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Activision, Inc. — 2004 Annual Report
page 3
Production values, the way games look and sound, continue to increase as console
technology advances and we expect that the production values of the next generation
of console systems will approximate those of movies and TV. In 1981, “ER” and “Jurassic
Park” creator Michael Crichton made a movie called “Looker,” about a scheme to
replace actors with computer-generated images indistinguishable from real people. It
seemed fantasy then, but today’s computer-made imagery does look real enough to fool
the casual observer.
The technology that makes possible these visual advances (and audio advances, too,
which already approximate reality) also allows us to move beyond linear storytelling to
player-controlled development of characters and plots. Players will transcend the standard
video game quest experience to affect the plot of the story, character behavior,
settings and background, and even the nature and degree of interaction itself.
We think of it as a shift from re-creating a part in an action movie, to actually taking on
the role in a virtual arena, defining and experiencing it through players’ own choices.
For the past 25 years, Activision has been at the forefront of the video game industry.
Today, our business, the business of creating quality interactive entertainment experiences
and distributing them worldwide, spans the most dynamic part of the digital economy
with high prospects of continued expansion.
Activision’s strength and purpose reside in the shared values that bring so many extra-
ordinarily talented employees here and cause them to invest their abilities, artistry and
time in our company. We believe that by seeking a broad diversity of talent and ambi-
tion, we make ourselves stronger. We carry out this belief inside the company through the
way that we hire, promote and compensate our employees and outside the company in
our commitment to community building initiatives. This year, our support for community
involvement has never been stronger. We forged an alliance with the Tomorrow’s Leaders
program which provides more than 4,000 youths with a strong foundation for academic,
social and technological success. Many of our employees are involved with the program’s
volunteer activities that aim to help participants learn about positive peer interaction,
complete their homework and teach them computer skills.
As we look ahead, we are determined that Activision will remain focused on innovation,
imagination and finding new ways to better serve our customers and reward our
employees and shareholders. We will always seek to stand for quality entertainment, and
we are more confident than ever that we will meet this responsibility and be tomorrow
what we have been for the past 25 years, one of the world’s leading interactive
entertainment companies.
Sincerely,
Robert A. Kotick Brian G. Kelly Ronald Doornink
Chairman and CEO Co-Chairman President