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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Nintendo’s Non-Gamer 50+ CrowdNintendo’s Non-Gamer 50+ Crowd

While Sony and Microsoft one-up each other with fire sales on old hardware and blockbuster titles like Gears of War 2 and Resistance 2, Nintendo goes for something completely different… older people.

You’re only as old as you feel, but it’s hard to discount Nintendo’s attack on a demographic when they visit the American Association of Retired People’s Life@50+ Expo in Washington, D.C. this week. Odd move, indeed… or is it?

Retired people may have a bit more time than a busy adult with two kids and a few jobs to hold down. While young adults may want to game, they may not always have the time in their schedule, especially in the United States where people forget what “vacation” means. Retirement is a time to reflect upon your life, your deeds and enjoy the fruits of your labor with your grandchildren; it’s time to get a Wii.

The Wii is the perfect gift for retired folk who want to entertain themselves with something new and different without having to keep up with game releases. The Wii doesn’t have very many games when compared to the 360 and, although many get low review scores, retired folks aren’t scanning the Internet for weekly game reviews and news. They may not be the most in-touch with the industry but that’s okay, they’re non-gamers.

All that Nintendo has to do is sell the unit to them, it may sit on the shelf for months or only get pulled out when the grandchildren visit, but it’s a low-cost unit with games like Wii Sports and Wii Fit, what more do they need?

(Thanks, Kotaku)

Small Games Make Big WavesSmall Games Make Big Waves

The game industry is doing “okay” in this bad economic time compared to other industries.  Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

wiiwareWe’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.

Episode 249: Milestone LoomingEpisode 249: Milestone Looming

For those of you good at math, you might notice that the TD Gaming Podcast is one episode away from a special number. While we have a surprise in store for loyal listeners, there’s still this week’s news to discuss. For starters, the classic Silent Hill 2 is the subject of the Gaming Flashback, even though none of the podcasters have gotten a chance to actually play it.

There’s also some interesting news to discuss, including:

  • Christian group accuses The Old Republic of “warping kids” with pro-gay message
  • Rumor: Next Harmonix project being released on XBLA, PSN, and Facebook
  • EA Sports: SSX will bring extreme sports videogames back to prominence
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  • SNK brings Neo*Geo back as a handheld

There’s plenty of Reader Feedback, but there’s no Question of the Week, because there’s a special episode coming up. Ooooh, what could it possibly be?