Activision Blizzard Trying To Scare Off Competition?

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

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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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Blu-ray Doesn’t Validate Your Console, SonyBlu-ray Doesn’t Validate Your Console, Sony

Is Blu-ray dead? Tech Sites around the Net are calling it a “death spiral” and we’re now looking at the downfall of the winning high definition format. Many non-PS3 Blu-ray players are still in the USD $200.00 range, a bit high for mass market adopters, and people aren’t planning to run out and buy a Blu-Ray player in our economic slump.

What’s the market share of the Blu-ray product? Four Percent. Blu-ray and the PlayStation 3 have a lot of battle scares after the fight with HD-DVD to “win” the format war. In the end, Sony won the battle but the war was not with the HD-DVD format, it’s with the average Joe consumer.

Does this effect the PlayStation 3? One of the up sells of the PlayStation 3 was the Blu-ray capabilities, it games and it’s an entertainment device all-in-one. It’s a great deal right?

“The advent of low cost up-sampling DVD players dramatically cut the video quality advantage of Blu-ray DVDs. Suddenly, for $100, your average consumer can put good video on their HDTV using standard DVDs. When Blu-ray got started no one dreamed this would happen.” (zdnet)

The obstacles against the Blu-ray format are huge, especially with NetFlix coming to the Xbox 360, high definition download options and licensing costs on the Blu-ray to movie creators. Blu-ray won’t die in this generation of PlayStation 3 consoles but many folks, including Apple, are pausing to see if it has any chance at all to break into the industry.

Four percent just isn’t enough to inpsire confidence.

Episode 310: Halo Makes You Feel OldEpisode 310: Halo Makes You Feel Old

This week’s podcast features a Gaming Flashback of Halo: Combat Evolved, one of the longest such game segments in the podcast’s history, encompassing a third of the podcast.

This week’s news items includes:

Blizzard decides against rolling back Diablo III servers following gold exploit
Defiance to get 5 major DLC packs in the next year
Report: Next-gen Xbox console called “Xbox Infinity”
Obsidian expresses desire to develop Star Wars RPG
EA to stop licensing with weapons manufacturers, will keep using branded guns

There’s only one reader response, but there is a Question of the Week: “What videogame genre are you completely burned out on?”

EGM closed, 1-UP Purchased, We Wish Them Well!EGM closed, 1-UP Purchased, We Wish Them Well!

When I was a little boy gamer I would spend a bit of my allowance on Electronic Gaming Monthly a great little gaming magazine. Unfortunately, young gamers will never understand what the industry was like twenty years ago. In a time before the Internet, the only place to get gaming news for a young kid was a glossy magazine. Today, EGM closes its doors and we’re losing a historic piece of gaming history.

Granted, there were other glossy magazines prized by young boys too, but we were old enough to purchase Electronic Gaming Monthly, now known as EGM by the hip and cool. Although EGM was founded in 1989, many adults between the age of 29 and 35 probably spent their youth flipping through the pages reading the reviews and editorials.

The days of the magazine are drawing to an end for many industries, with video game websites covering everything from truly hardcore to highly niche, we all demand our information as soon as possible. If a company like Ziff Davis is selling its properties, we want to know the minute it is announced, when 1UP is purchased by UGO we want to know the minute the ink dries. Why? Because we can.

January 2009 marks the last issue of Electronic Gaming Monthly. After Hearst Corporation (owner of UGO) purchased 1UP from Ziff Davis it was announced that EGM would be seeing its last issue. Sure, there was a chance this would occur without the acquisition as well but the sadness wouldn’t be any different. We’re sure the staff will find a great home writing for another publication or in the online world, but it is sad just the same.

Along with the sad news of EGM closing, we’ve heard a number of folks at 1UP have also been effected by Hearst Corporations purchase of 1UP which has many people out of a job during tough economic times. There has been rumor the 1UP podcasts being ditched as well, but we have heard nothing official yet (please comment with official stories if you hear).

Of course, 1UP is “officially” rejoicing at the news but we know this is part of the “smoke and mirrors” that is an acquisition. A few, now former, 1UP folks have been using twitter and game forums to voice their own “opinions” of the purchase.

This is a rough economic time for many people, printed magazines, online publications and others. The only shining light is knowing many of these individuals will find new places to call home or start brand new online publications to compete against their old company. Talent will not go restricted, they will no doubt group together to form new aged publications to show off why the big boys are flailing in the dark.

We wish them all well in their efforts to find success.

Activision Blizzard Trying To Scare Off Competition?

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