Sierra Entertainment, Inc. (formerly On-Line Systems and Sierra On-Line, Inc.) was an American
video game developer
A video game developer is a software developer specializing in video game development – the process and related disciplines of creating video games. A game developer can range from one person who undertakes all tasks to a large business with em ...
and
publisher
Publishing is the activities of making information, literature, music, software, and other content, physical or digital, available to the public for sale or free of charge. Traditionally, the term publishing refers to the creation and distribu ...
founded in 1979 by
Ken and
Roberta Williams. The company is known for pioneering the
graphic adventure game genre, including the first such game, ''
Mystery House''. It is known for its graphical adventure game series ''
King's Quest'', ''
Space Quest'', ''
Police Quest'', ''
Gabriel Knight'', ''
Leisure Suit Larry'', and ''
Quest for Glory'', and as the original publisher of
Valve
A valve is a device or natural object that regulates, directs or controls the flow of a fluid (gases, liquids, fluidized solids, or Slurry, slurries) by opening, closing, or partially obstructing various passageways. Valves are technically Pip ...
's ''
Half-Life Half-life is a mathematical and scientific description of exponential or gradual decay.
Half-life, half life or halflife may also refer to:
Film
* Half-Life (film), ''Half-Life'' (film), a 2008 independent film by Jennifer Phang
* ''Half Life: ...
'' series.
After seventeen years as an independent company, Sierra was acquired by
CUC International
CUC (Comp-U-Card) International Inc. was a membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based in Stamford, Connect ...
in February 1996 to become part of
CUC Software. However, CUC International was caught in an accounting scandal in 1998, and many of the original founders of Sierra including the Williamses left the company. Sierra remained as part of CUC Software as it was sold and renamed several times over the next few years. Sierra was formally disestablished as a company and reformed as a
division of this group in August 2004. The former CUC Software group was acquired by
Vivendi and branded as
Vivendi Games in 2006. The Sierra division continued to operate through Vivendi Games's merger with
Activision
Activision Publishing, Inc. is an American video game publisher based in Santa Monica, California. It serves as the publishing business for its parent company, Activision Blizzard, and consists of several subsidiary studios. Activision is one o ...
to form
Activision Blizzard
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. Activision Blizzard currently includes three operating units: Activision, Blizzard Entertainment and King (company), King.
Founded in July 2 ...
on July 10, 2008, but was shut down later that year. The Sierra brand was revived by Activision in 2014 to re-release former Sierra games and some independently developed games.
Currently, the Sierra brand is under
Microsoft
Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
's ownership through its
gaming division, following the
acquisition of Activision Blizzard.
History
Founding as On-Line Systems (1979–1982)
Sierra Entertainment was founded in 1979 as On-Line Systems in
Simi Valley, California
Simi Valley (; Chumashan languages, Chumash: ''Shimiyi'') is a city in Simi Valley (valley), the valley of the same name in southeastern Ventura County, California, United States. It is from Downtown Los Angeles, making it part of the Greater ...
, by the husband-and-wife duo
Ken and
Roberta Williams. Ken, a programmer for
IBM
International Business Machines Corporation (using the trademark IBM), nicknamed Big Blue, is an American Multinational corporation, multinational technology company headquartered in Armonk, New York, and present in over 175 countries. It is ...
, had planned to use the company to create business software for the
TRS-80
The TRS-80 Micro Computer System (TRS-80, later renamed the Model I to distinguish it from successors) is a desktop microcomputer developed by American company Tandy Corporation and sold through their Radio Shack stores. Launched in 1977, it is ...
and
Apple II
Apple II ("apple Roman numerals, two", stylized as Apple ][) is a series of microcomputers manufactured by Apple Computer, Inc. from 1977 to 1993. The Apple II (original), original Apple II model, which gave the series its name, was designed ...
.
Ken had brought a Teleprinter, teletype terminal home one day in 1979 and, while looking through the host system's software catalog, discovered the text adventure ''Colossal Cave Adventure''.
He encouraged Roberta to join him in playing it, and she was enthralled by the game. After Ken had brought an Apple II to their home, she played through other text adventures such as those by
Scott Adams and
Softape to study them.
Dissatisfied with the text-only format, she realized that the graphics display capability of the Apple II could enhance the adventure gaming experience. With Ken's help in some of the programming, Roberta designed ''
Mystery House'', inspired by the novel ''
And Then There Were None
''And Then There Were None'' is a mystery fiction, mystery novel by the English writer Agatha Christie, who described it as the most difficult of her books to write. It was first published in the United Kingdom by the Collins Crime Club on 6 N ...
'' and the board game ''
Clue'', using text commands and printout combined with rudimentary graphics depicting the current setting.

''Mystery House'' was released through mail-order in May 1980. It was an instant hit with about 15,000 copies sold, earning . It is the first computer adventure game to have graphics, although made with crude, static, monochrome, line drawings. The two shifted the focus to developing more graphical adventure games. ''Mystery House'' became the first in the ''Hi-Res Adventure'' series.
