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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The American Entertainment Industry is Contributing to Global Piracy!The American Entertainment Industry is Contributing to Global Piracy!

Believe it or not, there are many gamers that live outside the United States. Those of us that do not live in Japan and the US aren’t always a first priority for the entertainment industry when it comes to hot new releases, yet everyone feels the power of the marketing dollar… we’re just not all “privileged” enough to experience it on day one… or year one. Here is one such story, written by rover on of our forum posters, explaining how this leads to piracy in our global economy…

Let us pretend for a moment the best motion picture of the year ranked 10 out of 10 stars on imdb.com and was released in November 18th 2007. While the United States had access to the movie all year, distributors announced a European premiere on June 16th 2008. Months after North American the release, Europe may see this blockbuster movie in its region, leaving everyone to ask themselves, “how do I see this wonderful film now?”

The world isn’t as it once was. Years ago we found ourselves lining up on an early Saturday morning in the freezing rain just to buy a new CD or rent the latest movie on VHS. Today, people expect to get what thy want NOW. We see a spot during a commercial on TV for a new CD, movie or perhaps a TV show which spark our interest and what do we do? We can wait six days to watch the next hit TV show prime time episode or line up at CD MegaWorld Monday morning at 7am to buy the CD, or we do something entirely different: we go online. Most of us would go to amazon.com to find that excellent new artist, or perhaps itunes.com to find the latest episode of our favorite TV show.

Online is the way to go. We don’t mind paying for quality entertainment; the only thing we ask is to get some flexibility to our time schedule. Some of us may watch our hit prime time TV show at 1 AM or listening to our favorite music on the bus at 5 AM. The question is “can I?” and the answer is, “yes you can!”

Now here’s where problems arise. The “yes you can” statement only applies to one group of people, specifically the North Americans. You watched this seasons first episode of “Lost” on TV, you can go online and find out there are three full seasons of 22 episodes already aired. Great! Now all I must do is pay up roughly USD $1 per episode and I’ve got the ability to download all episodes and watch them at my own leisure… right?

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

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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?