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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When it comes to standing out amongst the other consoles, Sony cannot compete with the Wii‘s quirky cuteness and Xbox 360‘s one-year lead on sales, games and overall functionality. They were late to the game because of technological advances in Blu-Ray and overall graphic horsepower. They’re providing a console that will still look “teh awesomes” ten years down the road, similar to the attack plan of the PS2 product which still sells today.

Sony’s Scott Steinberg, Vice President of Product Marketing for SCEA had nothing but great things to say about the console he’s marketing…

“I think that we’re seeing, graphically, PS3 games starting to create some distance and some of the other competitors are going to feel that they’re getting long in the tooth, looking quite dated, because they haven’t created that ten-year vision from a horsepower standpoint” (psu.com)

Really? Does anyone look at the Xbox 360 and say “this thing looks dated.” Each new title release continues to look more advanced and more graphically appealing than the last. Sure, Resistance 2 looked graphically epic, but the title isn’t on the shelves yet. As a matter of fact, very few PS3 titles are on the shelves when it comes to graphically appealing titles everyone wants.

As Nintendo has proven, it’s not always about the advanced graphics but the fun value and access to many titles across many genre’s of gaming. We’re happy about a nice 10-year vision but there is a reason classic games like Pac-Man, Missile Command and Galaga are still talked about and played by gamers: simple and fun.

Microsoft may not have a ten year vision, this is true, but I’d rather have a hot console I can play for the next six years than own a more expensive console with few games until its third year of life. The PlayStation 3 has been beating the Xbox 360 sales in 2008, is this too surprising given the fact that the Xbox 360 was out a year ahead? Sales aren’t always going to be rosy and over the top (unless it’s the Wii).

Rather than concentrate on how many more consoles the PS3 has sold compared to the 360, look at how many Wii consoles have sold to the graphically superior PS3. Perhaps Sony should speak less to the gamers about how awesome their console is and speak more to the developers so we can get titles worth buying for the console. Gamers only win when a console has games for them to play.

Would You Buy An Apple-Based Console?Would You Buy An Apple-Based Console?

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Competition is a great way to drive down costs, drive up expectations and give consumers new innovative products with better quality. Imagine if Apple got into console development and produced a new highly sexy product with the hype and consumer desire of the iPhone or iPod.

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Apple’s showing a huge surge in recognition and sales thanks to the iPod and growing desire for Apple hardware competing against Microsoft’s Vista operating system. As more consumers turn to Apple for their music and mobile gaming needs, Apple must see windows of exploiting the gaming market further.

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