7 Studios, Inc.

7 Studios was a game development studio founded in 1999 by Lewis Peterson and Erik Yeo. On 6 April 2009, it was acquired by Activision. The deal was controversial, as 7 Studios was developing Scratch: The Ultimate DJ at the time, a DJ musical simulation, while Activision had the similar title DJ Hero in the works. Publisher Genius Products and turntable controller manufacturer Numark Industries, who were behind the Scratch game, filed suit against Activision for intentional interference with contract, breach of contract and misappropriation of trade secrets, but the L.A. Superior Court found no evidence of any wrongdoing by the publisher and refused to grant any restraining order against it. Development of the Scratch game was continued at Commotion Interactive.

In October 2009, following the completion of DJ Hero, Activision laid off an estimated 30 people from 7 Studios, about half of the team. In February 2011 Activision announced to discontinue all music games series. On 9 February 2011, staff members confirmed that 7 Studios had been shut down. At that time, the legal dispute with Genius Products was still not resolved.