The ''Hi-Res Adventure'' series continued with ''
Mission Asteroid'', which was released as ''Hi-Res Adventure #0'' though being the second release. The next release, ''
Wizard and the Princess'', also known as ''Adventure in Serenia'', is considered a prelude to the later ''King's Quest'' series in both story and concept. Through 1981 and 1982, more games were released in the series including ''
Cranston Manor'', ''
Ulysses and the Golden Fleece'', ''
Time Zone
A time zone is an area which observes a uniform standard time for legal, Commerce, commercial and social purposes. Time zones tend to follow the boundaries between Country, countries and their Administrative division, subdivisions instead of ...
'', and ''
The Dark Crystal
''The Dark Crystal'' is a 1982 dark fantasy, dark fantasy film directed by Jim Henson and Frank Oz. It stars the voices of Stephen Garlick, Lisa Maxwell (actress), Lisa Maxwell, Billie Whitelaw, Percy Edwards, and Barry Dennen. The film was prod ...
''. A simplified version of ''The Dark Crystal'', intended for a younger audience, was written by
Al Lowe and released as ''Gelfling Adventure''.
Rebranding to Sierra On-Line (1982–1988)

On-Line Systems was renamed Sierra On-Line in 1982, and moved to
Oakhurst, California
Oakhurst (formerly Fresno Flats) is a census-designated place (CDP) in Madera County, California, located in the foothills of the Sierra Nevada approximately south of the entrance to Yosemite National Park. Positioned at the junction of Californ ...
. The "Sierra" name was taken from the
Sierra Nevada
The Sierra Nevada ( ) is a mountain range in the Western United States, between the Central Valley of California and the Great Basin. The vast majority of the range lies in the state of California, although the Carson Range spur lies primari ...
mountain range that Oakhurst was near, and its new logo incorporated the imagery of
Half Dome mountain. By early 1984, ''InfoWorld'' estimated that Sierra was the world's 12th-largest microcomputer software company, with in 1983 sales. It produced some non-game software, such as an
Applesoft BASIC compiler
In computing, a compiler is a computer program that Translator (computing), translates computer code written in one programming language (the ''source'' language) into another language (the ''target'' language). The name "compiler" is primaril ...
.
The company weathered the
video game crash of 1983 with only a 20% increase in sales, after analysts in 1982 had predicted a doubling in 1983 of the entire software market. The company had spent much of 1983 developing for the
VIC-20 and the
TI-99/4A which were both obsolete by the end of the year. Ken Williams was reportedly described as "bewildered by the pace at which computers come into and fall out of favor", and Williams said, "I've learned my lesson. I'm not moving until I understand the market better."
Many of Sierra's best known series began in the 1980s. In 1983, Sierra On-Line was contacted by IBM to create a game for the new
PCjr. IBM offered to fund the entire development and marketing of the game, paying royalties. Ken and Roberta Williams accepted and started on the project. Roberta Williams created a story featuring classic fairy-tale elements. Her game concept includes animated color graphics, a pseudo 3D-perspective where the main character is visible on the screen, a more competent text parser that understands advanced commands from the player, and music playing in the background through the PCjr sound hardware. For the game, a complete development system called
Adventure Game Interpreter (AGI) was developed. In mid-1984, ''
King's Quest: Quest for the Crown'' was released to much acclaim, beginning the ''
King's Quest'' series.

While finishing ''
The Black Cauldron'', programmers
Mark Crowe and
Scott Murphy began to plan for an adventure game of their own. After a simple demonstration to Ken Williams, he allowed them to start working on the full game, which was named ''
Space Quest: The Sarien Encounter''. The game was released in October 1986 as an instant success, spawning many sequels in the ''
Space Quest'' series in the following years.
Al Lowe, who had been working at Sierra On-Line for many years, was asked by Ken Williams to write a modern version of
Chuck Benton's ''
Softporn Adventure'' from 1981, the only pure text adventure that the company had ever released. ''
Leisure Suit Larry in the Land of the Lounge Lizards'' was a great hit and won the
Software Publishers Association's Best Adventure Game award of 1987. It can be deduced that the game first became famous as an early example of software piracy, as Sierra sold many more hintbooks than actual copies of the game. A series of ''
Leisure Suit Larry'' games followed.
Ken Williams befriended a retired highway patrol officer named
Jim Walls and asked him to produce an adventure series based on a police theme. Walls proceeded to create ''
Police Quest: In Pursuit of the Death Angel'', which was released in 1987. Several sequels followed, and
the series was touted for adherence to police protocol (relevant parts of which were explained in the games' manuals), and presenting some real-life situations encountered by Walls during his career as an officer.
''
Quest for Glory'' is a series of hybrid adventure/role-playing video games designed by Corey and
Lori Ann Cole. The first game in the series, ''
Quest for Glory: So You Want to Be a Hero'', was released in 1989. The series combines humor, puzzle elements, themes and characters borrowed from various legends, puns, and memorable characters, creating a five-part series of the Sierra stable. Although the series was originally titled ''Hero's Quest'', Sierra failed to trademark the name. Milton Bradley successfully trademarked an electronic version of their unrelated joint Games Workshop board game, ''
HeroQuest,'' which forced Sierra to change the series' title to ''Quest for Glory''. This decision caused all future games in the series, including newer releases of ''Hero's Quest I'', to switch to the new name.
