Kotick: "People are happy with existing franchises, if you innovate within them"

Making videogames is all about balance, Activision's Bobby Kotick has said, with successful sequels being all about combining the familiarity of a trusted brand with "innovative and inspiring" new features.

Talking to The Economist, Kotick denied claims Activision doesn't innovate saying, "a small segment of very vocal gamers say everything has to be new and different every year. Actually, people are happy with existing franchises, provided you innovate within them."

Another balance, believes the CEO, is in building a company that combines people who are creative and entrepreneurial and people who know processes. When he first took control of Activision in 1991 he said he quickly realised it was important to maintain a creative environment for designers.

"In our business the key is that certain things lend themselves well to process, and certain things don't," he pointed out.

On the subject of Activision's merger with Vivendi, and its main asset Blizzard, Kotick pointed to the biggest coup within the deal - World of Warcraft. The subscription-based game, he said, "is the most stable form of profitable revenue in the industry."

But Activision's own brands - such as Tony Hawk and Guitar Hero - are broadening gaming's audience, he believes.

"We are seeing new audiences emerge because of the physical nature of the experience."

The exec said he has learnt not to impose his own views on what makes a playable game on his company's products - he used to tweak them to fit his own tastes, he admits - and now leaves such decisions to product managers.

He says the trick in creating a successful formula is not only through feedback and focus groups, but also in knowing which bits of feedback to ignore. "That’s the delicate balance," he added.