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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id Software Interested in Nintendo’s Wiiid Software Interested in Nintendo’s Wii

Nintendo is seeing some great successes with their console — duh. What is the best way to provide evidence that Nintendo has a hit with their new little white console? Perhaps the bright blue eyes of id Software? Originally, it was said that id Software wasn’t really interested in developing games for the Wii, perhaps because it goes against all that id Software has developed their company towards since 1991?

keenid Software has always leaned toward bleeding edge content, pushing hardware to its limits and utilizing technology that has just hit the market. Nobody is surprised when they’re forced to upgrade their computers to play the latest id Software creation to its fullest extent. This is the price for being top dog in graphic engines, but now they’re changing their tune a bit.

Okay, it has to be said, is id Software contemplating a Wii game simply because of Nintendo’s success with the console? The core id Software audience isn’t grandma and grampa or the 10-year old kid next door. But, money talks. We’re not saying id Software is hurting for money although we’re not sure what keeps them floating given their last major title was yet another Quake game launched in 2005 with 2004’s DOOM 3 looking like an old man by now. Everyone is waiting on Rage which was announced in 2007 and still hasn’t been given a release date.

Perhaps id Software could use a little Wii to get their name back in the press, get bloggers talking and net them some fresh cash from a large pool of Wii owners looking for their next tennis game. Okay, nobody is going to believe they’d work on a silly Wii Sports clone but they’ve not announced, yet, what this “exclusive Wii” game will be. Carmack did say the Wii is “out of sync with the developments that are currently going on at id,” which suggests they’re going to be working on a new property or perhaps bring back an old property… Wolfenstein 3D, Commander Keen or maybe some Heretic action?

We’ll assume this upcoming id Software title won’t be 100% kid friendly even targeting a Wii platform. Are they going to develop a title for the Wii simply because they know it will be launched on a console with the largest install base in the world? Or, perhaps its a new found passion that Carmack has developed from sharing the Wii experience with his four-year old boy?

(Thanks, 1up)

PlayStation 3 Online Community Matches 360PlayStation 3 Online Community Matches 360

Although PlayStation 3 is still third in worldwide sales, behind the Xbox 360 by about 5-million units, the PS3 community services now have as many online gamers as Xbox 360 says Sony. Sony posted on their blog saying, “with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.”

Although US sales of the 360 are killing the PS3, the community membership does give gamers a reason to get online with the PS3. Nobody wants to buy into a console that has very few active online games or an easy way to find friends (*cough* Wii). Having 14-million users helps them bridge the sales gap by building gamer confidence. Social networking is the new term; gamers want to socialize with each other online and with their consoles.

Microsoft recently announced their 14-million subscriber base and continue to update folks when they hit big milestones. The main difference, LIVE is a subscription system — those 14-million gamers are also paying for the service (we’re not sure if silver memberships count in that figure) and this means income for Microsoft while Sony does their service for free.

Although Microsoft is making money on their service, no doubt Sony will bypass their total membership because it has no cost barriers to play. The biggest cost barrier to get on Sony’s network is the PS3 itself and many gamers hold out for price drops which aren’t coming anytime soon (so says Sony). However, building a larger community on a free network allows Sony to siphon gamers to buy downloadable content, games, music, movies and all the goodies that go with these services.

It seems a better idea to triple your audience with a free service knowing a large amount of “hardcore gamers” attach themselves to the easy to buy content on said service. So, is it better to make US $50.00 a year on half the population or give triple that population an opportunity to spend more money on content?

“Thanks to all of you, PS3’s momentum is stronger than ever. There are nearly 17 million PS3 systems around the world, and in the United States, PS3 hardware sales are up nearly 100 percent from where we were at this time last year. Software sales have tripled from a year ago. Yes, we’re proud about everything we’ve accomplished, and we’re even more psyched about where we’re going with our holiday software lineup” (playstation.com)

Eventually gamers may have access to Sony’s Home project, which could raise the community figures and give Xbox 360 something less to brag about. Although, we’re sure Sony would rather be boasting “number one” console again, at least they’ve finally got a win on their side because 14-million users is only the beginning for them.

Plus, it’s hard to argue free.

Wii Friends Codes, Not PerfectWii Friends Codes, Not Perfect

Satoru Iwata, president of Nintendo has gone on record with his thoughts of the Wii friends code system. He’s a father, with a daughter, so he’s letting his own personal judgment get in the way of a good community built game system.

In talking about the open access of the Internet he said, “I as a father do not feel like allowing my daughter be engaged in that kind of world.” He’s more inclined to protect his children from the dangers of the Internet and random (often insulting) people by requiring a 1:1 paring with real friends.

For many gamers the Wii friends code system is far from perfect. It’s so far from perfect its a barrier to entry and any form of fun on the console platform. Nobody is against protecting their children, a parent will be the first to admit they’re desire to protect their kids over all else, but clearly someone isn’t thinking outside the box on this topic.

The only way to protect your children is to enforce a large numeric key which you must hand deliver (or e-mail) to your friends in order to play? We’ve got more creative enforcement in child safety on our TV sets using the VCHIP which allows parents to password protect certain television programming.

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