Activision stamps $500mil on Destiny, doubles cost of GTA V....
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Activision stamps $500mil on Destiny, doubles cost of GTA V....
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.
Activision, eyeing the flagging growth of its long-running "Call of Duty" action-shooter franchise, is eager to lay the foundation for its next multi-game blockbuster series.
Investors hope that "Destiny," scheduled for release on September 9 from Bungie, the same studio that created Microsoft's best-selling "Halo" franchise, could re-invigorate Activision's revenue, which slid 6 percent in 2013.
The company signed a 10-year contract with Bungie in 2010 that gives it worldwide distribution rights and significant control over the potential franchise's development.
"If you're making a $500 million bet you can't take that chance with someone else's IP," Activision CEO told the Milken conference. "The stakes for us are getting bigger."
"Destiny" is a cross between a traditional shooting game format and a role-playing game in which gamers play characters in a real-time online world. The title allows gamers to play "Guardians" who protect the last city standing on a post-apocalyptic Earth.
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.
"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.
That's an awful lot of money and if you ask me I can't see the fame becoming profitable for awhile if at all....
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.
Activision, eyeing the flagging growth of its long-running "Call of Duty" action-shooter franchise, is eager to lay the foundation for its next multi-game blockbuster series.
Investors hope that "Destiny," scheduled for release on September 9 from Bungie, the same studio that created Microsoft's best-selling "Halo" franchise, could re-invigorate Activision's revenue, which slid 6 percent in 2013.
The company signed a 10-year contract with Bungie in 2010 that gives it worldwide distribution rights and significant control over the potential franchise's development.
"If you're making a $500 million bet you can't take that chance with someone else's IP," Activision CEO told the Milken conference. "The stakes for us are getting bigger."
"Destiny" is a cross between a traditional shooting game format and a role-playing game in which gamers play characters in a real-time online world. The title allows gamers to play "Guardians" who protect the last city standing on a post-apocalyptic Earth.
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.
"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.
That's an awful lot of money and if you ask me I can't see the fame becoming profitable for awhile if at all....
Killswitchmad- Fifth Wall Vet
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Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....
If it doesnt sell bungie are fucked
HomerRamone2084- Fifth Wall Vet
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Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....
^ ^ this. I can't see Activision wedging up this much money though without feeling confident the quality is there to see a return in time.
N1NJA FWG- Admin
- Posts : 12711
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Age : 48
Location : Birmingham
Re: Activision stamps $500mil on Destiny, doubles cost of GTA V....
I hear what your saying - but they plough millions into COD every year.
I realise they get it back - but doesnt stop COD sucking just a little more each year..
Anyway point is activision are almost the new EA - buying companies, game doesnt meet requirements dump company.. I propse a minutes silence for Bizarre !
I realise they get it back - but doesnt stop COD sucking just a little more each year..
Anyway point is activision are almost the new EA - buying companies, game doesnt meet requirements dump company.. I propse a minutes silence for Bizarre !
HomerRamone2084- Fifth Wall Vet
- Posts : 875
Join date : 2013-05-10
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