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)

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Sony’s 10-Year Vision: Graphics or Games?Sony’s 10-Year Vision: Graphics or Games?

Microsoft, Sony and Nintendo have great visions for their consoles, they all strive to stand out from their competitors. Nintendo’s key initiative is to get non-gamers on board and provide the world with something a little different while Microsoft’s concept is to get a 360 into the hands of all gamers and build a huge community. Sony’s selling point? Graphics.

When it comes to standing out amongst the other consoles, Sony cannot compete with the Wii‘s quirky cuteness and Xbox 360‘s one-year lead on sales, games and overall functionality. They were late to the game because of technological advances in Blu-Ray and overall graphic horsepower. They’re providing a console that will still look “teh awesomes” ten years down the road, similar to the attack plan of the PS2 product which still sells today.

Sony’s Scott Steinberg, Vice President of Product Marketing for SCEA had nothing but great things to say about the console he’s marketing…

“I think that we’re seeing, graphically, PS3 games starting to create some distance and some of the other competitors are going to feel that they’re getting long in the tooth, looking quite dated, because they haven’t created that ten-year vision from a horsepower standpoint” (psu.com)

Really? Does anyone look at the Xbox 360 and say “this thing looks dated.” Each new title release continues to look more advanced and more graphically appealing than the last. Sure, Resistance 2 looked graphically epic, but the title isn’t on the shelves yet. As a matter of fact, very few PS3 titles are on the shelves when it comes to graphically appealing titles everyone wants.

As Nintendo has proven, it’s not always about the advanced graphics but the fun value and access to many titles across many genre’s of gaming. We’re happy about a nice 10-year vision but there is a reason classic games like Pac-Man, Missile Command and Galaga are still talked about and played by gamers: simple and fun.

Microsoft may not have a ten year vision, this is true, but I’d rather have a hot console I can play for the next six years than own a more expensive console with few games until its third year of life. The PlayStation 3 has been beating the Xbox 360 sales in 2008, is this too surprising given the fact that the Xbox 360 was out a year ahead? Sales aren’t always going to be rosy and over the top (unless it’s the Wii).

Rather than concentrate on how many more consoles the PS3 has sold compared to the 360, look at how many Wii consoles have sold to the graphically superior PS3. Perhaps Sony should speak less to the gamers about how awesome their console is and speak more to the developers so we can get titles worth buying for the console. Gamers only win when a console has games for them to play.

PS3 and 360 Price Cuts, Before Holidays EndPS3 and 360 Price Cuts, Before Holidays End

A lot of people have purchased the Xbox 360 and a growing number have had new interests in the PlayStation 3. The summer time is winding to an end and fall will bring us a new host of video games and reasons to keep playing our current generation consoles. Many analysts and industry leaders believe the 360 and PlayStation 3 will undergo a USD $50.00 price cut before the Holidays begin.

With holiday madness comes momentum and sales, a USD $50.00 price cut would help bring new momentum to both consoles, especially with Nintendo lapping them in sales. Nobody has considered the direction of the Wii as it doesn’t need to be priced competitively given this is going to be the third year it’s impossible to find in stores.

Do the consoles really need a price cut? It’s hard to argue the PlayStation 3‘s dire need for cutting in price given its already outrageous costs for a console with the least amount of desired titles. The Xbox 360, for most, has the best lineup of titles with a strong fall series of games. The Wii… well, titles don’t really matter just yet because people still buy the console upon sight. The PlayStation 3 is showing off some impressive graphics for this fall and early next year, it may almost be time to invest in the product.

The fall games will keep hardcore gamers buying titles but it will do little to inspire new console sales. If GTA IV, Halo 3, Gears of War and Metal Gear Solid 4 couldn’t drag a gamer to buy, what fall titles will do so this year? Probably very few.

It’s time for the big console vendors to broaden their audience by opening the console to a demographic of gamers that just can’t afford the higher graphic consoles. No, USD $50.00 won’t bring in everyone but it may inspire those on the fringe of consideration to change their minds. With their new consoles in hand they can use their USD $50.00 savings to purchase a new holiday release title.

Episode 515: Telltale ClosesEpisode 515: Telltale Closes

This week follows the stunning announcement over the closure of Telltale Games and the repercussions of the shuttering of one of the most influential companies in the industry. There’s also Scott continuing to gush about Dragon Quest XI and Jonah enjoying the 2008 version of Prince of Persia again. That, and Fallout 3 headlines the Gaming Flashback.

News of the week include:

  • Telltale employees left stunned by company closure
  • Swiss soccer fans temporarily stop game to protest esports
  • Brian Fargo will try to buy back Interplay if The Bard’s Tale IV sells well enough
  • Rez creator’s musical re-imagining of Tetris launches in November

Let us know what Telltale Games you were hoping to see in the future.