Sierra Entertainment is a leading worldwide computer game developer, publisher and distributor active originally from 1979 to 2004, and reinstated in 2006 in the form of Sierra Online, a newly launched online gaming division of Vivendi. It is a large unit that is an umbrella for many traditional brands and beloved series. Sierra, as a company consists of: Sierra Online, Massive Entertainment, Swordfish Studios, Radical Entertainment and High Moon Studios. Sierra is headquarted in Los Angeles and is a part of the Vivendi Games group, which is part of Vivendi SA.
On-Line Systems, as Sierra Entertainment was originally named, was established in 1979 by Ken and Roberta Williams in their suburban Los Angeles, California home. Inspired by a text-based game written at MIT called Adventure, the husband and wife team began to think up new ways to expand upon that basic idea.
"I don't think we thought at the time about actually starting a software company...but it did cross my mind. 'It would be fun to try and write something like that...so I wrote up a design at the proverbial kitchen table...I drew all kinds of pictures," said Roberta.
Using a borrowed TRS-80 machine, the Williamses began to look through most of the games available at the time. Many were good, but none were able to offer more than textual descriptions of what was going on inside the game. Roberta began work on an idea for a game that would join text and pictures for the first time. It took just over a month for Ken to translate Roberta's hand-written game concept into the first graphic/text adventure, Mystery House. Available for the Apple II, it was text accompanied by a series of black and white line drawings. The Williams' second game, The Wizard and the Princess was in full color, and took full advantage of that machine's high-res capability.
Much of the distribution of Wizard was done by the Williams themselves. The home computer industry was in its infancy, so the first sales were done to individual customers and small computer hobby shops. Demand soon grew, fueled mainly by the popularity of the Apple II. Within a year, the Williams moved the company to Oakhurst, California and adopted the Sierra On-Line as the name for the new business. By the end of 1981, The Wizard and the Princess had sold over sixty-thousand copies.
Quest for the Crown is the tale of Sir Graham and his quest for three magical treasures that must be returned to the magical Kingdom of Daventry. The success of the original King's Quest (subsequently ported to other platforms) spurred them into creating numerous adventure game series based on the Quest theme.
In the years to come Sierra would remain on the forefront of groundbreaking computer game design, sometimes creating large blockbusters and other times, failed experiments. Sierra openly stated that their main rival is television and that their aim is to rescue young people from couch potato-ism.
In 1988 Sierra became a public company, selling shares under NasDaq and became Sierra On-Line Inc.
Starting in 1990, Sierra began acquiring other companies, including Dynamix (1990), BrightStar Technology (1992), Coktel Vision (1993) and Impressions Games (1995). Further acquisitions included Green Thumb Software (1995), SubLogic (1995) Arion Software (1995), Papyrus Design Group (1995), Berkeley Systems (1997), Books That Work (1997), PyroTechnix (1997) and Headgate (1997). Sierra also acquired the Pixellite Group in 1995 and with that acquisition came the rights to usePrint Artist, a computer publishing program which allowed users to make high quality picture prints, in 1995.
In 1991 Sierra started an online service called The Sierra Network. Pre-WWW, it was comparable to services like CompuServe or Prodigy except that its interface was completely graphical. Thematically, it was a cross between a kingdom and a theme park in which users could visit different "lands" to post on message boards, exchange emails and play games. Years ahead of its time, as a decade later MMORPG's would be dominating computer gaming sales. The Sierra Netork was renamed ImagiNation Network and sold in 1994 to AT&T, who sold it to AOL in 1996.
In 1994, Sierra moved its headquarters to Bellevue, Washington to attract more talent.
In July 1996, the company was sold to CUC International; Ken Williams stepped down as Chairman and CEO of Sierra shortly after the sale but remained with Sierra as an advisor and also with CUC as the head of its online sales division for another year before leaving the company entirely.
Bob Davidson was left in charge of Sierra after Williams left, but soon, Davidson too would leave CUC. Davidson had been given control of Sierra's sales, manufacturing and distribution departments and had shut down some of Sierra's creative groups, which led to initial disagreements between he, Ken Williams and CUC that played a part in William's eventual retirement. In April 1997, Sierra announced that the original facilities in Oakhurst would be reduced by half, causing 90 people employed in Sierra's operations departments (which included disk duplication and replacements) to be laid off.
