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Your email address will not be published.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

Small Games Make Big WavesSmall Games Make Big Waves

The game industry is doing “okay” in this bad economic time compared to other industries.  Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

wiiwareWe’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.

Episode 435: Happy Birthday PaulEpisode 435: Happy Birthday Paul

This episode was delayed a few days thanks to some acting work for Jonah Falcon. The podcast moving forward will be recorded on Wednesdays, partly because videogame releases are on Tuesdays. The guys also discuss the disaster No Man’s Sky has been.

This week’s news includes:

  • EA strongly hints that Mass Effect games will get remastered
  • No Man’s Sky’s PC patch is out now
  • NPD: 3DS, Xbox One, And GTA V lead brutal July slump

All this and Listener Feedback, too.

Seven Games That Need to Be RemadeSeven Games That Need to Be Remade

With the strong rumor that Halo: Combat Evolved is going to be remade graphically from the ground up, it brings us to the question of why aren’t more games being remade? We’re not talking about reboots like the new emo Devil May Cry, or re-imaginings like the first person shooter XCOM. We’re talking about a true remake like you see endlessly from Square-Enix with its Final Fantasy games on the handhelds – they’re completely faithful to the original, save a new engine, graphics and occasionally an additional mission or two; the upcoming localization of Dragon Quest VI is a great example.

So, we’ve picked out seven games that desperately need a modern remake, sometimes due to their primitive graphics, sometimes due to their incompatibility with the current OS, or the fact you need to do some major tweaking to get them to run (unless GOG.com does it for you, bless their souls.)

These games aren’t old or have already been remade, so you won’t see M.U.L.E., Sid Meier’s Pirates or Seven Cities of Gold – in fact, the oldest of the games is from 1994. You also won’t see games that require little work to be remade, which is why you won’t see Grim Fandango here, either. These games would require serious undertaking. The games also have to remain the same genre and style, so no Elder Scrolls version of Ultima IV, either.

Without further ado, here are five older games that desperately need a remake – in alphabetical order.

(more…)