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Your email address will not be published.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

Episode 355: E3 Swag Bag Part 3Episode 355: E3 Swag Bag Part 3

This is the final week of the E3 Swag Bag giveaway, which includes a The Sims 4 bag, a The Sims 4 T-shirt, The Sims 4 sunglasses, and some other goodies like a Dragon Age: Inquisition T-shirt, a Farming Simulation 2014 cow, and so on. Paul is unavailable this week but Jordan’s wife Jennifer guest hosts, with the famed Kingdom Hearts being the Gaming Flashback.

This episode also includes the following news items:

  • Report: PS Vita no longer available at major retailers
  • No women allowed at upcoming Hearthstone tournament
  • Lindsay Lohan files suit over GTA V allegedly using her likeness
  • Sources: Crytek UK’s staff no longer going to work
  • Riot closing League Of Legends’ public chat

And once again, the Question of the Week: “What was your biggest takeaway from E3?”

Episode 368: Black Friday ApproachesEpisode 368: Black Friday Approaches

As Black Friday approaches, Jonah and Paul discuss this week’s news after an absence. No Devin this week, as well as no Gaming Flashback or Gaming History. Paul loses it on the last news item, too.

As for the news:

  • Just Cause 3 announced for PC, PS4, and Xbox One in 2015
  • Nintendo talks third party, holiday strategy
  • Dev: It’s tougher to develop for kids than core gamers
  • Intel resumes advertising with Gamasutra
  • Xbox One sales triple following $349 promotion
  • World of Warcraft hit with DDoS attack as new expansion launches
  • Carbine: Redundancies are “part of game development”

The Question of the Week: “When did you first start buying games digitally?”

Why Doesn’t iTunes Have Game Trials?Why Doesn’t iTunes Have Game Trials?

Nothing is more annoying than going into iTunes to see what video games are available for the iPod Touch and iPhone to find it cluttered with hundreds of duplicate games. Developers seem to find it most useful to release two games instead of one single game: a full version and a “lite” version.

itunesDevelopers know gamers want to try before they buy, so many will create a game they’re hoping to sell, then a limited “lite” version with partial levels or stripped of features. They’re obviously trying to work around the fact that Apple released a half-assed game shopping experience. These pro and lite versions assist in cluttering the shopping space.

iTunes App Store should allow users to trial a game by allowing them to download a neutered version of the game title or using a time-trial like many other downloadable game services. Electronic game downloads are usually non-refundable because you can never give back a product which you can make infinite copies. The solution to getting users to buy into your product is to allow them to try before they buy.

Apple’s obviously enjoying the immense game sales from the application store but they may be able to increase their sales by allowing gamers to see what they’re buying before they walk away empty handed. This would also limit the total products found in the App Store because developers won’t have to post to revisions to their game title to allow gamers to try before they buy them.

There are some obvious downsides, Apple wouldn’t be able to boast the thousands of products in their store because many would be substituted for a real game download system. Okay, that’s really the only download I can think of… any others?

Developers may opt out of a trial system, forcing gamers to buy it before they try it based on the text and screenshots or utilize a time trial or limited featured version.

Thoughts?