In May 1997, CUC announced its plans to merge with HFS Incorporated which would form Cendant Corporation. After the merger was finalized in December 1997, Sierra became a part of Cendant Software, and business went on as usual...for a while. In April 1998, Cendant disclosed that CUC had falsified its books over the past decade, inflating its purported worth before the merger by over States dollar|US$" target="_blank" >*500 million. The president of CUC, Kirk Shelton, was subsequently convicted of 14 counts of fraud and related charges, sentenced to 10 years in prison, and fined US$3.27 billion; and the criminal trial of the CEO of CUC, Walter Forbes, is still underway as of October, 2005. Forbes had been on Sierra's board of directors and had suggested the CUC purchase in the first place.
Following disclosure of the fraud, Cendant's stock price dropped from $39 to $20, resulting in a loss of about $14 billion of its market capitalization in a single day.
Meanwhile, Sierra's management changed, and David Grenewetski, a talented businessman with a solid record with previous software companies, became Sierra's CEO. However, his name would come to be reviled among Sierra's fans for his bad business decisions which severely hurt the company in years to come.
After this shock, Sierra and the rest of Cendant Software which included Davidson & Associates and Knowledge Adventure, were sold again to French publisher Havas in November 1998, who in turn were soon acquired by French water conglomerateVivendi later the same month.
In 1998, the company was reorganized into five distinct groups:
Sierra's location in Oakhurst was renamed Yosemite Entertainment in 1998.
On February 22, 1999, a decision within Sierra under the leadership of David Grenewetski resulted in the shutdown of many Sierra development studios. Most shocking was the closing of Yosemite Entertainment. This day would later come to be known by Sierra fans as "Black Monday," or "Chainsaw Monday". The shutdown came with Sierra's announcement of a major reorganization of the company. Other development groups within Sierra such as PyroTechnix, Books That Work Inc., and Synergistic were shut down that day. About 250 were laid off due to these changes.
Another reorganization of divisions within Sierra came in 1999, this time to "Core Games" (Sierra Studios), Sierra Sports (Sierra Attractions), and Casual Entertainment (Sierra Home). 105 more employees were laid off as a result. Around this time, Sierra also changed from being a major developer of computer games to being a major publisher of games (for independent companies).
Sierra Entertainment continued to develop and publish successful interactive entertainment products, and hits such as Half Life 2 and Empire Earth only cemented Sierra’s history as a consistently successful company. With over 300 employees, Sierra, though only a shadow of it’s former glory, was still a major player in the gaming industry.
On Aug 14 2001, Sierra On-Line announced the final closure of their Dynamix development studio, resulting in 97 people losing their jobs. The cuts at this development group were viewed by many as being the final nail in the coffin for the Sierra of the past.
Dynamix had developed a lot of memorable titles for Sierra but had been in financial trouble for many years, and in the touch business climate after the Cendant scandal which had reduced the profitability of its software unit, there was no place for unprofitable development studios anymore, even if they were popular among fans.
A further 148 people at the main offices in Bellevue lost their jobs on August 15, and many of those people were employed in Sierra’s marketing, administrative, and legal divisions. Those functions, along with Sierra’s customer service and technical support divisions, would now be handled by Vivendi Publishing employees at their offices in Los Angeles.
With all these cuts, Sierra was moving further and further away from being a strong, independent organization to becoming just a brand name of Vivendi Universal. These layoffs left Sierra with 330 people at Bellevue, and about 175 others spread out across other locations.
On February 19, 2002, Sierra On-Line officially announced the change of their name to Sierra Entertainment, Inc. They claimed the new name would "Reflect the company's commitment to developing a broad range of entertainment products, including games for both the PC and next-generation consoles." (Quote from official press release.)
2004 came with a few short strokes due to Sierra's parent company Vivendi’s financial troubles: Impressions Games and the Papyrus Design Group were shut down in the spring, and about 50 people lost their jobs in those cuts; 180 Sierra-related positions were eliminated at Vivendi’s Los Angeles offices; and finally in June of 2004, VU Games laid off Sierra’s final employees at Bellevue, which cost 111 people their jobs and shifted Sierra’s work to other VU Games divisions. The Bellevue facilities were shutdown in August. In total, about 350 people lost their jobs.
After those cuts, which brought mixed emotions to many of Sierra's fans, Vivendi announced that the Sierra brand name and logotype would still be used on Vivendi Games products.
However in 2006, Vivendi announced the formation of a new division of the company, Sierra Online, which is focused on the popular online gaming genre. In June 2006, the Sierra website was revamped which listed Massive Entertainment, Swordfish Studios, Radical Entertainment and High Moon Studios as being Sierra development groups.
Sierra and its development studios continue to be very successful with games such as 50 Cent: Bullet Proof, SWAT 4, and Spyro the Dragon.
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