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)
Hi guys great episode!
I found Infamous to be a pretty easy game, if they make the third even more so just seems sad. Not a lot of games seem to be as difficult as the old 8-bit games. I do like the paper trail feature Jordan talked about and I know Rockstar has a similar thing though not quite as cool as unlocking more missions through using the website, you can still track your progress of various games on the site.
Hearing Paul spending 200 on in game purchases on a FB game just makes me sad. I know it’s his choice on how to spend his money but a lot of FB games really seem to encourage you to spend real money to get fake in game money just to speed things up and make the game enjoyable. The Foxtrot comic Jonah brought up is a good example of why I don’t like those games. I feel like it’s lazy game making and undeserving of my money. I know they got to make money to pay their bills but I don’t like what they are selling. I guess though if there is a demand for these type of games who am I to judge? I’ll stop beating the dead horse now.
@Occulus bought by FB: When I first heard the news I was like “Why?” I wasn’t the only one scratching my head at this. I really didn’t want to think of Virtual Farmville. I do like the idea though of remote classroom, though I know we already have video chat for that sort of thing. Is anyone going to really want to wear this thing on their head? It’s like a fancier virtual boy.
QOTW: I subscribe to Gameinformer, which can be read online now. It does seem like it’s less and less necessary now though given how easy it is to hear about gaming news.