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Destiny

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Edited by Bistromathics: 5/7/2014 1:38:54 PM
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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. ... [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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  • 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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