Activision Blizzard Trying To Scare Off Competition?

August 31, 2008August 31, 2008| schommerschommer| 0 Comment| 10:25 am
Categories:

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?”

  1. Pingback: TD Gaming Podcast 86: Trouble with Norse Mythology | Gaming Podcast
  2. Pingback: TD Gaming Podcast 86: Trouble with Norse Mythology | Gaming Podcast
  3. Pingback: TD Gaming Podcast 86: Trouble with Norse Mythology | Game Stooge
  4. Pingback: TD Gaming Podcast 86: Trouble with Norse Mythology | Game Stooge

Leave a Reply

Your email address will not be published.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

Related Post

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.

Read MoreRead More

Rumor: Wii Motion Plus DelaysRumor: Wii Motion Plus Delays

Wii Motion Plus is Nintendo’s next big hardware up sell, an add-on that should make the Wii controller more realistic and flexible when playing highly sensitive “real movement” games. The hardware has been looked at by many in the industry as fixing imperfections in the current hardware, a patch of sorts.

wiimotionplusThe Wii Motion Plus is going to be bundled with Wii Sports Resort, a title that’s obviously playing off the biggest Wii hit Wii Sports. Latest reports are showing the game title missing from the upcoming release lists, so, it’s not too far fetched to assume the hardware will be delayed along with the game, considering this was the first game to rely on the Wii Motion Plus hardware.

The delay is rumored to be due to a few problems with the Wii Motion Plus, more than likely during the final stages of testing the prototype products. In Nintendo’s defense, they’re usually very good about due diligence when it comes to producing hardware and software, taking the time that is needed to get something into the customers hands that’s acceptable quality. All eyes are on Nintendo with the Wii Motion Plus because people see this as the final “fix” to make the Wii controller do everything it was promised to do.

While Nintendo doesn’t see the original controller as broken (nor do the millions of customers buying them everyday), this new hardware should make it more sensitive for games that require perfect movement… games like Wii Sports Resort?

At this point we’d expect to hear news of a slight delay by Nintendo soon. We’d rather see it arrive late than utterly broken and useless.

(Thanks, Kotaku)

Read MoreRead More

Sony Responds To Crashing Sales with Management ShiftSony Responds To Crashing Sales with Management Shift

ps3Sony Computer Entertainment Europe has made some leadership changes in response to their in-ability to get things going in the sales department of the PlayStation 3. Gamer’s continue to refuse to believe the PlayStation 3 is in a bad situation by explaining how badly Microsoft’s Xbox 360 is doing in Japan and Europe compared to the Sony console. And, of course, the Wii isn’t competition to Sony.

“Andrew House, Chief Marketing Officer and Group Executive of Sony Corporation, has been named President, Chief Executive Officer (CEO) and Co-Chief Operating Officer (Co-COO) of Sony Computer Entertainment Europe (SCEE) as of May 1, 2009.” (smarthouse.au)

We’ve been told this is the year of the PS3, this is when they bring it all together. Nintendo’s losing some of their grip on the industry with slower sales, even in Japan. The economy isn’t playing nice with any of the consoles and sales continue to drop, reportedly 17% in March compared to last years numbers.

Australia isn’t proving to be any help to Sony, “for example in Australia a consumer can now buy the Xbox 360 for $299 and a separate Blu ray player and DVD upscale player for $199. Combined this is $200 under the recommended retail price for a Sony PS3.”

Here in the United States, we’ve bought more Wii balance boards than PlayStation 3 consoles. One can argue that the Wii is a novelty system but that really casts a dark shadow on the PlayStation 3. The PS3 is being beat out by a novelty item? Can the new SCEE management change the direction of Sony?

Read MoreRead More