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)
@Do it like it’s 2013
It’s good to see Nintendo finally getting it’s stuff together. But I still say they missed their chance. They had a large release advantage over Xbox One and PS4 and they wasted it. They are now forever cursed to play catch up.
@All your videos are belong to us
I kick this right into the lawyer’s ball park. I remember the days of the Xbox and PS2, when I gave developers money for their game and that was the end of our interaction. But the modern game industry spawned this horrible mutation of gaming, where developers still have a considerable impact on my gaming experience post release. After Xbox 360 I got used to continuous updates. But it keeps getting worse. The gaming industry is nurturing it’s own Big Brother, which is largely controlled by non-gaming people. No good will come of this.
@Cell Games
I agree with Jonah. I was impressed with the inFamous games. But I didn’t see any differences between multiplatform titles. Cell was a poor choice for Sony; much like HD DVD was for Xbox 360. I am eager to pick up a PS4 and see what Sony’s new hardware is capable off.
@Plus one Paul!
Earlist thing I remember. How long has it been since then? I will miss Paul. He brought a very unique and interestig point of view to the gaming industry. I learned a lot about game development from him. I also realised that I never want to be a game developer. Good luck to you Paul. And get a proper job. It’s time you started puling your weight for the economy (mandatory hate mail).