The change to a more progressive, operatic style was also precipitated by Jon, after seeing a performance of Phantom of the Opera in Toronto. Since that album, the band has adopted a more progressive style, writing longer songs with more complex melodies and differing vocal styles, rather than the more straightforward power metal style that was apparent in earlier works. Gutter Ballet, which was released in 1989, could be considered the band's true turning point. O'Neill contributed most of the lyrics for the rest of their career and gave them a more conceptual edge starting with their next album, Gutter Ballet.

The album introduced a new musical style, featuring symphonic elements, strongly influenced by their new producer, Paul O'Neill, that would shape the band's future recordings. The band recorded their first music video for the album's title song, which received extensive air play on MTV's Headbangers Ball and was followed up by a video for the song '24 Hours Ago'. In 1987, Savatage released their first commercially successful album, Hall of the Mountain King, which became the base for the band being catapulted into a more mainstream arena. Since 1987, Johnny has been the only consistent member of Savatage, performing on every album. During this time, original bassist Keith Collins left the band, and Johnny Lee Middleton joined the band. Oliva recently admitted however the album did have strong points, including the band's cover of Badfinger's 'Day After Day'. Not only did it destroy them in the press, it nearly destroyed the band and sent Jon into his early alcohol and drug problems. In a show of youthful naivete, the band agreed. Later, the label turned around and demanded Savatage record the material themselves. Jon Oliva had been retained to write material for other artists on the Atlantic label, such as John Waite and other pop-rockers. The band themselves were not happy with the record, with pressure from the label to include two cover versions. Many Savatage fans resent the making of the album and view it largely as a disappointment. In 1986, after the release of their fourth album, Fight for the Rock, a failed attempt at a commercial approach imposed by the record company which the band themselves called Fight for the Nightmare, Savatage toured with Metallica, KISS and MotГ¶rhead. The band refused to change the song and consequently a video was not released.

Atlantic budgeted to provide funds to make a video for 'Hard for Love', on the condition that it be retitled 'Hot for Love' for broadcast purposes. It was well received by critics but fell short of sales expectations. Power of the Night, which was produced by Max Norman, who would go on to produce Megadeth's 1992 album Countdown to Extinction, showcased the band's unorthodox approach to metal, which included Jon's liberal use of keyboards on songs like 'Fountain of Youth' and Broadway-style song structures like the kind employed on 'Warriors'. In 1985, they signed a contract with Atlantic Recording Corporation and released their third album Power of the Night. Their first two albums, Sirens and The Dungeons Are Calling, were released on Par Records, an independent label. Combining the words 'Savage' and 'Avatar', the band decided on Savatage. In 1983, 'Avatar' was forced to change its name due to copyright issues. In 1982, Avatar took part in some heavy metal compilations, most notably 'The YNF Pirate Tape', a promotion by Tampa rock radio station 95ynf for local Florida bands. In late 2006, footage was released onto the internet of an early performance by Avatar at a gig in a Clearwater, Florida parking lot and was prominent in featuring an early version of the song 'Holocaust', which would later be released on Savatage's first album and a cover of Van Halen's 'Eruption' and VH's version of 'You Really Got Me'. In 1981 Keith Collins joined them to relieve Jon of bass guitar duties, even though he was actually a rhythm guitarist. They also gave Steve a nickname that would follow him throughout his career: 'Doctor Hardware Killdrums', often shortened to just 'Doc' or 'Doc Killdrums', which referred to Steve's hard playing style.Д¬riss, Jon and Steve played Tampa (where they had moved with their family in the late-70s) and Clearwater area clubs for many years. Wacholz originally tried out to be part of Jon's band, Alien, but when the first Savatage line-up was taking shape, Jon, who was originally on drum duties, was relieved of them by Wacholz. In 1980, the duo met up with Steve Wacholz and jammed in a shack behind the Oliva home that was dubbed 'The Pit' by the band. Criss Oliva and his brother Jon formed their first band together, Avatar, in 1978, from the ashes of their former bands Tower and Alien respectively.

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