[Farid]

News post from Bizarre's community website:

Hello from Bizarre Creations! You may remember us as one of the largest independent developers left in the UK, well-known for both the Project Gotham Racing and Geometry Wars series. We've just finished up on PGR4, and we're putting the final touches onto The Club as we speak. We've got a couple of announcements to make, so pull up a chair and listen closely...

It's not easy being independent. Signing new games is tough, and bringing new IPs to market as an indie (like we're doing with The Club) is one of the most challenging things our company has ever faced. As I'm sure you can imagine, the most dangerous time for any independent is the period in between projects (or more precisely in between publishers).

Our management team have been preparing for the future for some time now. We've finally found a solution which allows us to not only stay as secure and profitable as we already are as a company, but also to continue to create kickass games in exactly the same way as we're doing now.

The perfect solution for us is to join the ranks of Activision, alongside their other talented studios. It's a pretty incredible chance for Bizarre to improve ourselves and make the most of all the fantastic new opportunities this opens up. Also, given the excellent support Activision offer this can mean only one thing: better games.

This is fundamentally a different deal than some you've seen around the industry recently. Bizarre isn't a developer in financial trouble, and we're certainly not looking to be "saved" by a bigger corporation. We're a dev looking to take our games to the next level, and make the absolute best products we can possibly make. Likewise, Activision is not in the business of "buying out" struggling developers either.

As you can imagine then, Bizarre are very happy with this move. Here's the lowdown:

Bizarre Creations continues to exist as is. We won't become Activision Liverpool or anything like that.
We will have absolutely no redundancies.
All of our teams continue to exist exactly how they are at the moment. Amax team (PGR4) and Shitstorm team (The Club) will move onto new games, whilst our Shared Technology team will use this opportunity to take our experience and tech to new levels and new formats.
The Activision way of running things is "hands off". Bizarre continue to have creative control over what we do, we still run the studio how we see fit, and we still get to run our own web site and do all sorts of fun community things!
Let's talk games then... that's why we're all here after all. Well, we're no longer tied to just one platform for starters. Our future titles can be on whatever we please - we are a truly multiplatform studio now. Of course that doesn't mean that we'll be forced to make a port of every game to every console in existence... we simply have that option available to us.

Both of our two main game teams are about to start work on two new AAA titles for Activision. One will be a racing game, and the other a character game. Of course we'll make some more detailed announcements in the future, but be prepared for something big and exciting!

What about the now? Firstly, Geometry Wars will remain unaffected; we'll continue to expand and advance the series just as we were going to do before. The Club will still be released with SEGA, Geometry Wars Galaxies will still be released with Sierra, and PGR4 will continue to be supported after its launch in October. No massive changes here then...

So that's pretty much the idea behind it. Bizarre are happy because it means we're completely safe as a company, we all get to stay exactly the same, and we now have the opportunity to stretch our legs with some brand new game concepts. This is going to be fun...

The press release:

Activision Enters $1.4 Billion Racing Genre Market, Representing More than 10% of Worldwide Video Game Market

Santa Monica, CA -- September 26, 2007 -- Activision, Inc. (Nasdaq: ATVI) today announced that it has acquired U.K.-based video game developer Bizarre Creations, one of the world's premier video game developers and a leader in the racing category, a $1.4 billion market that is the fourth most popular videogame genre and represents more than 10% of the total video game market worldwide.

This acquisition represents the latest step in Activision's ongoing strategy to enter new genres. Last year, Activision entered the music rhythm genre through its acquisition of RedOctane's Guitar Hero franchise, which is one of the fastest growing franchises in the video game industry.

With more than 10 years' experience in the racing genre, Bizarre Creations is the developer of the innovative multi-million unit franchise Project Gotham Racing, a critically-acclaimed series for the Xbox(r) and Xbox 360(r). The Project Gotham Racing franchise currently has an average game rating of 89%, according to GameRankings.com and has sold more than 4.5 million units in North America and Europe, according to The NPD Group, Charttrack and Gfk.
Bizarre Creations is currently finishing development on the highly-anticipated third-person action game, The Club, for SEGA, which is due to be released early 2008. They are also the creators of the top-selling arcade game series Geometry Wars on Xbox Live Arcade(r).

Bizarre Creations and its games have won numerous industry awards including: Best Racing Game for Project Gotham Racing 2 from the prestigious British Academy of Film and Television Arts (BAFTA); the Industry Grand Prix Award from Develop; MCV's UK Development Team 2006 award; Best Racing/Driving Game from IGN; Game of the Year from OXM and Gamespy for Project Gotham Racing 3; and IGN's Best XBLA Game for Geometry Wars: Retro Evolved.

