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Activision SEC filings sure have gotten interesting lately, haven't they? First we learned that the company ousted the heads of Infinity Ward, then we saw World of Warcraft listed as a potential risk and now we have word that Blizzard is currently developing Diablo sequels. Take a breath and read that again: Sequels, as in "more than one."

Yes, the very same SEC filing mentions that Blizzard is currently hard at work on Cataclysm, StarCraft II and "sequels to the Diablo franchise." It's very possible, and even likely, that the filing refers to Diablo III and its inevitable expansions (which had better include the Necromancer). It's also possible that the phrasing is meant as a forward-looking statement, stating that Blizzard continues to work on the Diablo franchise. It's also worth noting that the same SEC filing refers to "development of a sequel" to the game, so reference to "sequels" could simply be a mistake. Or maybe, just maybe, Blizzard is pumping out more Diablo than we thought.

When reached for comment, a Blizzard representative told Joystiq, "We don't have any new announcements to make." He added, "For the Diablo franchise, our full focus is on Diablo III." So that means it's coming out really soon, right? Right?

If there's anything that all the chaos between Activision and Infinity Ward in the past 24 hours has taught us, it's that no one is safe and dry under Bobby Kotick's umbrella. And while Call of Duty: Modern Warfare was one of Activision's biggest earners, that hasn't stopped the company from revamping the brand however it sees fit. So what about Activision's other big game, Blizzard's World of Warcraft? The same annual report released to the SEC yesterday that kicked off the Infinity Ward shakeup also mentions that Activision is worried about WoW becoming "obsolete," and that the regulatory issues in China could affect the entire company's bottom line.

So will we hear about Mike Morhaime being frogmarched off of the Blizzard campus? Not likely -- the fears about WoW are all in a section of the report labeled "Risk Factors," in which a company must disclose anything that could possibly go wrong with its financials in the future, just in case. In there, Activision worries about everything from credit card fraud to its ESRB ratings -- WoW is mentioned a lot because it makes up most of the revenue (in fact, one of the worries is that Activision depends on WoW too much), but these are all worst case scenario guesses. The report admits that Blizzard did decrease its net revenues last year, but then credits that to no new releases in 2009 and interrupted licensing fees from China. Assuming Blizzard releases both Starcraft II and Cataclysm as planned in 2010, the odds are low that Activision will raise the axe in that direction.

The StarCraft II beta is currently underway and already has us pining for the full release. As for exactly when that will happen, all we've known is that Blizzard plans to release the game in the first half of 2010. According to the latest BlizzCast, that's still the plan. During the podcast, production director Chris Sigaty stated that the beta should last "three to five months" and added that Blizzard is "still targeting the first half of this year."

With a three to five month beta window, that puts the end of the test somewhere between May and July. Of course, there's no telling how soon the game will release after the close of the beta, but hopefully it won't take too long. The universe won't save itself, after all.

Finally, for those out there lucky enough to be in the beta, you should know that the first patch is now available. You can check out the list of changes on the Battle.net forums.

[Via Big Download]

Just when it seemed that NetEase had finally gotten things under control to operate World of Warcraft in China, it's hit another potential road bump. The company released an official statement to Chinese press announcing the resignation of project chief Li Riqiang, according to JLM Pacific Epoch, a research firm that focuses on China. The statement did not give a specific explanation for Riqian's departure nor did it name a possible replacement to fill the seemingly important vacancy.

Since taking over World of Warcraft operations in China from The9, NetEase has faced a series of difficulties. It seemed like the company had finally gotten back on track, however, as NetEase was recently approved to run World of Warcraft and the Burning Crusade expansion. It's as yet unclear how Li's absence might sour that good fortune.

[Via GI.biz]

Activision is being sued by the Patent Compliance Group for "false patent marking." Don't walk away! It's not that complex, we promise. What it basically means is that this private group of patent police is trying to ding Activision on patents it has on products that are beyond the scope of what it's producing. The reason for the lawsuit, according to the PCG, is that "false patent marking is a serious problem. Acts of false marking deter innovation and stifle competition in the marketplace. If an article that is within the public domain is falsely marked, potential competitors may be dissuaded from entering the same market."

LGJ columnist (and lawyer) Mark Methenitis explains, "Some claims may have some merit like the '753 patent, which is basically for a DDR pad, which wouldn't necessarily apply to Guitar Hero; or the '689 patent, which is for the DJ Hero turn table which does not work with Guitar Hero 5 or Band Hero. To me, it looks like the shotgun approach: hit everything and hope something sticks." Check out Methenitis' full response to us after the break.

PCG is seeking $500 for each of Activision's violations, which is set by statute. As Gray on Claims notes, Activision isn't the only company caught in the crosshairs of the "patent police." What these groups are attempting to do is keep companies (like Activision!) from putting a patent on ideas or concepts that aren't in development.