In 1987, Sierra On-Line started to publish its own gaming magazine, about its upcoming games and interviews with the developers. The magazine was initially named ''The Sierra Newsletter'', ''The Sierra News Magazine'', and ''The Sierra/Dynamix Newsmagazine''. However, since
Sierra Club
The Sierra Club is an American environmental organization with chapters in all 50 U.S. states, Washington, D.C., Washington D.C., and Puerto Rico. The club was founded in 1892, in San Francisco, by preservationist John Muir. A product of the Pro ...
already published a magazine called ''Sierra Magazine'', the name of the magazine published by Sierra On-Line was changed to ''InterAction'' in 1991. It was discontinued in 1999.
Sierra's Adventure Game Interpreter engine, introduced with ''King's Quest'', was replaced in 1988 with Sierra's Creative Interpreter in ''King's Quest IV''. The game was released under both engines, so those who had newer computers could use the new engine and better rendering technology.
Going public (1989–1995)

Sierra became a
public company
A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...
in 1989, trading on the
NASDAQ
The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
under the stock ticker "SIER". Additional public investment allowed the company to engage in further acquisitions over the next several years.
In 1990, Sierra released ''
King's Quest V'', the first Sierra On-Line game ever to have more than 500,000 copies sold and the highest selling game for five years. It won several awards, such as the Best Adventure Game of the Year from both the
Software Publishers Association and ''
Computer Gaming World
''Computer Gaming World'' (CGW) was an American Video game journalism, computer game magazine that was published between 1981 and 2006. One of the few magazines of the era to survive the video game crash of 1983, it was sold to Ziff Davis in 199 ...
'' magazine.
The Sierra Network was launched on May 6, 1991, as the first game-only online environment.
Development of the network began in 1989, as Ken Williams was inspired by the launch of the
Prodigy service in 1988 to create something similar for Sierra's games. As a free service other than access use charges, the network provided a "land-based" precursor to MMORPGs and internet chat rooms, each land theme for the type of content provided multi-player gaming and category based bulletin boards and chat rooms throughout the continental United States. By July 1993, having reached about 40,000 subscribers,
AT&T
AT&T Inc., an abbreviation for its predecessor's former name, the American Telephone and Telegraph Company, is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the w ...
announced a plan to invest into the network and add more games, gaining partial control as part of its expansion into the growing online services. AT&T later took sole possession of the network on November 15, 1994, so the name was changed to the ImagiNation Network.
The network failed to find a mass audience, and was sold to
America On-Line in 1996.
In 1991, Sierra released the first game in the ''
Dr. Brain'' series, ''
Castle of Dr. Brain'', a hybrid puzzle adventure education game, which has several sequels. In 1993, ''
Gabriel Knight: Sins of the Fathers'' was released, beginning the ''
Gabriel Knight'' series. The game and subsequent sequels were critically acclaimed in the mainstream press at the time.
Sierra and
Broderbund started merger discussions in March 1991, but the idea was discontinued later that month.
Sierra needed a new building due to growth, and moved its headquarters and much of its key staff to
Bellevue, Washington
Bellevue ( ) is a city in the Eastside (King County, Washington), Eastside region of King County, Washington, United States, located across Lake Washington from Seattle. It is the third-largest city in the Seattle metropolitan area, and the f ...
. Sierra's original location in Oakhurst was later renamed Yosemite Entertainment, and continued under that name until closing in early 1999.
The company was now made up of five separate and largely autonomous development divisions: Sierra Publishing, Sierra Northwest,
Dynamix,
Bright Star Technology, and
Coktel Vision, with each group working separately on product development but sharing manufacturing, distribution, and sales resources.
1995 was a successful year for the company. Sierra was the market-share leader in PC games for the year. With $83.4 million in sales from software-publishing, earnings improved by 19 percent, and a net income of $11.9 million. In June, Sierra and
Pioneer Electric Corp. signed an agreement to create a joint venture that would develop, publish, manufacture, and market entertainment software for the Japanese software market. This joint venture created a new company called Sierra Venture. With Sierra and Pioneer investing over $12 million, the new company immediately manufactured and shipped over twenty of Sierra's most popular products to Japan and created new titles for the Japanese market. 1995 also saw Sierra acquiring a number of development companies, both small home developers and larger companies.
''
Phantasmagoria'' was by far the largest project ever undertaken by Sierra. The anticipation for the game was high at release in late 1995. Although nearly one million copies were sold when the game was first released in August 1995, Sierra's bestselling adventure game created, the game received mixed reviews from industry critics.
Sale to CUC International (1996–1998)
In February 1996, early e-commerce pioneer
CUC International
CUC (Comp-U-Card) International Inc. was a membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based in Stamford, Connect ...
, seeking to expand into interactive entertainment, offered to buy Sierra at a price of about .
Walter Forbes, the CEO of CUC International, and a member of Sierra's own Board of Directors since 1991, surprised Ken Williams with the deal after a board meeting. At this time, Sierra had modest revenues of about in the current fiscal year, so the sum surprised Ken. Forbes had posited the idea to Ken that this would be the start of a large company eventually to bring in
LucasArts Entertainment,
Broderbund, and
Davidson & Associates (which at the time owned
Blizzard Entertainment
Blizzard Entertainment, Inc. is an American video game developer and Video game publisher, publisher based in Irvine, California, and a subsidiary of Activision Blizzard. Originally founded in 1991, the company is best known for producing the h ...
