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Edited by Bistromathics:
5/7/2014 1:38:54 PM
31
Activision to spend half a billion on Destiny's development and marketing
[url=http://reuters.com/article/idUSBREA4501F20140506?feedType=RSS&irpc=932]Talk about betting big.[/url]
[quote]Activision Blizzard Inc intends to spend $500 million developing and promoting "Destiny," potentially breaking industry records as it seeks to build the sci-fi role-playing videogame into its next multibillion-dollar franchise.
CEO Bobby Kotick revealed the number, which dwarfs Hollywood spending on some of its biggest firms, during the Milken conference in Los Angeles last week. A company spokesperson said on Monday the number was accurate but also included marketing, packaging, infrastructure support, royalties and other costs.
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[b]Analysts said $500 million would likely be a record spent on a single game - especially one without an established track record. To break even, Activision would have to sell about 15 million to 16 million units of a $60 game, analysts said.[/b]
"It's a head scratcher, said Sterne Agee analyst Arvind Bhatia. "For brand new IP, it's tough but it could post a big surprise."
Bhatia expects the game will sell 8 million units. "Grand Theft Auto V," which hit stores last September, was a runaway success with over 32.5 million units as of February this year. But it was the fifth installment of a critically acclaimed series that had become an indelible component of popular youth culture.[/quote]
Destiny has apparently joined an elite group of games that must not only sell exceptionally well, but also sell well enough to eclipse unprecedented budgets. According to (traditionally shaky) analyst claims, this means selling twice as much as predicted.
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1 ReplyEdited by ZER0: 5/6/2014 5:24:37 PM[b]HOLLLLYY SHIT![/b] I thought Destiny was going to cost overall 150 to180 million dollars. But 500 million dollars! 0_O You can feed a small country with that amount of cash! I understand that network infrastructure costs a lot and marketing costs even more than the game. But damn this game needs to sell around 20 million copies to turn over a profit. I don't know if this is the stupidest decision ever or the smartest. Seems like the former because we haven't seen anything that has knocked our socks off. The production value of Destiny doesn't even seem anywhere near 150 million dollars with its cookie-cutter animations and gameplay. I'm coming off as an ass saying all this stuff. But 500 million dollars?!
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1 ReplyAnd this is whats wrong with AAA development, pumping massive amounts of money into games and having way to high of expectations on how well the game will do. Then when the game doesn't do as well as they want its innovation and creativity that take a hit, this is exactly the reason why we keep the same cookie cutter games each year.
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5 RepliesIt's going to come down to how well that money translates to a final product. If Destiny ONLY feels like a $60 title, then it's sequels aren't going to make it in a market where new ideas are constantly coming out. Bungie needs to shoot for the $120 dollar experience packed into a $60. It's the only way this franchise can succeed. Go big, or go home.
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4 RepliesWorse comes to worst, Activision can always fall back on their cash cow, Call of Duty. I think Activision aren't really concerned about making money on Destiny right now. I'd image they just want to establish the new franchise for future milking.
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3 RepliesAnd they still chose not to release on PC. The market that has repeatedly proven to devour any sort of RNG based loot game. I'm not trying to say Bungie/Activision are making poor business decisions but I am trying to say they're making sanity questioning ones.
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3 RepliesEdited by EndlessDream: 5/6/2014 11:43:28 AMhow many "get your ass to mars" collectors editions is that? I think they will make their money back and then some. http://www.bungie.net/7_The-Ultimate-Collectors-Experience/en/News/News?aid=11464 7 million dollars a pop........like I said, and then some
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That's pretty crazy. And I won't say that I'm very confident Destiny will meet the kind of sales they want. But assuming that it plays well, the sequels once the franchise is established? They'll be bigger in terms or reception. And one of the other quotes further down in that article:[quote]The spokesperson added that investment in the next generation engine and a "robust backend infrastructure are upfront expenditures that should reduce future product development costs."[/quote]So sequels and DLC might be cheaper on the production end because they won't have to worry about a lot of the backend and foundation of the game, and therefore easier to make a profit.
