You might think that after creating a 
title that has over 12 million customers happily paying a monthly subscription fee, Blizzard Entertainment would be immune to some of the fears circling the video game industry.
But Frank Pearce, co-founder of the development giant, says he’s just as worried about the impact of Facebook and iPhone games as everyone else.
The Wall Street rumor mill has been 
alive with chatter for the past couple of weeks about whether video game king of the hill Activision-Blizzard should buy Take-Two Interactive Software.
It’s a merger that makes sense on some levels—but is absolutely baffling on others.
The countdown is on for the next
installment in the “Call of Duty” franchise – and all signs are pointing to “Modern Warfare 3”.
Activision has sent out dog tags to select members of the press that include the message “end the war” and refer to athe website FindMakarov.com. That site (which is getting hammered right now) features a countdown clock that’s set to expire Wed. March 2 at 7am PST.
[UPDATED: Activision has issued a statement that the site has no ties to the “Call of Duty” franchise. The publisher has further clarified it had nothing to do with the dogtags sent to some media outlets, either.]
After two consistent years of negative 
growth, investors in the video game industry are hoping for things to start turning around in 2011, but they may have to wait a little longer for that to happen.
Analysts expect software sales in January, which will be announced after the market closes Thursday, to be well off of last year’s pace, as a lack of big titles and the traditional post-holiday slump drag down the retail sector.
While Wednesday’s announcement that 
Activision-Blizzard was pulling the plug on “Guitar Hero” might have turned heads in the gaming world, it was the company’s other announcement that might have bigger repercussions for investors.
As it cancelled games and the long-standing franchise, the publisher also announced plans to double down in the digital space and increase its focus on the lucrative “Call of Duty” franchise, two steps analysts say could significantly raise the company’s margins.
With gigantic franchises like Call of Duty and 
World of Warcraft in its back pocket (which apparently has a Guitar Hero-sized hole in it), Activision has a firm grip on the adult audience. Now it’s looking to add children to its customer base.
The company has announced a reboot of the long-running Spyro the Dragon franchise, and aims to combine the video game world with physical toys.
[Gamasutra editor-at-large Chris Morris analyzes the sudden 
dissolution of the Guitar Hero music franchise at Activision, with input from multiple financial sector analysts, who discuss how the company has “pretty much driven the franchise into the ground”.]
Players might still be reeling from the news that Activision is pulling the plug on Guitar Hero, but Wall Street is giving the fat lady a standing ovation.
It’s no secret that the franchise has been in considerable decline for the past couple of years. And while it seems like it was only yesterday that the games were pulling in $1 billion, analysts say the publisher made a hard choice that will likely serve it well over the long term.
At Activision-Blizzard, Feb. 9 will
be known as the day the music died.
The videogame publisher announced plans Wednesday to discontinue development of future “Guitar Hero” games, essentially putting what was once one of its top-earning franchises on ice.
The fat lady has sung in Activision’s 
“Guitar Hero” franchise.
The publisher today announced that it was discontinuing development on future games in the series – as well as related titles such as “DJ Hero” and “Band Hero”. Also cancelled was “True Crime: Hong Kong”.
The war of words between Activision-Blizzard and Electronic Arts has moved to a new plateau. Activision has added the rival publisher to its $400 countersuit against the creators of the “Call of Duty” franchise.
A Los Angeles Superior Court judge approved the amendment to the suit Thursday, acknowledging Activision’s allegations that EA wooed Jason West and Vince Zampella, the heads of the wholly-owned Infinity Ward subsidiary, while they were still under contract with Activision.
Chris Morris: Journalist 