) under one entity and be a major publisher in the video game industry, as a great boon to the Williams and to Sierra's shareholders. Roberta had expressed her concerns about the offer to Ken and to executive officers, but he remained interested in the potential that Forbes offered.
Ken accepted the offer, believing it was in the best interest for Sierra's future and stockholders, and CUC announced by the end of February 1996 the beginning of closing the acquisition of both Sierra and Davidson for and in CUC stock, respectively. The deal to obtain LucasArts and Broderbund failed.
Sierra's acquisition closed on July 24, 1996.
The terms included naming Ken Williams a vice-chairman of CUC International, a Member of the Office of the President of CUC, and that he would remain responsible for Sierra's R&D and remain Sierra's CEO. He also requested creation of a "software board" consisting of him, Michael Brochu (Sierra's President and COO), Bob Davidson (founder and CEO of
Davidson & Associates), and Forbes. It functioned as a governing body of what would become CUC Software, regulating major decisions and product lines.
In September 1996, CUC announced consolidation of some functions of its game companies into a single company called CUC Software Inc., headquartered in
Torrance, California
Torrance is a coastal city in the Los Angeles metropolitan area located in southwestern Los Angeles County, California, United States. The city is part of what is known as the South Bay (Los Angeles County), South Bay region of the metropolitan ...
. Bob Davidson, founder and CEO of Davidson & Associates became the CEO for the publishing body. CUC Software consolidated manufacturing, distribution, and sales resources of all of divisions including what was to become Sierra, Davidson, Blizzard, Knowledge Adventure, and Gryphon Software.
CUC Software utilized its various labels' market specialties. For example, in October 1996, Sierra published ''
Stay Tooned!'', an adventure game developed by Funnybone Interactive (a subsidiary of Davidson & Associates) as Sierra was more known as an adventure game publisher than Davidson.
In November 1996, Ken Williams met with the founders of
Valve
A valve is a device or natural object that regulates, directs or controls the flow of a fluid (gases, liquids, fluidized solids, or Slurry, slurries) by opening, closing, or partially obstructing various passageways. Valves are technically Pip ...
and negotiated Sierra's exclusive rights to publish
''Half-Life'', which Ken Williams debuted at
E3 in May 1997. In December 1996, Sierra released ''
The Realm Online'', an online fantasy role-playing game.
After the sale, Ken Williams remained within the software division so that he could provide strategic guidance to Sierra, although he began to grow disillusioned as he soon found that his new titles at CUC meant very little and the software board met only once. He began disputes with Davidson over Davidson's conservative management style and his disdain for Sierra's more risque product lines such as ''
Phantasmagoria'' and ''
Leisure Suit Larry''.
In January 1997, Davidson stepped down as CEO of CUC Software, and CUC Executive Chris MacLeod was named as his replacement. After this, Ken Williams shifted his focus work on CUC's online product distributor,
NetMarket while remaining as CEO of Sierra in name only. In November, Ken Williams departed from CUC International, while Roberta Williams remained with Sierra until the release of ''
King's Quest: Mask of Eternity'' in December 1998. Brochu, who had been hired in 1995 by Ken Williams, to handle the daily business affairs of Sierra, replaced Ken Williams and remained as President of Sierra until October 1997, when he too departed the company.
In April 1997, to further expand upon their role in the edutainment business, Sierra purchased Books That Work and
CUC International
CUC (Comp-U-Card) International Inc. was a membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based in Stamford, Connect ...
purchased
Berkeley Systems
Berkeley Systems was a San Francisco Bay Area software company co-founded in 1987 by Wes Boyd and Joan Blades. It made money early on by performing contract work for the National Institutes of Health, specifically in making modifications to th ...
and transferred management of the studio to Sierra as an internal developer.
In December 1997, in order to secure the rights to ''
Return to Krondor'', Sierra purchased PyroTechnix, who were developing the game.
On November 5, 1997, after the departure of Brochu in October, Sierra was split into three business units, all of which reported directly to MacLeod.
In 1998, Sierra divided into 5 sub-brands and corporate divisions:
* Sierra Attractions (for casual games such as poker) - composed of Berkeley Systems
* Sierra Home (for home/lifestyle software) - composed of Sierra's gardening, home design, and cooking software divisions
* Sierra Sports (For sports games) - composed of Dynamix's Sports Titles, Synergistic Software, and Papyrus
* Sierra Studios (general publishing division) - Composed of Sierra Northwest/Bellevue, Pyrotechnix, and Impressions Software
* Sierra FX (adventure games and online multiplayer games) - Based at Sierra's old headquarters in Oakhurst, which was publicly referred to as Yosemite Entertainment.
On November 24, 1997, Sierra published ''
Diablo: Hellfire'', the official expansion pack for the widely popular game ''
Diablo'' developed by
Synergistic Software
Synergistic Software was a video game developer based in Seattle. Founded in 1978, the company published some of the earliest available games and applications for the Apple II family of computers. They continued developing games for various platf ...
, a division of Sierra.
On November 19, 1998, Sierra published
''Half-Life'' for the PC, developed by
Valve
A valve is a device or natural object that regulates, directs or controls the flow of a fluid (gases, liquids, fluidized solids, or Slurry, slurries) by opening, closing, or partially obstructing various passageways. Valves are technically Pip ...
