and CEO Mike Morhaime.

Blizzard is best known for a number of widely successful PC titles, including the subscription-based massively multiplayer online sensation... Read more

Update: A fluffy and downright delicious screenshot of the Terminal Reality-developed game (PC, PS3, X360) has surfaced, featuring burning marshmallow goodness.

Original Story: Additional information on the Ghostbusters game revealed yesterday has been uncovered, detailing the title's developers, publisher, tentative release date, and voice acting talent.

Terminal Reality will be handling the PC, PlayStation 3 and Xbox 360 versions, while Red Fly Studio has been tasked with the PlayStation 2, Wii, and DS iterations, reports Variety. Terminal Reality has recently been responsible for the vampire-filled BloodRayne series and Aeon Flux (PS2, Xbox). Founded by ex-Terminal Reality and EA staff, Red Fly Studio is also working on Mushroom Men (Wii, DS), its first announced title.

Though developer ZootFly created and publicized a well-received Ghostbusters game prototype earlier this year, it will not be involved with the game's development due to licensing issues. It is instead working on TimeO, a ghost-hunting title that shares several similarities to the Ghostbusters brand.

"I am sure the [Ghostbusters] game will kick ass as it's in the hands of an excellent developer and published by an excellent publisher," ZootFly CEO Bostjan ... Read more

Xbox 360's Xbox Live Arcade was once billed as a utopia for independent developers, where smaller studios could easily develop and cheaply distribute new titles. That may be changing as the "dreaded realities of business models" set in, Frozen Codebase design director Norb Rozek tells Shacknews.

"Uh," Rozek responded when asked if he thought it odd Microsoft recommended a publisher to the studio, whose upcoming Arcade game Screwjumper is published by THQ. "I think Xbox Live Arcade has gotten to the point where the dreaded realities of business models are setting in. The wild wild west period is over."

Green Bay-based independent developer Frozen Codebase began developing its debut game Screwjumper for Arcade in 2006. The company originally pitched the game directly to Microsoft but was recommended to sign with a publisher rather than go straight to the service.

"[Being told to find a publisher] doesn't strike us as weird," Rozek continued, "but things aren't quite as 'yee-haw, kick down the doors, let's going in with our guns blazing' as you would like to hope. But what the hell, that's just the way things are, man."

Under conditions of anonymity, developers from other studios have... Read more

Industry print publication Game Developer has released its 2007 list of Top 20 Publishers in video games, and the top slot has changed for the first time in the history of the annual feature, with third-party industry heavyweight Electronic Arts ceding the #1 crown to first-party manufacturer Nintendo. The title is the latest in a seemingly unending string of good news for the Kyoto-based hardware giant, which recently saw its stock hit a record high.

EA moved down to #2, with Activision coming in at #3, Ubisoft moving up to #4, and THQ rounding out the top five. Take-Two Interactive and Sega of America took the next two slots. As far as the other first-party publishers, Sony Computer Entertainment came in at #8, one slot above Microsoft Game Studios. Fans of niche Japanese gaming will be pleased to know that Atlus has joined the Top 20 for the first time at #18, while ailing Atari has dropped off.

Game Developer publisher CMP Game Group compiled its list by considering detailed responses from over 300 members of the game publishing community, as well as sales and review data, release portfolios, and employee pay.

A full list of the Top 20 Publishers follows. The full 100-page report is available for purchase from Game Developer Research, with a summary in the October 2007 issue of Game Developer. ... Read more

Following last night's announcement of the PlayStation 3's rumbling DualShock 3 controller--which arrives in Japan this fall, then North America and Europe next spring--SCEA has issued a lengthy list of all current and upcoming titles that will support vibration functionality in North America and Europe.

Particularly noteworthy games on the list include Kojima Productions' Metal Gear Solid 4, id Software's Rage, Epic Game's Unreal Tournament 3, Insomniac Games' Ratchet & Clank Future: Tools of Destruction, Sony Liverpool's WipEout Wipeout HD, Capcom's Resident Evil 5, Monolith's Condemned 2: Bloodshot, and Ubisoft Montreal's Assassin's Creed.

Already-released titles such as Evolution Studios' MotorStorm, Insomniac Games' Resistance: Fall of Man, Housemarque's Super Stardust HD, Ninja Theory's Heavenly Sword, and Incognito's Warhawk will be updated with rumble support through online patches. Those that will receive rumble functionality in this manner are marked with an asterisk (*) on the following list:... Read more

Bringing back the idea of a single phone-based gaming platform in a not-so-clam-shaped form, Nokia today announced the N-Gage application, a full-featured mobile gaming service reminiscent of Xbox Live.

Each N-Gage user will have a unique profile, including a friends list, reputation rating, and points tracker. If this sounds familiar, you're not alone--even the basic design is strikingly similar to an Xbox Live Gamertag.

Users can compete online at the N-Gage Arena, track their achievements, manage their games, access global rankings, and download free trials. The application will be available for download on the N-Gage.com website starting this November, with a handful of Nokia phones supported initially. Luckily no cartridges will be involved, so removing your phone's battery pack will not be a requisite for gaming.

Electronic Arts is onboard, with games like The Sims 2 Pets and FIFA 08 lined up for the launch in November. Other publishers with ports include Ubisoft, Capcom and Vivendi. Titles will run up to 10 euros ($14) and can be rented for varying lengths of time.

A now-removed news post on Norwegian gaming site Gamer.no earlier this week claimed that Double Fine Productions' unannounced in-development game would be unveiled at the upcoming Games Convention in Leipzig, Germany. Last year, Vivendi Games announced a deal with the Psychonauts developer to publish a game for unspecified systems.

Shacknews contacted Double Fine founder Tim Schafer (Full Throttle, Grim Fandango), who flatly denied the rumor. Schafer is delivering a keynote address at the Games Convention Developers Conference, where the game was alleged to be announced.

"No, we are absolutely not announcing at Leipzig," said Schafer in a phone conversation. Schafer characterized the Gamer.no report, which claimed the heavy metal-centric game is entitled "Brutal Legend" and features Jack Black, as containing some accurate information and other inaccurate claims.

Update: Shacknews has received further confirmation of Schafer's statements from a Vivendi representative.