Activision extends Dream deal

New pact covers 'Bee Movie,' 'Kung Fu Panda,' 'Madagascar 2'

By BEN FRITZ

Activision has pacted with DreamWorks Animation to make games based on its films through at least 2010.

Continuing the trend of vidgame publishers locking up top Hollywood properties in long-term deals, Activision has pacted with DreamWorks Animation to make games based on its films through at least 2010.

Multigame agreement is an extension of a current deal between the two companies that lasts through "Shrek 3" in early 2007.

Financial details weren't available, but similar long-term licensing deals for top Hollywood properties have included advances in the tens of millions, with more coin possible from royalties.

New pact covers the already-in-production "Bee Movie" and "Kung Fu Panda," scheduled for late 2007 and early 2008, respectively, as well as late 2008's "Madagascar 2" and in-development "Rex Havoc" and "How to Train Your Dragon," which will probably see release in 2009 if greenlit. Activision will also have rights to make a game based on a fourth "Shrek," which is likely to come in 2010.

With the vidgame business moving toward a model closer to Hollywood's in which big franchises drive profits, publishers have been snapping up long-term rights to the most valuable licenses. Activision recently extended its deal with Marvel to make "Spider-Man" and "X-Men" games through 2017. Electronic Arts this year signed long-term pacts for "The Lord of the Rings" and "The Simpsons," while THQ did the same for Pixar and Nickelodeon properties and Vivendi Universal Games acquired long-term rights to Robert Ludlum's spy books, including the "Bourne" franchise.

"The primary focus of our company is building original intellectual property, but with a few partners who have recognizable franchises, we can be confident it will be an effective partnership," Activision CEO Bobby Kotick said. "What we don't want is a deal that's speculative or doesn't give us ownership in the long term."

Regardless of whether companies renew their pacts again, Activision will have rights to make games based on pics in this deal and the last one.

In its first such move, publisher recently released "Shrek Superslam," a fighting game featuring characters from the film. A second "Madagascar" vidgame is likely to come before the film sequel is released.

Activision has already produced "Shrek 2," "Shark Tale" and "Madagascar" games, which have sold more than 10 million units in total.

Under its current deal, it is also producing games based on next year's "Over the Hedge" and 2007's "Shrek 3."

"We did have interest from some other publishers, but at the end of the day, Activision was enthusiastic about continuing the partnership, and we were pleased with the great work they have done," said DreamWorks Animation consumer products topper Anne Globe.

DreamWorks will license rights to "Flushed Away," coming out late next year, to a different vidgame company. It did the same for this year's "Wallace & Gromit," also an Aardman co-production.

Games under the new pact will be released for next-gen vidgame consoles Microsoft Xbox 360, Sony's PlayStation 3 and Nintendo Revolution. Those boxes enable much higher production values, which means Activision will be able to use more CG animation directly from the films.

Looking to further that goal, companies plan to share more resources as part of the new deal. Activision already has employees who work full time in Glendale, where DreamWorks Animation is headquartered, to collaborate with the toon studio.