, which became a huge success.
During these events, CUC merged with
Henry Silverman's
HFS Incorporated in December 1997 and became the
Cendant Corporation. The merger did not immediately affect operations of Sierra.
However, Silverman, who served as CEO of Cendant, had become more involved with the bookkeeping of the merged companies and noticed irregularities from CUC's past bookkeeping, leading to the discovery of
massive accounting fraud at CUC in March 1998. Forbes was later convicted on three charges related to fraud by the
Security and Exchange Commission in 2007.
With the news, Cendant announced intention to sell the computer entertainment division, and on November 20, 1998, announced the sale of the consumer software division to
Paris
Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
-based
Havas S.A. Sierra became a part of Havas Interactive, the interactive entertainment division of the company.
Fallout from CUC's acquisition (1999–2003)
On Monday, February 22, 1999, Sierra announced a major reorganization of the company, resulting in the shutdown of several of their development studios, cutbacks on others and the relocation of key projects, and employees from those studios, to Bellevue. This event came to be known by fans and employees of Sierra as "Chainsaw Monday"—a nickname coined by Scott Murphy, who had been laid off over a month prior. About 250 people in total lost their jobs. Development groups within Sierra such as PyroTechnix were shut down. Others such as Books That Work were relocated to Bellevue. Also shut down was Yosemite Entertainment, the division occupying the original headquarters of Sierra On-Line. The company sold the rights of
Headgate Studios back to the original owner. With the exception of the warehouse and distribution department, the entire studio was shut down. Game designers
Al Lowe and
Scott Murphy were laid off. Lowe had just started work on ''Leisure Suit Larry 8''. Murphy was involved in a ''Space Quest 7'' project at the time. Layoffs continued on March 1, when Sierra terminated 30 employees at the previously unaffected Dynamix, or 15 percent of their workforce.
Despite the layoffs, Sierra continued to publish games for smaller development houses. In September 1999, they released ''
Homeworld'', a real-time space-combat strategy game developed by
Relic Entertainment
Relic Entertainment Inc. (formerly known as THQ Canada Inc.) is a Canadian video game developer based in Vancouver, founded in 1997. The studio specializes in real-time strategy games and is known for series such as '' Homeworld'', '' Warhammer 4 ...
. The game design was revolutionary for the genre, and the game received great critical acclaim and many awards.
UK-based game developer and publisher
Codemasters, in an effort to establish themselves in the United States, announced the launch of a new development studio in Oakhurst, using the abandoned Sierra facilities and hiring much of the Yosemite Entertainment's laid-off staff in mid-September 1999. In early October, the company announced plans to take over management and maintenance of the online RPG
''The Realm'' and acquiring the complete yet previously canceled ''Navy SEALs''. The company also reported they obtained the rights to continue using the name Yosemite Entertainment for the development house.
Meanwhile, Sierra announced another reorganization, this time into three business units: Core Games, Casual Entertainment, and Home Productivity. This reorganization resulted in even more layoffs, eliminating 105 additional jobs and a number of games in production. After 1999, Sierra almost entirely ceased to be a
developer of games and, as time went on, instead became a
publisher
Publishing is the activities of making information, literature, music, software, and other content, physical or digital, available to the public for sale or free of charge. Traditionally, the term publishing refers to the creation and distribu ...
of games by independent developers.
At the end of June 2000, a strategic business alliance between
Vivendi,
Seagram
The Seagram Company Ltd. (which trade name, traded as Seagram's) was a Canadian multinational beverage and during the last few years of its existence, entertainment Conglomerate (company), conglomerate formerly headquartered in Montreal, Quebec. ...
, and
Canal+ was announced, and
Vivendi Universal, a leading global media and communications company, was formed after the merger with
Seagram
The Seagram Company Ltd. (which trade name, traded as Seagram's) was a Canadian multinational beverage and during the last few years of its existence, entertainment Conglomerate (company), conglomerate formerly headquartered in Montreal, Quebec. ...
(the parent company of
Universal Studios Universal Studios may refer to:
* Universal Studios, Inc., an American media and entertainment conglomerate
** Universal Pictures, an American film studio
** Universal Studios Lot, a film and television studio complex
* Various theme parks operat ...
). Havas S.A. was renamed Vivendi Universal Publishing and became the publishing division of the new group, divided into five groups: games, education, literature, health, and information. The merger was followed by many more layoffs of Sierra employees.
In August 2001, Sierra announced a major reorganization, which included the closure of
Dynamix as well as the layoffs of 148 employees located at the company headquarters in Bellevue.
On February 19, 2002, Sierra On-Line officially announced the name change to Sierra Entertainment, Inc.
In 2002, Sierra, working with High Voltage Software, announced the development of a new chapter in the Leisure Suit Larry franchise, titled ''
Leisure Suit Larry: Magna Cum Laude''. Released to mostly mixed to negative reviews; Larry's creator, Lowe, was not involved with the project.
The newly renamed Sierra Entertainment continued to develop mostly unsuccessful interactive entertainment products. However, hit ''
Homeworld 2'' once again cemented Sierra's reputation as a respectable publisher.
In 2003, Sierra Entertainment released the second video game adaptation of ''
The Hobbit'', as well as ''
NASCAR Racing 2003 Season''.
