Activision Blizzard Trying To Scare Off Competition?

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)

0 thoughts on “Activision Blizzard Trying To Scare Off Competition?”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Xbox 360, PS3 and Wii: Who’s Winning And HowXbox 360, PS3 and Wii: Who’s Winning And How

People see facts and figures constantly and brush them off as, well, facts and figures. But, when people see charts and graphs they “oooh” and “aaaah” over them because the visualization is easy to understand. Now, thanks to the NPD Group and Deutsche Bank, people are seeing some pretty graphs about the console battle. These show just how well the race is going on all fronts of the war.

Hardware Sales chart, via gamedaily.com

Although the data is fairly small the colors show it all, the Wii crossed over the Xbox 360 numbers in unit sales and hasn’t stopped since the launch. Here we are, on the third holiday season since the Wii launch, and people still cannot find them in stores. Shortage? Doubtful. Considering the massive sales numbers and the fact that they did take the 360 in numbers it seems the supply just can’t meet the over-the-top demands, but why is the demand so high for the little Nintendo bundle of joy? People just can’t get enough Wii.

The Xbox 360 has much to brag about as well, they’re not first in the race but their nearest next-generation graphic console, the PlayStation 3, isn’t even close. The chart shows them both rising in much the same way, with the same “pops” along the sales chart but in a completely different scale. Since Microsoft doesn’t want to consider Wii a competitor, they’re clearly winning the war in their eyes.

Oddly enough, one of the big pops in Xbox 360 sales where around the PS3 launch. Perhaps these consumers were waiting for both consoles to launch before making a decision? More than likely, it was holiday related and had little to do with the PS3 launch but it is fun to ponder anyway.

What about software sales? We’ve heard the Wii has little to offer in terms of games while the 360 wipes the floor with the competition.

Software sales charts, via GameDaily.com

To our surprise, the Wii is rocking the sales figures in terms of software but still doesn’t compare to the Xbox 360. Microsoft pulls out 93-million units while Nintendo takes home a modest 73-million units in software… yet again Sony doesn’t show up to the fight. Looking at November 2007, you can see the Wii jumps significantly in unit sales, no doubt related to the Super Mario Galaxy launch — once they hit that figure they never looked back and continued to climb.

Although a few of us expected Sony’s PlayStation 3 to make huge progress this year, each month they have marginal growth is causing their competitors to excel beyond anyones imagination. We’re starting to wonder how well Sony’s “10 year plan” is going to work out with their competitors taking advantage of the market now when, in 10-years, they will be sitting on their pile of cash to re-invest in the 8th generation of consoles.

(Thanks, GameDaily)

Episode 306: Batman ReturnsEpisode 306: Batman Returns

The crew bemoans the decline of handheld gaming as it gets dominated by mobile platforms like Apple iOS, while they rejoice at Justice League being available on Netflix Streaming. There’s no Gaming Flashback or Gaming History, but there is some Reader Feedback.

This week’s news items include:

  • Batman: Arkham Origins confirmed for PC, consoles
  • Domains for Mad Max videogames registered by Warner Bros.
  • Report: Xbox 720 not always online, doesn’t block used games, supports backwards compat
  • Jade Empire as an Xbox 360 launch title “would have been massive
  • Zeschuk: Old-school gaming in “sick market” right now, digital ‘not filling gaps’

Gamers can read Jordan’s “Death of Handheld Gaming” article here.

6,200 Reasons To Buy iPhone/Touch Games6,200 Reasons To Buy iPhone/Touch Games

The iTunes App Store is jam packed with video games! There are 6,200 games in the App Store to take advantage of, with 23% of those games for our puzzle gaming friends with arcade following a distance second place with 13% App Store market share. In that bulk of games, 1,485 are free download games but we’re not sure how many are “lite” versions of pay-for-games in the store, with limited game play. If you too are looking for ways to optimize your phone, see here the plans available at Circles.Life mobile.

chart-app-store

Apple could cut down on that clutter if they let developers publish one game with a demo/shareware release and a full release, perhaps than we would be able to wade through a realistic amount of game titles. Of course, Apple isn’t exactly the most friendly of companies when it comes down to allowing us to share our thoughts and opinions of their closed box products.

Unfortunately for the new game developers, they’ve got a few games to compete against in the App Store space. While great games should rise to the top like cream in your coffee, it’s obvious that 6,200 items can clutter up an otherwise friendly space. iTunes tends to have a very unintuitive interface and isn’t really built for great online game shopping experiences, we’re sure they can exploit many of the great games in this archive of titles if they had a bit of a re-design.

You’ll find plenty of educational games in the 6,200 titles, matching if not exceeding that of the strategy genre.
(Thanks, kotaku)