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1 ReplyThey compare it to gtaV. I really liked GTA V but I want this more than I wanted that or any other game in the past few years. I'm also a PlayStation owner who has never played a bungie game. Found out about this game last year, saw the demo, heard that it was fps online with RPG elements, fell in love. Signed up for bungie.net, preordered the game, registered 17 cards and beta, told every gamer I know. Currently waiting for a ps4 bundle announcement. Call me crazy but I think Bobby at Activision is a smart guy to bet on these guys. Again, just found out about Bungie in October 2013. Nothing against xbox, just didn't have any friends with one. after joining the community and seeing the fans and employees of bungie, I wish I would've been involved from the start
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People don't seem to understand how big of a following bungie has. Most of the people that played the halo games will be getting this. And it's going to be for both consoles this time around. After it's release, more will flock to it through word of mouth. They have nothing to worry about IMO. Are they taking a risk? Yes. But these ppl know what they're doing.
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4 RepliesSo on Eurogamer they said that Destiny's budget is 120 million. That leaves 380 million in advertising. I can't see that being true. I mean what are they going to do, have every third commercial running up to release be a Destiny one?
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Edited by DevilHunterJayB: 5/6/2014 7:09:48 PMWell learning that destiny is pretty much a huge game, with a huge team, the dlcs and sequels expanding and evolving the game. Spending half a billion doesn't really surprise me; Also a team of people will still be in the studio working on the game 24/7.
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3 RepliesSurely the 500 million is over the ten years planned for it which actually will be 4-5 games including DLC.and on all consoles and possibily PC for later games.
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19 RepliesEdited by Icy Wind: 5/6/2014 11:20:12 AMI foresee Activision losing money on this. 500 million for a game is ridiculous, even for one from an established studio like Bungie. This whole "The game will last ten years" is a gimmick, in my opinion. Before people argue and tell me I'm a troll, prove me wrong.
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4 RepliesBlizzard put in the money.
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1 ReplyEdited by FairlySplendid: 5/6/2014 3:59:52 PMGTAV sold what? 30+ million copies by February 2014? That was on two consoles? Destiny is launching on four consoles.
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500 million dollars? Where the hell are our space ships that you can [b] actually control and fly[/b] in game Bungie?
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1 ReplyIs this just for launch or is this 500 million over the 10 years which would not be that much
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4 RepliesI have no doubt that destiny will meet those goals. Blockbuster games kinda sell like pancakes. Just need a little more deceptive advertising magic. Yay industry!
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1 ReplyWhat kind of retard expects 16 million out of a brand new IP?
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Destiny will make more than what you think. The first day will sell well over 5 million units. This is a totally different game which is attracting gamers that never liked halo so the amount invested to me is nothing to what it will make and also if you think about it Activision must see the potential or they wouldn't do it, wait till you have played then comment it will most probably supprise you.
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7 RepliesI'll copy what I said on another thread. [quote]$500 million? Let's be honest. Destiny WILL NOT be selling 16 million copies. It's a brand new IP and there are plenty of people who don't know about it, let alone wanting to buy it. Casual gamers normally make up a game's majority sales, and none of the casual gamers I know of are interested in any game but their annual dose of CoD and FIFA. I would be very surprised if this game breaks 10 million in sales. Furthermore, the main MMO market, PC isn't even getting this game - and as a primarily PC gamer, I know of many who would buy this game for their PC in a heartbeat, but not for their consoles. It's going to be more than just an uphill struggle for Bungie and Activision to sell enough copies to make a profit. If the budget is $500 million, I think Activision will be relying on the people who've bought the game to buy microtransactions *shiver* and micro-DLCs, or rather, the bane of gaming. (and just for clarification, the Bungie-Activision Contract DOES say that there will be microtransactions and DLC in the game, which really f***ing sucks.) Basically, this isn't good. I guess we're just gonna have to wait and see.[/quote]
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Edited by FairlySplendid: 5/6/2014 1:48:25 PMBreaking News: Activision and Bungie just announced a partnership with Scrooge McDuck.
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That is beyond ridiculous.
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Although this is a ridiculous amount of money I can't see them just throwing it into the wind. They must have people who's entire job is to make sure this investment makes sense, we just haven't seen $500 million worth of Destiny yet.
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Just on the first game? Damn.
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3 RepliesThis game isn't going to sell that well. Its a MMO being released only on consoles in the fall when other already established franchises are going to be released. And statistic show people are more likely to buy sequels then bran new games that haven't proven themselves Shouldn't Activison know this it took call of duty 5 or 6 games to reach massive retail sales.