Acquisition and absorption under Vivendi Games (2004–2008)

In early 2004, cost-cutting measures were taken at Sierra's parent company
Vivendi Universal Games due to financial troubles and because of Sierra's lack of profitability as a working developer. Sierra's last owned studios
Impressions Games and the
Papyrus Design Group were both shut down in early 2004, laying off 50 people; 180 Sierra-related positions were eliminated at Vivendi's Los Angeles offices; and by June 2004, Vivendi had completely shut down Sierra's Bellevue location, laid off more than 100 employees, dispersed Sierra's work to other VU Games divisions, and re-located the remains of Sierra's assets to Vivendi's corporate headquarters in
Fresno, California
Fresno (; ) is a city in the San Joaquin Valley of California, United States. It is the county seat of Fresno County, California, Fresno County and the largest city in the greater Central Valley (California), Central Valley region. It covers a ...
. In total, 350 people were laid off. Some assets were retired in the process, including
Print Artist, and some like the ''Hoyle'' franchise were sold to other publishers or developers. Sierra was simply a publishing label and brand name for Vivendi assets, being used in tandem with its own name for publishing. As a company, Sierra was disestablished on August 24, 2004.
The business continued to operate as a division of Vivendi Games.
In late 2005, the Sierra brand was re-launched from Los Angeles. A new subsidiary called Sierra Online (no-relation to Sierra's former name Sierra On-Line) was also founded within this time, which focused on downloadable and online-only games.
Throughout 2005 and 2006, Vivendi acquired several game development studios including
Massive Entertainment,
High Moon Studios
High Moon Studios, Inc. (formerly Sammy Entertainment Inc. and Sammy Studios, Inc.) is an American video game developer initially formed in 2001. After nearly a year as an independent studio, the developer was acquired by Vivendi Games in Janua ...
,
Radical Entertainment, Secret Lair Studios / Studio Ch'in (based in Seattle and Shanghai) and
Swordfish Studios and integrated them into Sierra, alongside the creative licenses from other Vivendi divisions and from companies partnered with Vivendi and the copyrights of several notable
intellectual properties, such as ''
Crash Bandicoot'', ''
Spyro the Dragon'', ''
50 Cent: Bulletproof'' and ''
Scarface''. Vivendi also ceased publishing under their own name by this point after their name change, with all major releases being under the Sierra brand name.
''
Caesar IV
''Caesar IV ''is a city-building game set in ancient Rome, developed by Tilted Mill Entertainment and published by Sierra Entertainment ( Vivendi Universal Games). The game was released on September 26, 2006, in North America. The game featur ...
'' was published September 26, 2006, in North America, in partnership with
Tilted Mill Entertainment
Tilted Mill Entertainment is a video game developer located in Winchester, Massachusetts. It was founded in 2002 by former Impressions Games lead designer and general manager Chris Beatrice, business manager Peter Haffenreffer, and designer Jef ...
.
In mid 2007, Sierra Online began launching Xbox Live Arcade games for the Xbox 360. One of the first releases is the conversion of the successful "German-style" board game ''
Carcassonne
Carcassonne is a French defensive wall, fortified city in the Departments of France, department of Aude, Regions of France, region of Occitania (administrative region), Occitania. It is the prefectures in France, prefecture of the department.
...
'', which had been in development at Secret Lair Studios.
In late 2007, Sierra released games like the
first-person shooter
A first-person shooter (FPS) is a video game genre, video game centered on gun fighting and other weapon-based combat seen from a First person (video games), first-person perspective, with the player experiencing the action directly through t ...
game ''
TimeShift'' (which was originally going to be published by
Atari
Atari () is a brand name that has been owned by several entities since its inception in 1972. It is currently owned by French holding company Atari SA (formerly Infogrames) and its focus is on "video games, consumer hardware, licensing and bl ...
but was delayed various times during development) and the
real-time tactical video game ''
World in Conflict''.
Closure and sale of properties (2008–2009)
In 2008, Sierra Entertainment's parent company Vivendi Games merged with video game publisher
Activision
Activision Publishing, Inc. is an American video game publisher based in Santa Monica, California. It serves as the publishing business for its parent company, Activision Blizzard, and consists of several subsidiary studios. Activision is one o ...
to form
Activision Blizzard
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. Activision Blizzard currently includes three operating units: Activision, Blizzard Entertainment and King (company), King.
Founded in July 2 ...
. Vivendi Games was absorbed into Activision after the merger and the ownership of Sierra properties went to Activision. Later that year, Sierra was closed down for possible future sale. Leading up to the merger, Activision's management was confident that Sierra would cease operations post-merger.
On July 29, 2008, Activision announced a long-term strategy for its library of Sierra games and announced that they would only publish five titles: ''
Crash: Mind Over Mutant'', ''
The Legend of Spyro: Dawn of the Dragon'', ''
Prototype
A prototype is an early sample, model, or release of a product built to test a concept or process. It is a term used in a variety of contexts, including semantics, design, electronics, and Software prototyping, software programming. A prototype ...
