Activision to spend $500 million on destiny

#1garydavexxxPosted 5/6/2014 8:39:26 PM
http://www.bbc.co.uk/news/technology-27292642

^^ interesting read. That's a lot of dough!

I hope the investment pays off!
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#2DarthUchiha91Posted 5/6/2014 8:44:48 PM
So that COD money the sheep was willing to spend may actually be put to good use?
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#3ComradeRyanPosted 5/6/2014 8:51:21 PM
I consider this good news because Destiny will have a lot of content. Activision will definitely get a decent return on their investment.
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#4TyrannicalPosted 5/6/2014 10:32:25 PM
I'm afraid this game is going to be boring and I'll be sick of it after 2 weeks just like Borderlands.
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#5HeracylostPosted 5/6/2014 10:35:24 PM
Another fps, with rpg elements. Woop te do. I understand it's this generation that's obsessed with pew pew shooters. But I've been over it for a few years now.
#6facetioussagePosted 5/7/2014 2:55:18 AM
DarthUchiha91 posted...
So that COD money the sheep was willing to spend may actually be put to good use?


That depends on your definition of good use, I would suppose.

Half a billion bucks could hire 6,250 people at 80K/year for one year. I don't think the team is that big. I also don't know offhand what the development cycle is. I'm pretty sure that they aren't paying 80K to every single team-member, though.

Much of that budget will be going into marketing and promotional events. They are sticking their necks way out by allocating this much to a new IP. If they were to keep every penny of the $60 USD price for a new game, they'd still have to sell 8.66 million copies to break even.

The actual break-even point is much higher, since they won't collect the entire $60, of course. Also, they are hoping to turn a profit. They need this game to sell beyond 20 million copies with that kind of money behind it...and it would still not be all that great of a return since they can easily sell a new COD with lower development costs and brand recognition and get a far greater ROI.

So that half-a-billion means market saturation and a terrific excuse to throw large promotional events with booze and "product models" in all sorts of cites that can be written off as business expenses. But with that kind of a budget, I am pretty much imagining seeing ads for the game everywhere they can think of. I wouldn't be surprised to see a billboard in the restroom of an old-age home at that budget.
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#7aluminafalconPosted 5/7/2014 3:29:11 AM
I believe someone calculated it to 15 million in sales needed to break even.
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#8facetioussagePosted 5/7/2014 1:02:42 PM
aluminafalcon posted...
I believe someone calculated it to 15 million in sales needed to break even.


If the publisher gets about 55% of the retail price, then yeah...that would be the break-even point.

So they would certainly need to sell considerably more than that in order to deem the game a success. Nobody wants to spend that money just to break even, after all.

I honestly think that kind of budget for a game is pretty ridiculous and makes it that much harder to get a financially successful game. The problem with executives is that they don't really look at it from the consumer side, and simply take advice from marketing departments who insist that more product awareness will generate sales.

Advertising does help to an extent, but one can easily overdo it.

The Tomb Raider reboot sold something like 3.5 million in it's first 3 weeks of release, but was considered a financial failure by SquareEnix. The reason was because they had such an enormous budget for the game...much of which was marketing. Something on the order of 100 million all-in to get the game into our hands.

Well, yeah, of course it's going to be a financial failure when you overspend on it. With this game at a stated allocation of half a billion dollars, it would seem that not one of these executives seems to be aware that they are selling video games and not soap.

Ultimately, Tomb Raider did bring in enough to be profitable, but the real thing holding it back wasn't overspending on development costs, but rather on oversaturating the marketing of it.

The best case scenario is that Activision is simply inflating the actual budget for this game to sound impressive. If they are actually going to spend that much, I think they are just throwing a lot of money away.

Word of mouth still works best for hype among gamers, anyway. Give some actual in-game footage of gameplay and some narration on any innovative features and if it resonates with gamers, then they will tell each other about it and build each other's anticipation. Heck, a few Youtube videos could generate an enormous amount of buzz. Getting some hands-on with some reviewers/previewers to give an idea what the experience is like is good too.

That CAN backfire, however, if the game is just a retread of things that have been done before with minor variations....

But dropping a ton of money on some promotional event with celebrities and award-ceremony production values and some eye-candy models with a slew of game-related banners all over the place may appear to generate excitement, but I don't think that sort of thing sways the actual purchasers of a game. Well, some people would be swayed by empty hype...there are always people who do....but I don't think that can happen in enough numbers to cover a half-billion investment.
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I don't hate you. I wouldn't push you into the path of a moving train. I just don't like you; so I wouldn't pull you out of the way, either.
#9SolisPosted 5/7/2014 5:24:57 PM
ComradeRyan posted...
I consider this good news because Destiny will have a lot of content. Activision will definitely get a decent return on their investment.

If it follows the spending method they had for titles like Modern Warfare 2, then only about 1/5th of that money is actually going into developing the game.
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