PDF -- Patent Compliance Group v. Activsion
Source -- Patent Marking Police out in full force

[Via Edge, THR]

Apparently, not everyone who received one of those fancy voucher codes from BlizzCon 2008 was accepted into the first wave of invites for StarCraft 2. A Blizzard representative explained on the Battle.net forums that "due to the sheer number of BlizzCon attendees, we could not get everyone in with the first wave." That being said, you might want to reconsider dropping $300 on one of those vouchers.

The poster confirmed that these neglected BlizzCon attendees "will be included in a future wave, possibly within the next two weeks." We're hoping the wave isn't restricted to just this group of globetrotters, and that us plebes can get our hands on the highly sought-after strategy title as well.

[Via Big Download]

Activision CEO Bobby Kotick's speech at DICE was certainly a highlight of this year's convention. The polarizing figure took the stage and spoke his mind -- whether it was for better or worse was a topic of debate for the rest of the show. Some saw it as humanizing the demonized executive, who makes no apologies for running an efficient and profitable company (especially in this economy), while others couldn't believe that PR ever let him take the stage with what seemed like a fairly off-the-cuff speech.

Disbarred attorney Jack Thompson took the opportunity to send California State Senator Leland Yee (and the entire press) a letter declaring "Gotcha!" to a section of Kotick's speech. Using a piece he read on GamePolitics as a springboard, Thompson writes that Kotick's admission that the executive would still be really into video games if it didn't run the risk of interfering with his life and running a major publisher is an "admission [that] flies in the face of video game industry spokespersons' false, sometimes perjured assertions, that video games do not affect the behavior of minors. Here is a full-grown adult (at least in chronological terms) admitting just the opposite."

In context, though, Kotick's admission is more in line with many adults, who have responsibilities to balance along with enjoying video games. Kotick recognizes he has an addictive personality -- noting as much about enjoying food -- so he keeps his gaming in check. Watch the full Kotick speech, and read Jack Thompson's letter, after the break. Kotick mentioning why he doesn't play games at the level he did in his youth begins at the 11:30 mark.

We've received a ton of emails asking how one might get up on the StarCraft 2 beta if they didn't apply for access last year. Kotaku recently turned our attention to a possible solution, though ... well, you're not going to like it. More than 50 beta keys, most of which came in the form of coupons handed out at BlizzCon 2008, are now being auctioned off on eBay. The prices range from around $120 on the low end, averaging out at about $300, and reaching as high as $450.

If you're as independently wealthy as you are impatient, this may be your only channel for instant gratification. Of course, keep a watchful eye out for scammers, and keep in mind that purchasing Battle.Net accounts linked to World of Warcraft accounts is against Blizzard's Terms of Use. We'd also advise you to take a good look into that deep, dark, truthful mirror, and think about all the other things $300 can buy. (Hint: It can buy a lot of things.)

Wearing a zippered pullover, jeans and not looking at all like the CEO of Activision Blizzard, Bobby Kotick delivered a deliberately human speech at DICE today. Part autobiographical story about his start in the games business, part contrition, the Kotick who spoke at DICE conveyed the sense of a misunderstood über executive with a business to run, admitting that he's made mistakes during his time. Surprisingly, Kotick admitted that although he doesn't play very many games today (because it would affect his responsibilities), he still has callouses from playing Defender back in the day and he still wakes up in the middle of the night and sees the words like "Open door with gate key."

For his anecdotes of business regret, Kotick reiterated the story of missing out on buying Blizzard for $7 million, and it turns out he had another opportunity pre-World of Warcraft to buy it for $700 million -- the final price tag was considerably more. He also mentioned missing out on buying Maxis while Will Wright was working on "Jefferson," which eventually turned out to be mega-franchise The Sims. Another acquisition that could have gone quite differently was that when Activision was looking at purchasing Guitar Hero from RedOctane, he stated that he didn't look in Harmonix's direction, which he felt was "somewhat a failed developer of music games." Kotick alluded that had he taken the trip to Boston to meet Harmonix, the "world of Guitar Hero would have been rewritten."

The softer side of Kotick also took the opportunity today to clarify his oft-quoted "take all the fun out of making video games" statement. He explained that at the time he was trying to be humorous talking to investors and was just trying to express that the company was fiscally responsible and has a "commitment to excellence." However, even as Kotick brought the love, he stayed clear of mentioning the recent layoffs, capping his presentation with the announcement of the indie games competition.

Reports began circulating this morning about major layoffs at a handful of Activision-owned development studios, affecting as much as half of Radical Entertainment's staff (Prototype), an undisclosed amount of Neversoft employees (Guitar Hero, Tony Hawk), and the entirety of Luxoflux (Tranformers). An Activision rep confirmed two former studio layoffs to us this afternoon, though a representative didn't city any official numbers -- the rep also told us he could "confirm the closure of Luxoflux."

