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)
We’re already looking at the results of an Activision Vivendi union and now Electronic Arts is slowly working towards taking over Take-Two. Activision Blizzard is larger than that of EA but would the Take-Two buy-out grow EA into the number one publisher once again?
Rather than allowing parents to utilize the ESRB rating, Thompson found it in his Christian heart to pursue game companies like his own personal holy war. Luckily he’s lost all his power because people finally realized he’s a lukewarm loon with a one track mind. But wait, there’s more!
Square Enix, like many developers today, look to combine their efforts with like-minded individuals making video games for our industry. Recently they put out a bid to pickup Tecmo and expand their development archive to new heights by jumping into a few more genre’s without starting at the ground floor.
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