'', and ''
Ice Age: Dawn of the Dinosaurs'', and an unannounced new property. The rest of the properties, including the Sierra Online division, were deemed by the company to be "non-strategic" with its then-current business practices. A selection of earlier sales and reversions followed:
* July 30, 2008 - The video game rights to the
Robert Ludlum
Robert Ludlum (May 25, 1927 – March 12, 2001) was an American author of 27 Thriller (genre), thriller novels, best known as the creator of Jason Bourne from the original ''Bourne (novel series), The Bourne Trilogy'' series. The number of copi ...
/''
Bourne'' franchise reverted back to Robert Ludlum's estate through their Ludlum Entertainment subsidiary. Ludlum subsequently licensed these rights to
Electronic Arts
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. Founded in May 1982 by former Apple Inc., Apple employee Trip Hawkins, the company was a pioneer of the early home computer game industry ...
in February 2009.
* August 6, 2008 - Activision announced they have put
Massive Entertainment up for sale, citing their disinterest in owning a European strategy developer, and that they were likely to sell ''
World in Conflict'' and its dropped expansion pack ''
Soviet Assault'' separately.
Swordfish Studios was also put up for sale.
* August 13, 2008 - The video game licensing rights to ''
Scarface'', including a planned sequel to ''
Scarface: The World is Yours'', reverted back to
Universal Pictures
Universal City Studios LLC, doing business as Universal Pictures (also known as Universal Studios or simply Universal), is an American filmmaking, film production and film distribution, distribution company headquartered at the 10 Universal Ci ...
.
* September 8, 2008 -
Warner Bros. Interactive Entertainment acquired the ''
F.E.A.R.
''F.E.A.R.'' is a first-person shooter Horror game#Psychological horror, psychological horror video game series created by Craig Hubbard in 2005. Released on Microsoft Windows, Windows, PlayStation 3, and Xbox 360, there are three main games i ...
'' trademark as well as the original title, consisting of the
base game and its outsourced expansion packs ''
Extraction Point'' and ''
Perseus Mandate''. The purchase of the trademark allowed
Monolith Productions, who developed the original game, to rename its upcoming sequel ''
Project Origin'' as ''F.E.A.R. 2: Project Origin''.
* October 8, 2008 - Activision announced the closure of the online servers of several older Sierra games on November 1. The Sierra Online division was also closed within that period despite the fact that two more games would be published under that name in 2009.
* October 13, 2008 -
THQ picked up the rights to ''
50 Cent: Blood on the Sand''.
* October 30, 2008 -
Infogrames, the parent company of
Atari
Atari () is a brand name that has been owned by several entities since its inception in 1972. It is currently owned by French holding company Atari SA (formerly Infogrames) and its focus is on "video games, consumer hardware, licensing and bl ...
, purchased publishing rights to ''
Ghostbusters: The Video Game'' and ''
The Chronicles of Riddick: Assault on Dark Athena'', and secured licensing rights from Sony and Universal respectively for future titles using both licenses.
* November 11, 2008 -
Ubisoft
Ubisoft Entertainment SA (; ; formerly Ubi Soft Entertainment SA) is a French video game publisher headquartered in Saint-Mandé with development studios across the world. Its video game franchises include '' Anno'', '' Assassin's Creed'', ' ...
purchased
Massive Entertainment, in addition to purchasing the rights to ''
World in Conflict'' .
* November 12, 2008 - Monumental Games purchased Swordfish Studios' Manchester development studio.
* November 15, 2008 -
Codemasters purchased Swordfish Studios' remaining studio in Birmingham.
* December 12, 2008 -
Electronic Arts
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. Founded in May 1982 by former Apple Inc., Apple employee Trip Hawkins, the company was a pioneer of the early home computer game industry ...
purchased publishing rights to ''
Brütal Legend''.
* February 2009 -
Codemasters purchased the ''
Leisure Suit Larry'' IP and the publishing rights to ''
Leisure Suit Larry: Box Office Bust''.
* April 27, 2009 -
Bethesda Softworks
Bethesda Softworks LLC is an American video game publisher based in Rockville, Maryland. The company was founded by Christopher Weaver in 1986 as a Division (business), division of Media Technology Limited. In 1999, it became a subsidiary of Z ...
purchased the publishing rights to ''
WET''.
* July 14, 2009 -
Rebellion Developments
Rebellion Developments Limited is a British video game developer based in Oxford. Founded by Jason Kingsley (businessman), Jason and Chris Kingsley in December 1992, the company is best known for ''Sniper Elite'' and multiple games in the ''Lis ...
acquired several Sierra titles - ''
Evil Genius'', ''
Ground Control'', ''
Empire Earth'', ''
Lords of Magic'' and ''
Lords of the Realm
''Lords of the Realm'' is a turn-based strategy computer game published and developed by Impressions Games. It was first released on June 15, 1994, and is the first game in the ''Lords of the Realm'' series.
Summary
The game takes place in a ...
''.
* October 1, 2009 -
Jeff Tunnell acquired ''
The Incredible Machine'' through his company PushButton Labs.
