Activision Blizzard Trying To Scare Off Competition?

August 31, 2008| schommer| 0 Comment| 10:25 am

Categories:

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?”

Episode 312: Dare You To Press the ButtonEpisode 312: Dare You To Press the Button

This week’s episode is the final episode before E3, and next week, an outtakes episode filled with Dr. Who and Game of Thrones discussion will run. After that, we’ll have some serious E3 2013 discussion, especially about what happens with Microsoft and Sony in particular.

No Gaming Flashback, but news includes:

Pachter predicts $349 for PS4, $399 for Xbox One
World of Warcraft movie ‘begins shooting‘ in Q1 2014
Robert Bowling’s Robotoki raided by LAPD, mistake COD figure as armed intruder
Documentary seeks to unearth 3.5M E.T. cartridges from landfill
Oculus Rift developer Andrew Scott Reisse, 33, killed as bystander in police chase
Shadow of the Eternals Kickstarter fundraising struggling

All that and Listener Feedback.

Wrath of The Lich King – Rune SystemWrath of The Lich King – Rune System

As the Wrath of the Lich King beta lives on, the world (and software behind it) is ever changing. Apparently, the rune system has changed a lot since its first inception. This requires a delicate balance, as the goal is a well rounded Death Knight class without epically overpowered features. Too much power and people will feel cheated while others feel overly destructive. End result, everyone would be a Death Knight.

The rune system that Blizzard has created is more straight forward than the initial system because it contains less variables. The Death Knight has a secondary bar, much like a Warrior, that starts empty and slowly climbs with “Runic Power,” an energy generated when you cast spells and expend rune energy. It works much like the warrior class, as it builds it will open up some abilities in your bar that were “grayed out” because they couldn’t be cast yet.

What the heck is a rune? Above your character profile you’ll have six little circles, called runes, these little guys work much like the rogues energy. The three styles of runes are: Blood, Frost and Unholy runes and they’re coordinated with your spells and sword strike abilities much like a paladin or warrior. Each rune “goes dark” when you expend its energy – this limits your access to use the Death Knights abilities much like expending all your rogues energy stops the rogue from using their neat features. However, once its energy is expended, it will grow your runic power a slight bit, “charging” it for later use.

(more…)

Beauty of Micro-transaction MMO’sBeauty of Micro-transaction MMO’s

Taken from Florensia Online There is room to grow in the world of massive multiplayer online gaming. A large online community should not have to subscribe to a monthly charge to play great MMORPG’s because there are other known models that work, including the micro-transaction based MMO.

At first, this sounds like a dirty word, micro-transaction. Often we relate it with being “nickle and dimed” through a video game by means of dirty marketing which feeds our enthusiastic gamer addiction. Put this thought aside for a minute and keep an open mind.

Imagine a game with worlds the size of World of Warcraft and stories as in-depth as Guild Wars (which is not monthly itself) but free from monthly payments (or “playments” a new term that needs to be coined). The reason behind the monthly charge covers service fees, technical support staff, bandwidth, servers and sheer volume of Activision Blizzards user base.

The micro-transaction concept could still help pay for all the overhead of running an online gaming business because gamers tend to be over-enthusiastic about their great addictive games. If you build a game with excellent content, replay value and strive for a community atmosphere a micro-transaction title can work just as well as a subscription based game.

One beautiful aspect to micro-transaction models is paying for content when you’re willing to pay. This includes cosmetic character alterations, basic needs items (health potions) and other products to enhance the playability of the game without requiring the gamer to do so. There will be some gamers that use this as a “free ride” and never buy anything while other gamers spend way too much because they have expendable income which helps balance out costs.