"Activision continues to grow and drive greater value for our shareholders by broadening our portfolio and entering new gaming categories with strong global appeal," said Robert Kotick, Chairman and CEO of Activision, Inc. "Bizarre Creations is the leading independent developer with a proven track record in developing highly successful and influential original properties, especially in the racing field. They are one of the most innovative and creative studios in the industry, and we are very excited to welcome this talented creative team to Activision."

Mike Griffith, President and CEO of Activision Publishing, Inc., added, "Bizarre Creations will play an important role in our growth strategy as we develop an original new intellectual property for this important racing segment, expand our portfolio in other genres and utilize their proprietary technology for cross platform development."

Martyn Chudley, Managing Director of Bizarre Creations said, "Our goal at Bizarre Creations has always been to do all we can to nurture our creative and passionate teams, who excel at and enjoy what they do. Activision's independent studio model will continue giving us creative freedom to build exciting new brands. Their financial support and marketing prowess will also enable us to build upon the commercial success that we currently enjoy, and take the company - and our games - to an even higher level."

Under the terms of the acquisition, Bizarre Creations will become a wholly owned subsidiary of Activision and company's management team and employees continue with the company as their teams start to develop two new AAA titles alongside their current projects. The 160-person development studio is located in Liverpool, England. Financial terms of the agreement were not disclosed. Activision expects that its first game from Bizarre Creations will be released after fiscal year 2009.

Now, I hope this means good news all around for the Bizarre Creation's folks, including the B3D forum members who work there.

With that said, this news made one person really sad already. And that's Rys, he's a PGR fan person and the news of no more PGR didn't go well with him. Of course, him and other PGR fans shouldn't worry too much, they'll get their arcade racing fix from Bizarre Creation, it will just bear another name. Well, unless MS sells the IP to Activision, and if Activision is willing to drop the big bucks for it... Which is highly unlikely at this point.

On the PGR topic still, I wonder whether MS will put the IP to sleep for while, or if they'll farm it to an internal (Turn 10? Rare? It's been a while since Rare worked on an arcade racer for an home console) or extrenal studio right away.

[avaya]

Activision,

Please buy F1 license and let Bizarre create the game. I want F1 '97 in 2008/9.

[TheChefO]

UGH!

MS should have listened to their own ad campaign and "finished the fight" by buying this studio. They have helped put MS on the map with some crucial titles on a timely basis.

Fools.

[TheChefO]

Originally Posted by Farid

On the PGR topic still, I wonder whether MS will put the IP to sleep for while, or if they'll farm it to an internal (Turn 10? Rare? It's been a while since Rare worked on an arcade racer for an home console) or extrenal studio right away.

Regardless, no disrespect to those teams, but BC was and is leading the pack in this sub genre. No one is even close.

MS screwed up - yet again. Another franchise that is worthless now.

Rallysport - done
Mech - done
PGR - done

[avaya]

Why is it the end of the PGR series?

Microsoft could simply contract Activision on PGR5. I think it will be good for the franchise to have a bigger break between installments. It will prevent oversaturation and keep it fresh.

[TheChefO]

Originally Posted by avaya

Why is it the end of the PGR series?

Microsoft could simply contract Activision on PGR5. I think it will be good for the franchise to have a bigger break between installments. It will prevent oversaturation and keep it fresh.

They could, but they could have easily done the same with Rallysport and EA ... but that didn't happen. Activision wants the publishing rights and probably wants to put it on as many consoles as possible.

The series is dead.

[avaya]

Originally Posted by TheChefO

They could, but they could have easily done the same with Rallysport and EA ... but that didn't happen. Activision wants the publishing rights and probably wants to put it on as many consoles as possible.

The series is dead.

To be fair, Rallysport was never in the same league as PGR. Things might be different.

[TheChefO]

Originally Posted by avaya

To be fair, Rallysport was never in the same league as PGR. Things might be different.

Never say never, but in my eyes, the series is dead unless I see otherwise.

MS just shot themselves in the foot on this one.

They leaned heavy on these guys for launch titles on both xb1 and xb2. Why they didn't secure this relationship for future gens is beyond me, unless they aren't planning on needing help at launch ... but how many console makers do you know that can't use help with cutting edge software at their launches? None that I'm aware of. Perhaps this is a sign MS isn't planning to have a xb720 ... either that or they're idiots.

[RobertR1]

Bizarre would be a much better buy than Turn10. Bad move MS!

[TheChefO]

Originally Posted by RobertR1

Bizarre would be a much better buy than Turn10. Bad move MS!

Sometimes, I wonder how good they could be ... if they didn't screw up so badly.

[Farid]

Originally Posted by avaya

Why is it the end of the PGR series?

Microsoft could simply contract Activision on PGR5. I think it will be good for the franchise to have a bigger break between installments. It will prevent oversaturation and keep it fresh.