The full, significantly more vague, company statement given out to everyone reads: "Activision Publishing continually evaluates its resources to ensure that they are properly matched against its product slate and strategic goals. In 2010, the company's SKU count will be smaller than in 2009 driven in part, by a decrease in the number of music-based games we will be releasing. As we discussed on our earnings conference call yesterday, we are directing our resources against the largest and most profitable business segments, and as part of this initiative, we are realigning our resources to better reflect our slate and the market opportunities. At the same time, we are increasing our digital/online capabilities as we expect that digital/online will continue to become a more meaningful part of our business model in the years ahead."

Today Activision Blizzard reported the financial results of its December quarter and the entire 2009 calendar year. For the year, Activision recorded a net income of $113 million, a modest turnaround from the $107 million in net losses for the company in 2008. Led by sales of Modern Warfare 2, all signs -- at least, this one -- pointed to an outstanding Q4 for the publisher. However, figures released today indicate that Activision actually posted a $286 million net loss during the period.

"Despite these challenging times, in 2010 we remain focused on expanding operating margins by growing our high-margin digital/online revenues, directing our resources to the largest and most profitable opportunities and realizing operational efficiencies globally," CEO Bobby Kotick said. "In calendar year 2010, we expect our net earnings and operating margin growth will be driven by our product slate that includes Blizzard Entertainment's Starcraft II and the World of Warcraft expansion pack, Cataclysm, as well as a diversified lineup based on Activision Publishing's best-selling franchises including Call of Duty, Guitar Hero and Tony Hawk, together with other well-known titles such as True Crime, Spider-Man and Bakugan."

While few details were give about Activision's pending slate of sequels, spinoffs and possible reboots, Mike Griffith, President and CEO of Activision Publishing, did share a few words about the next True Crime game. "We'll be releasing a game in the $4 billion action genre, based on our True Crime franchise," Griffith said. "The game blends intense Hollywood-style driving with martial arts combat and shootouts to deliver an Asian cinema-inspired action thriller. This is a big open-world action game that looks especially strong." Griffith also confirmed that a new 007 game is still in the works for 2010.

Additionally, Activision noted that two new IPs are in development for its 2010 lineup and assured that additional DLC will continue to be released for Guitar Hero 5 (and presumably Band Hero), as well as for DJ Hero. The next installments in both music game franchises, Guitar Hero and DJ Hero, are due in "the back half of the year," according Griffith. Activision also announced that it has ceased developing new Guitar Hero games for the PlayStation 2 platform. Aw, shucks.

In a recent segment on The Jace Hall Show, the typically secretive Blizzard dev team gave the towering host/television producer/Monolith founder a sneak peek at some of the concept art for the female iteration of Diablo 3's Monk class. While she doesn't embody what we normally imagine when we think of devout martial arts experts, she looks supremely badass. You can check out a few screengrabs from the clip on fan site BlizzPlanet, or simply watch the video posted after the jump (the segment starts at the 6:44 mark).

[Via VG247]

Activision is continuing to help military veterans through its Call of Duty Endowment (C.O.D.E.), and, in a way, so are the patrons of its mega-popular war franchise. Today, C.O.D.E. announced that it will be giving $100,000 to the Wounded Warrior Project, for the purpose of establishing a fifth Transition Training Academy where injured veterans can receive training and pursue a career in information technology.

Last November, the publisher pledged $1 million from sales of Call of Duty: Modern Warfare 2 towards programs aiding military personnel in their return to civilian life, having made an initial donation of $125,000 to Paralyzed Veterans of America in the fall.

Blizzard recently released yet another batch of gameplay screenshots from Diablo III, showing off some of the game's arid environments. They're attractive as all-get-out, but we've become extremely distracted by their subject matter. For instance, we see some sand, and then we see some blood on that sand, and then we think of how awesome it would be if Blizzard did a top-down RPG version of 50 Cent: Blood on the Sand, and then that's all we think about for the rest of the day. Curse you, overactive imagination!

Activision CEO Bobby Kotick mentioned in a recent interview that he could have bought World of Warcraft developer Blizzard Entertainment back in the mid-'90s for a mere $7 million -- instead of having to do that whole $18 billion deal 12 years later. Speaking with Game Informer, the polarizing executive notes that during a dinner in 1995 he was shocked that another company bothered to buy Blizzard for $7 million. That year, Kotick says that Activision had about $60 million in revenue.

The executive thought at the time that his dinner companions were "out of [their] minds." In fairness, Blizzard only really had Lost Vikings and Warcraft in those relatively early years of the developer. It's actually Blizzard founder Mike Morhaime who is probably kicking himself more (financially speaking) now, as Kotick relays that Morhaime told him recently,"Yeah, could you imagine if I had just held out for the seven billion instead of the seven million?'"