Activision Blizzard Trying To Scare Off Competition?

August 31, 2008| schommer| 0 Comment| 10:25 am

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A few months ago, Activision Blizzard CEO Bobby Kotick said investing $500 million to a billion still wouldn’t be enough to compete with an MMORPG like World of Warcraft. The MMORPG space is a costly investment and you’d need to really burn a lot of money to start competing against the mega-giant, but Mythic VP and Warhammer Online lead designer Mark Jacobs disagrees with that quote.

Jacobs says $100-million dollars would be needed to start competing against the giant subscription generator that is World of Warcraft. Although few developers are sitting on $100-million USD, it’s a bit more realistic an investment for a studio to scrape up compared to a billion bucks! A billion dollars is a scary number when you consider that’s the start of an investment that may, or may not, pay off in the end.

Kotick may not be using complete scare tactics, he may be working off experience when dealing with MMORPG’s. A startup MMO isn’t a cookie cutter system, there is a lot of development efforts, $100-million dollars worth, but MMO developers slip dates many times. When you start slipping your dates you’ll start burning more money and, before you know it, you’re a billion in the hole. Jacobs thinks $100-million will cover development costs and messing up, so a billion is still way over budget.

Perhaps this is a bit of a scare tactic, assuming a developer will fail and slip their dates isn’t really a great way to start quoting prices. However, shooting too low isn’t always the best method of building your development assessments. The end result, scream ONE BILLION and you may scare off any potential startup MMO developers.

Warhammer Online lead designer did mention one big barrier to entry: the need for “at least half a million subscribers to be successful.”

(Thanks, 1up)

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Life Sized Gears of War Lancer, Oh GoshLife Sized Gears of War Lancer, Oh Gosh

Imagine that, the USD $139 Gears of War 2 bundle includes a life-sized plastic gun that goes “zoom zoom bang.” It comes with a removable handle clip and an adjustable side-handle but… in the end… it’s a plastic toy gun manufactured for adults.

Gears of War 2 is “Mature Audiences” only but apparently that doesn’t mean these adults aren’t ready and willing to go out and buy a bundle that comes with a collectible plastic weapon. It’s listed as an Amazon top-seller and plenty of mature audiences are going to be chasing each other around the house going “boom boom, I got you” this November.

Seriously, isn’t this just going over the top in terms of stupid toys? Somehow people seem to think this is “cool,” but how many would be straight-faced walking into a Starbucks and seeing a 40 year-old man sitting at the table sipping apple juice while playing with his GI Joe’s and He-Man action figures?

In my mind, this is a piece of junk that’s going to end up in a box under your staircase or packed in the attic within a month or collecting dust hiding from your grown up friends. But who am I to judge, Amazon #1 top-seller says it all.

Trading Used Games, Like Fraud?Trading Used Games, Like Fraud?

David Braben, founder of Frontier Developments, says retail outlets that buy and sell pre-owned games are “essentially defrauding the industry.” Although multiplayer gaming might not be a huge threat, the single player experience in games may die out because gamers play the game quickly and resell it back to places like GameStop for others to buy.

Developers don’t get a dime when a game goes traded, many gamers will “share” the single player experience with a single copy of the game by reselling it over and over. The end result, retail outlets make a good penny for marking up old games while developers see nothing. This is really how game retail outlets survive because the margins on video games is so damn low.

The story has been heard before, developers want a piece of the action so they’re taking steps to entice people to keep the game with renewed downloadable content on old games; you can’t experience the new content without keeping the game around longer. In the world of low margin games, high cost development and short-lived story lines the solutions to this problem aren’t exactly obvious.

Braben’s idea of a solution is to offer two versions of the game, a not for resale/rental version at a high price, say $160, and a low priced version that cannot be shared (heavily DRM’ed?) for $50. In essence, gamers would no longer be able to trade in games because the idea of spending double for a game so you can resell it makes no sense to most gamers (including myself.)

(more…)

The American Entertainment Industry is Contributing to Global Piracy!The American Entertainment Industry is Contributing to Global Piracy!

Believe it or not, there are many gamers that live outside the United States. Those of us that do not live in Japan and the US aren’t always a first priority for the entertainment industry when it comes to hot new releases, yet everyone feels the power of the marketing dollar… we’re just not all “privileged” enough to experience it on day one… or year one. Here is one such story, written by rover on of our forum posters, explaining how this leads to piracy in our global economy…

Let us pretend for a moment the best motion picture of the year ranked 10 out of 10 stars on imdb.com and was released in November 18th 2007. While the United States had access to the movie all year, distributors announced a European premiere on June 16th 2008. Months after North American the release, Europe may see this blockbuster movie in its region, leaving everyone to ask themselves, “how do I see this wonderful film now?”

The world isn’t as it once was. Years ago we found ourselves lining up on an early Saturday morning in the freezing rain just to buy a new CD or rent the latest movie on VHS. Today, people expect to get what thy want NOW. We see a spot during a commercial on TV for a new CD, movie or perhaps a TV show which spark our interest and what do we do? We can wait six days to watch the next hit TV show prime time episode or line up at CD MegaWorld Monday morning at 7am to buy the CD, or we do something entirely different: we go online. Most of us would go to amazon.com to find that excellent new artist, or perhaps itunes.com to find the latest episode of our favorite TV show.

Online is the way to go. We don’t mind paying for quality entertainment; the only thing we ask is to get some flexibility to our time schedule. Some of us may watch our hit prime time TV show at 1 AM or listening to our favorite music on the bus at 5 AM. The question is “can I?” and the answer is, “yes you can!”

Now here’s where problems arise. The “yes you can” statement only applies to one group of people, specifically the North Americans. You watched this seasons first episode of “Lost” on TV, you can go online and find out there are three full seasons of 22 episodes already aired. Great! Now all I must do is pay up roughly USD $1 per episode and I’ve got the ability to download all episodes and watch them at my own leisure… right?