I think it's fair to say that Activision didn't go out of it ways to buy a development studio only to lock half of it on a single platform project. It's not in Activision best interests, nor is it financially interesting for any of the parties involved. A new Bizarre racer will surely be available on PC/Xbox 360/PS3, with maybe PS2/Wii/PSP/DS versions as well. These latters possibly farmed out to other developers.

A new PGR game would be either the result of MS getting another studio on the project (pun intended) or MS selling the IP to Activision (or any other publisher, but then it would still not be developed by Bizarre, so we would be back to square one.)

Recent EA's successes with the Need For Speed series didn't pass unoticed by Activision. In fact, Activision portfolio could use both a big racing franchise, which Bizarre can bring to them, but also more original IPs, period. And here again, I think Bizarre can help with that, as well.

[scooby_dooby]

Amax team (PGR4) and Shitstorm team (The Club)

Lol, great team name!

[TheChefO]

Originally Posted by scooby_dooby

Lol, great team name!

No doubt that they were behind this mess!

[dobwal]

Originally Posted by Farid

I think it's fair to say that Activision didn't go out of it ways to buy a development studio only to lock half of it on a single platform project. It's not in Activision best interests, nor is it financially interesting for any of the parties involved. A new Bizarre racer will surely be available on PC/Xbox 360/PS3, with maybe PS2/Wii/PSP/DS versions as well. These latters possibly farmed out to other developers.

A new PGR game would be either the result of MS getting another studio on the project (pun intended) or MS selling the IP to Activision (or any other publisher, but then it would still not be developed by Bizarre, so we would be back to square one.)

Recent EA's successes with the Need For Speed series didn't pass unoticed by Activision. In fact, Activision portfolio could use both a big racing franchise, which Bizarre can bring to them, but also more original IPs, period. And here again, I think Bizarre can help with that, as well.

Since PGR has already shown to be successful even while being exclusive to the 360 there is plenty of incentive to produce an exclusive racer using a MS owned IP that the studio.

A mult platform racing IP has more financial potential but developing a new PGR allows unfettered access to code and art work owned by MS, which means easier development and shorter development time since the dev already has intimate knowledge of the IP. Plus, PGR comes with a built in fanbase, something you have to build with a new IP, which means PGR success doesn't guarantee success of any new brand racer from Bizarre.

[Shifty Geezer]

It's interesting the different approaches to software between MS and Sony. Sony would have bought up Bizarre, just as they have done Evolution. They're really collecting dev houses to secure content. MS are in a stronger position to secure software houses yet are much happier to leave it to 3rd parties.

[Rainbow Man]

Originally Posted by TheChefO

Activision wants the publishing rights and probably wants to put it on as many consoles as possible.

The series is dead.

Why would it kill the series to put it on multiple consoles?

I don't understand the logic - if there is any.


Surely it's a good thing more people get to play good games yes?
Peace.

[dobwal]

Originally Posted by Rainbow Man

Why would it kill the series to put it on multiple consoles?

I don't understand the logic - if there is any.


Surely it's a good thing more people get to play good games yes?
Peace.

MS owns the IP to PGR so it means that unless MS sell's the IP to Activision it would never show up as a multi-port.

[dobwal]

Originally Posted by Shifty Geezer

It's interesting the different approaches to software between MS and Sony. Sony would have bought up Bizarre, just as they have done Evolution. They're really collecting dev houses to secure content. MS are in a stronger position to secure software houses yet are much happier to leave it to 3rd parties.

You buy up devs house to secure the talent since most of the IPs are own by the pubs.

I guess MS figures that its cheaper to retain the IP and contract news devs if old ones become inaccessible. Buying up devs means you responsible for their cost whether or not they produce good software that sells or crappy software that bombs.

[DJ12]

Originally Posted by Shifty Geezer

It's interesting the different approaches to software between MS and Sony. Sony would have bought up Bizarre, just as they have done Evolution. They're really collecting dev houses to secure content. MS are in a stronger position to secure software houses yet are much happier to leave it to 3rd parties.

Is it really as simple as that though?

It seems being "under Sony's wing" really is beneficial to dev houses. Take Naughty Dog, Insomniac and Evolution Studios until recently, all operating on their own essentially, Sony are hardly knocking down doors to buy any of them, yet the treatment they get from Sony seems to have these devs locked down.

There is more to it than simply throwing money around in my opinion.

The fact they felt the need to mention Activision are "hands off" might be significant...

Originally Posted by dobwal

MS owns the IP to PGR so it means that unless MS sell's the IP to Activision it would never show up as a multi-port.

MSR > PGR > PGR 2 > PGR 3 > PGR 4 > MPR (Multi-Platform Racer)

If you call a Rose a turd, it's still a Rose.

