First1000: How Activision Acquired Its First 1000 Users

In this edition of First1000, we explore the story of Activision, a pioneer in the video game industry and one of the first independent game developers. With a rich history that dates back to the early days of home consoles, Activision’s rise to fame came through a series of bold moves, a commitment to creativity, and a relentless focus on making fun, engaging games.

The Founding Story of Activision

Activision was founded in 1979 by a group of former Atari employees, led by David Crane, Alan Miller, Bob Whitehead, and Larry Kaplan. The founders were programmers who felt unappreciated at Atari, where they were not credited for their work and had no control over the games they made. They believed that game developers deserved recognition and creative freedom, and that’s how Activision was born—the first third-party video game publisher in history.

Activision set out to challenge the status quo by focusing on quality games for the popular Atari 2600 console. The founders had a deep understanding of what gamers wanted because they themselves were gamers, and they were determined to make the best games possible. The company's early slogan, "We make great games because we love to play them," captured their philosophy.

Ingenious Tactics to Acquire the First 1000 Users

In a time before social media and digital marketing, Activision had to be creative in how it reached its first 1000 customers. Here's how they did it:

1. Game Quality and Word-of-Mouth: Activision’s first titles—Kaboom!, Pitfall!, and River Raid—were all standout hits that resonated with players. By creating high-quality games with engaging gameplay, Activision earned a loyal following of early users who spread the word. Since there weren’t many game publishers at the time, word-of-mouth played a huge role in getting people excited about Activision’s products. Pitfall! in particular, became one of the best-selling games on the Atari 2600, helping Activision reach its first 1000 users quickly.
2. Direct-to-Consumer Marketing: Activision embraced direct mail marketing to engage with their early users. They placed ads in gaming magazines like Electronic Games and Video Games Player, and offered game manuals that included stories about the developers, adding a personal touch. This strategy allowed them to connect directly with players and promote new releases, building a fanbase that felt connected to the creators behind the games.
3. Developer Recognition and Branding: Unlike other companies, Activision gave its developers public recognition by prominently placing their names on the game boxes. This not only boosted morale among developers but also turned them into gaming celebrities, further attracting attention to their games. Early fans became loyal to the brand, knowing that these were games made by people passionate about gaming.
4. Gaming Competitions and Fan Engagement: Activision fostered a community by organizing game competitions for their most popular titles. Players were encouraged to send in photos of their high scores for a chance to win patches and other prizes. This interactive approach created a sense of excitement and loyalty among players, especially with games like Kaboom! and Pitfall!, which had competitive high-score elements.
5. Partnership with Retailers: Activision partnered with retailers to create attractive in-store displays and promotional events that highlighted their games. They understood the importance of point-of-sale marketing, and by making their games stand out in stores, they captured the attention of early adopters.

Through these tactics, Activision was able to reach its first 1000 customers relatively quickly. Their focus on quality, community engagement, and empowering developers set them apart from other companies at the time.

Activision Today

Today, Activision Blizzard is one of the largest and most successful video game companies in the world, with franchises like Call of Duty, World of Warcraft, Diablo, and Overwatch. The company was formed after Activision’s merger with Blizzard Entertainment in 2008. With a market cap in the tens of billions, Activision Blizzard continues to dominate the gaming industry. In 2022, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion, a deal that would make it one of the largest tech acquisitions in history. Activision Blizzard is listed on the NASDAQ under the ticker symbol ATVI.

What is First1000?

First1000 is a series that uncovers the stories of how iconic companies acquired their first 1000 users. By delving into the strategic choices, early challenges, and creative solutions, we provide insights for entrepreneurs and business leaders who aim to replicate these successes.