Brand name revival under Activision (2014–2016)
On August 7, 2014, the website for Sierra, which previously redirected to Activision's website, was updated to showcase a new logo, teasing: "More to be revealed at
Gamescom 2014." Activision confirmed that the Sierra label would re-release some of its older games, re-imagine its older franchises, and collaborate with indie studios to create new "innovative, edgy and graphically unique" projects. Sierra plans to focus on publishing downloadable games through PlayStation Network, Steam, and Xbox Live. Ken Williams said, "We're very proud of what we created all those years ago with Sierra On-Line, and today's news about carrying Sierra forward as an indie-specific brand is very encouraging. We look forward to seeing Sierra's independent spirit live on." That day, ''
King's Quest'' and ''
Geometry Wars 3: Dimensions'' were announced as the first two games published under the revived Sierra brand. On December 5, 2014, the company was awarded with the "Industry Icon" award during the 2014
The Game Awards, and it introduced the first footage of the reboot of ''King's Quest''.
In August 2018,
TJX Companies acquired the sierra.com domain from Activision, and the former subsequently shortened the name of its Sierra Trading Post subsidiary to
Sierra.
Subsidiaries
Development
* Books That Work was acquired in April 1997, folded into Sierra in February 1999.
*
Bright Star Technology in
Bellevue, Washington
Bellevue ( ) is a city in the Eastside (King County, Washington), Eastside region of King County, Washington, United States, located across Lake Washington from Seattle. It is the third-largest city in the Seattle metropolitan area, and the f ...
was founded in 1980 and acquired in 1992.
*
Berkeley Systems
Berkeley Systems was a San Francisco Bay Area software company co-founded in 1987 by Wes Boyd and Joan Blades. It made money early on by performing contract work for the National Institutes of Health, specifically in making modifications to th ...
was purchased by CUC International in April 1997 and integrated into Sierra as an internal studio.
*
Coktel Vision in
Paris
Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
was founded in 1984 and acquired in October 1993.
* Arion Software was acquired in 1995 and absorbed into Sierra On-Line.
* The Pixellite Group was founded in 1983, acquired in May 1995, and absorbed into Sierra On-Line.
*
Sublogic
Sublogic Corporation (stylized as subLOGIC) is an American software developer, software development company. It was formed in 1977 by Bruce Artwick, and incorporation (business), incorporated in 1978 by Artwick's partner Stu Moment as Sublogic Com ...
, based in Champaign, Illinois, was acquired in 1995 and absorbed into Sierra On-Line.
*
Dynamix in
Eugene, Oregon
Eugene ( ) is a city in and the county seat of Lane County, Oregon, United States. It is located at the southern end of the Willamette Valley, near the confluence of the McKenzie River (Oregon), McKenzie and Willamette River, Willamette rivers, ...
was founded in 1984, acquired in August 1990, and shut down in August 2001.
* Green Thumb Software in
Boulder, Colorado
Boulder is a List of municipalities in Colorado#Home rule municipality, home rule city in Boulder County, Colorado, United States, and its county seat. With a population of 108,250 at the 2020 United States census, 2020 census, it is the most ...
was acquired and absorbed in July 1995.
*
Headgate Studios in
Bountiful, Utah was founded in 1992, acquired in April 1996,
and sold to the original owner in 1999.
*
Impressions Games in
Cambridge, Massachusetts
Cambridge ( ) is a city in Middlesex County, Massachusetts, United States. It is a suburb in the Greater Boston metropolitan area, located directly across the Charles River from Boston. The city's population as of the 2020 United States census, ...
was founded in 1989, acquired in 1995,
and closed in May 2004.
*
Synergistic Software
Synergistic Software was a video game developer based in Seattle. Founded in 1978, the company published some of the earliest available games and applications for the Apple II family of computers. They continued developing games for various platf ...
was founded in 1978, acquired in 1996, and folded into Sierra in February 1999.
*
Papyrus Design Group in
Watertown, Massachusetts
Watertown is a city in Middlesex County, Massachusetts, United States, part of Greater Boston. The population was 35,329 in the 2020 United States census, 2020 census. Its neighborhoods include Bemis, Coolidge Square, East Watertown, Watertown Sq ...
was founded in 1987, acquired in 1995,
and closed in May 2004.
* PyroTechnix was founded as Computer Presentation, acquired December 1997, and folded into Sierra in February 1999.
* Yosemite Entertainment in
Oakhurst, California
Oakhurst (formerly Fresno Flats) is a census-designated place (CDP) in Madera County, California, located in the foothills of the Sierra Nevada approximately south of the entrance to Yosemite National Park. Positioned at the junction of Californ ...
was formed in 1998, and folded into Sierra in February 1999.
Publishing
* Sierra Attractions; 1998–2001
* Sierra FX; 1998
* Sierra Home; 1996–2004
* Sierra Sports; February 1998
–2000
* Sierra Studios; 1998–2001
Games
Sierra both developed its own games and published several games from its divisions and from third-party developers. As a developer, Sierra launched the video game series ''
King's Quest'', ''
Space Quest'', ''
Police Quest'', ''
Gabriel Knight'', ''
Leisure Suit Larry'', and ''
Quest for Glory''.
References
External links
*
{{Authority control
1979 establishments in California
2008 disestablishments in California
American companies disestablished in 2008
American companies established in 1979
Companies based in Fresno, California
Companies based in Los Angeles
Defunct Activision subsidiaries
Defunct companies based in Greater Los Angeles
Defunct computer companies based in California
Defunct video game companies of the United States
Former Vivendi subsidiaries
Technology companies based in Greater Los Angeles
Video game companies based in California
Video game companies disestablished in 2008
Video game companies established in 1979
Video game development companies