Activision acquires Castle Wolfenstein developer

Activision has announced that it has acquired Return to Castle Wolfenstein developer Gray Matter Interactive Studios. Under the terms of the agreement, the Los Angeles-based developer will become a wholly owned subsidiary of Activision. Gray Matter's Drew Markham will continue to manage the studio, and several key employees have signed long-term employment contracts with Activision.

"Activision has had a long-standing relationship with the principals at Gray Matter beginning in 1998 with the development of id Software's Quake II Mission Pack: The Reckoning,'' said Ron Doornink, president and COO of Activision. "Gray Matter's proven track record in creating some of the most memorable PC action games is aligned with Activision's strategy to acquire companies with a history of creating high-quality products that over time can enhance the company's financial operating model. Gray Matter has a very talented team of programmers, designers, and artists and we are confident that the studio's development strengths will further establish Activision as a leader in the PC action genre.''

Gray Matter Interactive Studios was founded by designers from Xatrix Entertainment, the studio that created Redneck Rampage and Kingpin.