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Your email address will not be published.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

Kaz Hirai Dooms 360 To Short LifeKaz Hirai Dooms 360 To Short Life

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.

Trials of a World of Warcraft Player: Entry FiveTrials of a World of Warcraft Player: Entry Five

“The Grind”

With Wrath of the Lich King arriving last week it only made sense to jump into the new content “Lich King” style. Although we had initially reacted to the beta, playing the final content was much more fun with all of our guild and friends to play along.

It only took a few hours to get my new Death Knight to level-58 beyond the starting area and into the real world of Azeroth. Upon reaching the main city (Ogrammar as we’re horde) I picked up two new professions to make me a bit of dime: mining and skinning. This is where the beauty of the Death Knight fell apart…

A level-58 character has a few options open for exploration with the Burning Crusade content being the most desirable starting point. However, quickly it became apparent that my professions of mining and skinning were useless in Hellfire and other Burning Crusade areas. Why? Professions start with a value of 1. The last expansion requires your professions to be roughly 300 before you can utilize them.

My level-58 Death Knight has no experience in the ways of skinning and mining, what has he been doing all his life? Apparently killing innocent people in small villages throughout the Eastern Plaguelands. My anticipation with leveling my Death Knight died knowing I’d spend the next few days hunting mines and killing animals as if I where a level-10 toon.

There I was, a high level character trolling Crossroads and Thousand Needles hunting for copper and tin and skinning all the low level creatures I could find. Why didn’t Blizzard consider this when they allow you to create a level-55 character on day one? If we don’t go off and grind our way to a profession level of 300 we might as well not even pick professions at all.

I was not alone in these findings, along my path I found several Death Knights with skinning knives and mining tools looking for open opportunities to cut into the earth or the dead animals skins all around them. Sure, we can kill a cat in seconds flat but the “grind” is what we wanted to avoid, this is what characters spend their first twenty levels doing!

After three sessions of mind numbing grinding I’ve managed to reach a skill of 340 in skinning and coming upon 200 in mining. Mining is still too low for high level game content so I must whisk myself away to noobville every so often to catch a few mythril nodes and pray for a gold deposit along the way.

This may not be a bug in the Wrath of Lich King expansion but it sure is an annoying design flaw.

Episode 465: No FrillsEpisode 465: No Frills

This week’s episode is raw and unedited, since Jonah’s laptop got fried. However, despite the audio issues and being posted via cell phone, the gang got off a pretty good show.

This week’s news includes:

  • Overwatch pro ends career with stream of racial slurs
  • Don’t expect Kingdom Hearts 3, Final Fantasy 7 remake until at least 2018
  • DOTA 2 will soon require competitors to cough up their phone number
  • Report: PlayStation VR bundle will come with required camera and one Move controller

The Question of the Week: “What kind of VR game would you want to play?”