Activision Launches Elsewhere Entertainment for New AAA Franchise

Activision, a prominent player in the video game industry known primarily for its blockbuster franchise Call of Duty, has announced the establishment of a new studio named Elsewhere Entertainment. This new venture, based in Warsaw, Poland, aims to develop a "narrative-based and genre-defining AAA franchise," marking a significant shift in focus for the company, which has heavily relied on its existing franchises in recent years.

The announcement comes just over a week after Microsoft, which acquired Activision for $69 billion, closed several studios under its Bethesda division, including those responsible for critically acclaimed titles like Prey and The Evil Within. This timing has raised eyebrows and sparked discussions about the implications of opening a new studio while others are being shuttered. Critics have pointed out the optics of such a move, suggesting it reflects a troubling trend in the gaming industry where consolidation often leads to layoffs and studio closures.

Elsewhere Entertainment is described as a "premier and standalone studio," built from the ground up to foster creativity and collaboration among its team members. The studio's staff includes veterans from some of the most successful franchises in gaming history, such as The Last of Us, Uncharted, The Witcher, and Cyberpunk 2077. This wealth of experience positions Elsewhere to potentially create a compelling new intellectual property that could resonate with audiences beyond just video games, possibly extending into other media formats like television or film.

Activision's blog post emphasized the studio's mission to craft a franchise with "an enduring legacy that resonates far beyond games." This ambition aligns with a broader trend in the entertainment industry, where successful video game franchises are increasingly being adapted into films and series, as seen with the recent adaptations of The Last of Us and The Witcher.

Despite the excitement surrounding the formation of Elsewhere Entertainment, the context of its launch cannot be ignored. The gaming industry has been experiencing significant upheaval, with thousands of layoffs and studio closures reported in recent months. Microsoft itself laid off 1,900 employees earlier this year, a move that included cuts at Activision Blizzard. The juxtaposition of creating a new studio while closing others has led to skepticism about the company's priorities and the sustainability of its business model.

While Activision has stated that Elsewhere Entertainment is not working on any Call of Duty-related projects, the decision to invest in a new franchise is noteworthy. Historically, Activision has focused on expanding its existing franchises, with new intellectual properties emerging infrequently. The last major new franchise from the company was Sekiro: Shadows Die Twice, released in 2019. This shift towards developing original content could signal a strategic pivot aimed at diversifying Activision's portfolio and reducing its reliance on a single franchise.

As Elsewhere Entertainment begins its journey, it is actively seeking top talent from across the industry to help realize its vision. The studio's formation is seen as a glimmer of hope in an industry grappling with the fallout from recent layoffs and closures, offering new opportunities for developers who may have been affected by the recent upheaval.

In conclusion, the establishment of Elsewhere Entertainment represents both a bold step for Activision and a reflection of the current state of the gaming industry. As the company seeks to carve out a new narrative-driven franchise, it must navigate the complexities of a rapidly changing landscape, balancing innovation with the realities of a market that has seen significant consolidation and workforce reductions. The coming years will reveal whether this new venture can thrive amidst the challenges facing the industry.