[TheChefO]

Originally Posted by Shifty Geezer

It's interesting the different approaches to software between MS and Sony. Sony would have bought up Bizarre, just as they have done Evolution. They're really collecting dev houses to secure content. MS are in a stronger position to secure software houses yet are much happier to leave it to 3rd parties.

Translation:

Sony, unlike MS, understands the impact that quality developers can make on a platform.

[TheChefO]

Originally Posted by dobwal

You buy up devs house to secure the talent since most of the IPs are own by the pubs.

I guess MS figures that its cheaper to retain the IP and contract news devs if old ones become inaccessible. Buying up devs means you responsible for their cost whether or not they produce good software that sells or crappy software that bombs.

True, but at the same time, quality developers don't grow on trees.

The best of the best sell a lot of software and are valuable for a reason.

It has very little to do with the IP.

[aselto]

Naught Dog is a Sony's studio, it's not external.

No more PGR made by Bizarre is a huge loss for me as a gamer as it's my favourite racing franchise and probably a big loss for Microsoft, too. Though I think if they didn't want to acquire BC themselves it's better for MS this way. Microsoft has been far better signing contracts for exclusive games with independent developers and 3rd party publishers rather than acquiring developers (FASA, Rare), which were huge investments but their games didn't sell all that well.

[TheChefO]

Originally Posted by DJ12

The fact they felt the need to mention Activision are "hands off" might be significant...



MSR > PGR > PGR 2 > PGR 3 > PGR 4 > MPR (Multi-Platform Racer)

If you call a Rose a turd, it's still a Rose.

Interesting point on the 'hands off' comment. Perhaps MS could learn a thing or two in this regard.

Maybe they should have just had the company "move in" like Ninja Theory did, then maybe they would be a bit more comfortable that the team had everything under control.


Regarding the transition of the title, they would probably go back to MSR unless Sega owns it, but like I said, it's dead to me until proven otherwise.

[TheChefO]

Originally Posted by aselto

I think if they didn't want to acquire BC themselves it's better for MS this way. Microsoft has been far better signing contracts for exclusive games with independent developers and 3rd party publishers rather than acquiring developers (FASA, Rare), which were huge investments but their games didn't sell all that well.

To me it's a sign of arrogance really. As if they are in a position to not need exclusive devs and every dev making a AAA game will ned to have it on xb360. There is some truth to that, but nothing in this industry is a guarantee.

Perhaps MS feels they have bigger fish to fry and are eying a few other devs?

I think a big one, if for nothing else other than engine, tool and tech support, would be Epic.

Regardless, this is huge loss for MS.

[Farid]

Originally Posted by dobwal

Since PGR has already shown to be successful even while being exclusive to the 360 there is plenty of incentive to produce an exclusive racer using a MS owned IP that the studio.

Successful enough for Activision to go out of their ways to buy the whole studio only to serve as a middleman just to share some of income with MS?

While I understand where you're coming from and I also concede that it's an interesting and fair theory. I'll also admit that I don't believe it's a probable scenario at all. Activision is too big of a company to be interested in these type of limited in scale and scope deals. They're currently giving EA a rough time for the number one third-party publishers spot in the U.S.

This purchase is clearly strategical for Activision, they want to expand their reach on new segments of the market and they want to increase their portfolio (where they're clearly lagging behind EA.)

Now, and that should be evidence enough the wording and claims made in these official announcements are quite clear in their message: "Well, we're no longer tied to just one platform for starters. Our future titles can be on whatever we please - we are a truly multiplatform studio now." And the claim that makes it obvious Activision wants its racing franchise: "Both of our two main game teams are about to start work on two new AAA titles for Activision. One will be a racing game."

Now concerning the re-using the code they worked on for PGR. While it's true the final code probably belong to MS, the technology itself can't be reasonably tied to MS. And even if it was, it would be hard to prove they're re-using part of it. And I'm not sure MS would want to have recourse to legal threat with Activision. It would be bad business, not to mention that MS was surely (well, factually) aware of the sale of the studio. Now, for the art, here again, MS might own the game implementation of that artwork, the source files (Giga Bytes of city picture data) might be the property of Bizarre, depending of their contractual obligations with MS. And if it's not, MS either took back their assets and Activision would have to fund creation assests (standard process for a big budget title and in this case, assets would be re-useable many years and for many games on many platforms), or MS took a copy of it (or nothing at all... It wouldn't be the first time MS doesn't ask for their (legally owned) artwork/code back) and left Bizarre with it. Here again, there's no reasons to think MS would want to part in an inimical way with Bizarre.

Anyway, concerning the question about who owns the source assets accumulated by Bizarre over the years can be answered by the dev team folks we have on the board. So, if one of the guys know that anwser, feel free to PM me. It's not a big secret trade question, but it remains a business question, so I'm not sure we'll get an anwser... At least one I'd be free to post clearly on the board.